© STMicroelectronics Components | April 28, 2020
STMicro sees revenue increase YoY - but tumbles QoQ
STMicroelectronics reported net revenues USD 2.23 billion for the first quarter ended March 28, 2020. The operating margin stood at 0.4%, while net income was reported to be USD 192 million.
Jean-Marc Chery, STMicroelectronics President & CEO, commented: “In the first quarter of 2020, net revenues increased 7.5% year-over-year, led by higher sales of our Imaging products and growth in Analog and Microcontrollers, partially offset by lower sales in Automotive, Power Discrete and Digital. Operating margin improved to 10.4% and net income increased 7.9% to $192 million." “Our revenues came in about 5% below the mid-point of our outlook when entering the quarter. The COVID-19 outbreak and subsequent containment measures by governments around the world brought challenges in our manufacturing operations and, especially in the last few days of the quarter, logistics. Our Q1 gross margin of 37.9% was largely in line with our mid-point target", he continued. Quarterly Financial Summary
“We exited the first quarter with a stable net financial position of $668 million, available liquidity of $2.7 billion and available credit facilities of $1.1 billion. Our second quarter outlook is taking into account the declining demand environment, especially in Automotive, as well as the ongoing operational and logistics challenges due to current governmental regulations. We anticipate that all of our manufacturing sites will be operational. Some of them will run at reduced capacity, with unsaturation charges currently estimated to be about 400 basis points",
First Quarter 2020 Summary Review
Net revenues totalled USD 2.23 billion, representing a year-over-year increase of 7.5%. On a year-over-year basis, the manufacturer recorded higher sales of Imaging, Analog and Microcontrollers, partially offset by lower sales in Automotive, Power Discrete and Digital. Year-over-year sales to OEMs increased 22.5% and to Distribution decreased 21.4%. On a sequential basis, net revenues decreased 19.0%, about 5% below the mid-point of the outlook when entering the quarter. The COVID-19 outbreak and subsequent containment measures by governments around the world brought challenges for the companies manufacturing operations and, especially in the last few days of the quarter, logistics. All product group revenues declined on a sequential basis.
Gross profit totalled USD 846 million, representing a year-over-year increase of 3.5%. Gross margin of 37.9% decreased 150 basis points year-over-year, mainly impacted by price pressure and unsaturation charges, including COVID-19 workforce related restrictions. First quarter gross margin was 10 basis points lower than the mid-point of the company’s guidance.
Operating income increased 9.4% to USD 231 million, compared to USD 211 million in the year-ago quarter. The company’s operating margin increased 20 basis points on a year-over-year basis to 10.4% of net revenues, compared to 10.2% in the 2019 first quarter.
“We will drive the Company based on a plan for FY20 revenues between $8.8 billion and $9.5 billion. We plan for growth in the second half over the first half to be in the range of $340 million to $1.04 billion. Growth will be driven by already engaged customer programs and the removal of supply constraints. The growth range is linked to the evolution of the market", the CEO continues.
|(US$ m); (U.S. GAAP)||Q1 2020||Q4 2019||Q1 2019||Q/Q||Y/Y|
|Net Revenues By Product Group (US$ m)||Q1 2020||Q4 2019||Q1 2019||Q/Q||Y/Y|
|Automotive and Discrete Group (ADG)||753||924||903||-18.4%||-16.6%|
|Analog, MEMS and Sensors Group (AMS)||852||1,085||552||-21.5%||54.3%|
|Microcontrollers and Digital ICs Group (MDG)||623||742||617||-16.0%||1.0%|
RF manufacturer orders multiple solstice plating systems ClassOne, a provider of semiconductor electroplating and surface preparation systems, has received multiple tool orders from an unnamed RF device manufacturer.
Siltronic to expand with second 300 mm fab in Singapore Siltronic announces that the company has decided to build a second 300 mm fab at its site in Singapore to support the strong demand of the tight semiconductor market.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
STMicro manufactures first 200mm SiC wafers in Sweden STMicroelectronics has manufactured the first 200mm (8-inch) Silicon-Carbide (SiC) bulk wafers for prototyping next-generation power devices from its facility in Norrköping, Sweden.
SkyWater to invest $56M in Minnesota capacity expansion SkyWater Technology's Board of Directors has approved USD 56 million in capital investments to expand the capacity and capabilities of its Minnesota facility and to accelerate the company’s entry into the 200 mm GaN market.
Silicon Labs completes sale of Infrastructure & Automotive business Silicon Labs announces that it has completed the divestiture of its Infrastructure & Automotive business to Skyworks Solutions for USD 2.75 billion in an all-cash asset transaction.
Sponsored content by ICAPE GroupICAPE Group Service Office in Asia In a context where traveling can be difficult, finding a good partner for your production of electronics parts can be a real challenge. With its unique organization and a Headquarters in China where all the key services are located close to the factories and fully operational, ICAPE Group provides a global solution.
Strong improvement for RoodMicrotec Semiconductor supplier RoodMicrotec's total income during the first half of 2021 amounted to EUR 7.3 million, which is 36% above the total income of the same period 2020 and 12% higher than the total income reported for the second half of 2020.
TSMC says its to early make a final decision on German expansion Semiconductor foundry giant TSMC says that it’s too early to say whether the company will expand with new factories in Germany and that discussions are still in early stages.
Sivers Photonics invests to expand capacity Sivers Photonics, a part of Sivers Semiconductors, is looking to expand it manufacturing capability and capacity with a fab investment of up to GBP 3 million in 2021.
Molex goes with FUJI NXT series pick-and-place machines Molex CVS Dabendorf GmbH has decided to use the NXT III placement machine from FUJI EUROPE CORPORATION GmbH.
Inductor current measurement in switched power supplies Question: How do you measure inductor current?
Fingerprint Cards partners with Mouser Electronics Swedish biometrics company Fingerprint Cards has entered into a collaboration with global distributor Mouser Electronics.
GF CEO on Intel rumour: “There’s nothing to that story” In an interview with Jon Fortt from CNBC, GlobalFoundries’ CEO Tom Caulfield sets the record straight regarding the Wall Street Journal’s report of a potential USD 30 billion acquisition by Intel.
Applied Engineering to set up JV operations with Malaysian counterpart US-based Applied Engineering (AE) will be establishing a joint venture (JV) plant with Malaysian counterpart, QES Manufacturing Sdn. Bhd. (QES) in Batu Kawan Industrial Park, Pulau Pinang later this year.
GlobalFoundries to build new fab in upstate New York The semiconductor manufacturer says that it will build a new fab in Malta, New York in a private-public partnership. The new fab willl "double the site’s capacity" and create more than 1'000 new direct high-tech jobs.
MKS completes its acquisition of Photon Control MKS Instruments has completed its previously announced acquisition of Photon Control Inc.
Renesas to close its Yamaguchi factory next year Renesas says that it has decided to consolidate the Yamaguchi Factory (located in Ube, Yamaguchi Prefecture in Japan) of its wholly owned subsidiary, Renesas Semiconductor Manufacturing Co., Ltd. at the end of June 2022.
Intel looking to buy GlobalFoundries for $30 billion? US chipmaker Intel is reportedly in talks to acquire semiconductor manufacturer GlobalFoundries for some USD 30 billion, reports the Wall Street Journal citing sources familiar with the matter.
A simple way to measure temperature using one GPIO digital interface Question: How can I make an analog measurement if I only have a single GPIO left on the FPGA/microprocessor for my system?
New owner for crystal growth business in Eisenach Jenoptik has sold its crystal growth business to Hellma Materials, and will continue to focus its business on photonic applications. Hellma Materials takes over all 25 employees, and continues all business activities.
Linear Integrated Systems partners with Digi-Key Electronics Linear Integrated Systems, a designer and manufacturer of precision, high-performance, small-signal discrete semiconductors, has entered into a new partnership with Digi-Key Electronics.
Conti invests in Israeli industrial sensing start-up Feelit Continental has acquired a minority stake in the Industry 4.0 start-up Feelit, headquartered in Tel Aviv, Israel. Both companies have agreed not to disclose the amount of the holding.
Skeleton Technologies brings in additional capital On the first of July, Skeleton Technologies, announced the successful closing of a further EUR 29 million in its Series D financing. The total financing in Round D amounts to EUR 70.4 million.
Fingerprint receives follow-on order for its T-Shape sensor Swedish biometrics company, Fingerprint Cards has secured an additional volume order for approximately 250,000 units of T-Shape sensor modules from one of the world’s top three card manufacturers.
Minebea Mitsumi acquires Omron’s of 8-inch fab Minebea Mitsumi’s subsidiary Mitsumi Electric, has entered into an agreement with Omron Corporation for the acquisition of Omron's semiconductor and MEMS fabrication plant in Yasu, Shiga, Japan – as well as its MEMS product development function.Load more news