PR No. C2842C
STMicroelectronics Reports 2017 Fourth Quarter
and Full Year Financial Results
- Q4 net revenues of $2.47 billion, up 15.5% sequentially and gross margin of 40.6%, both above the mid-point of ST's guidance
- Q4 operating income of $408 million, operating margin of 16.5%
- 2017 net revenues of $8.35 billion, up 19.7% year-over-year on broad-based growth
- 2017 net income of $802 million, free cash flow(1) of $338 million
Geneva, January 25, 2018 - STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported financial results for the fourth quarter and full year ended December 31, 2017.
Fourth quarter net revenues totaled $2.47 billion, gross margin was 40.6%, and net income was $308 million or $0.34 diluted earnings per share.
"ST delivered a strong finish to 2017. Fourth quarter net revenues were up 32.6% year-over-year with double-digit growth across all product groups, gross margin reached 40.6%, and operating margin was at 16.5%," commented Carlo Bozotti, STMicroelectronics President & CEO. "On a sequential basis, fourth quarter revenues grew significantly better than seasonal at 15.5% and were 200 basis points above the high-end of our guidance, mainly thanks to higher than expected revenues in Imaging products and Microcontrollers.
"Full Year 2017 net revenues increased 19.7% on strong growth across all product groups and geographies; gross margin expanded 400 basis points, operating margin increased 880 basis points to 11.9% and net income improved by $637 million to $802 million.
"This successful year also marked the 30th anniversary of the formation of ST. We celebrate this milestone with a solid product leadership in Internet of Things, Smartphones, Industrial and Smart Driving applications, a strong market position with major customers and in Distribution, a world-class team of engaged employees, a sustainable financial performance and an industry-leading return on invested capital."
Financial Summary (US$ Million)
| U.S. GAAP
(Million US$) | Q4 2017 | Q3 2017 | Q4
2016 | FY 2017 | FY 2016 |
| Net Revenues | 2,466 | 2,136 | 1,859 | 8,347 | 6,973 |
| Gross Margin | 40.6% | 39.5% | 37.5% | 39.2% | 35.2% |
| Operating Income | 408 | 278 | 129 | 993 | 214 |
| Net Income attributable to parent company | 308 | 236 | 112 | 802 | 165 |
| Net cash from operating activities | 587 | 463 | 378 | 1,707 | 1,043 |
| Non-U.S. GAAP(1)
(Million US$) | Q4
2017 | Q3
2017 | Q4
2016 | FY
2017 | FY
2016 |
| Operating Income before impairment & restructuring charges | 428 | 292 | 153 | 1,038 | 307 |
| Free cash flow | 145 | 80 | 135 | 338 | 316 |
| Net financial position | 489 | 446 | 513 | 489 | 513 |
(1) Non-U.S. GAAP measure. See Appendix for reconciliation to U.S. GAAP and additional information explaining why the Company believes these measures are important.
Quarterly Financial Summary by Product Group
Commencing in the fourth quarter of 2017, the Company transferred the Imaging Product Division, previously reported in Others, into the Analog and MEMS Group (AMG) to create the new organization Analog, MEMS and Sensors Group (AMS) led by Benedetto Vigna.
| Product Group Revenues
(Million US$) | Q4
2017 | Q3
2017 | Q4
2016 | FY
2017 | FY
2016 |
| Automotive and Discrete Group (ADG) | 821 | 775 | 716 | 3,059 | 2,813 |
| Analog, MEMS and Sensors Group (AMS) (a) | 896 | 652 | 527 | 2,613 | 1,847 |
| Microcontrollers and Digital ICs Group (MDG) | 740 | 701 | 610 | 2,646 | 2,285 |
| Others (b) | 9 | 8 | 6 | 29 | 28 |
| Total | 2,466 | 2,136 | 1,859 | 8,347 | 6,973 |
