• Q3 net revenues $2.67 billion; gross margin 36.0%; operating margin 12.3%; net income $242 million
• YTD net revenues $6.98 billion; gross margin 36.3%; operating margin 9.5%; net income $525 million
• Business outlook at mid-point: Q4 net revenues $2.99 billion and gross margin of 38.5%

Geneva, October 22, 2020 - STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended September 26, 2020. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported third quarter net revenues of $2.67 billion, gross margin of 36.0%, operating margin of 12.3%, and net income of $242 million or $0.26 diluted earnings per share.

Jean-Marc Chery, STMicroelectronics President & CEO, commented:

• “As we announced on October 1, 2020, our Q320 net revenues increased 27.8% sequentially, coming in 690 basis points above the high end of our outlook range. This revenue performance was due to significantly better than expected market conditions throughout the quarter. Demand for Automotive products, our engaged customer programs in Personal Electronics , as well as Microcontrollers, were the main factors that contributed to this result. Third quarter gross margin came in at the mid-point of our range, and includes about 140 basis points of unsaturation charges.
• “Looking at the fourth quarter, we expect sequential revenue growth of about 12.0% at the mid-point. All product groups are expected to grow, except the RF Communications sub-group. Our gross margin is expected to be about 38.5%, including about 70 basis points of unsaturation charges.
• “For the full year 2020, we now expect net revenues at the mid-point to be about $9.97 billion, translating into 4.3% year-over-year growth, with a double-digit operating margin performance.”

Quarterly Financial Summary (U.S. GAAP)