This press release contains supplemental non-U.S. GAAP financial information, including operating income (loss) before impairment and restructuring charges, operating margin before impairment and restructuring charges, adjusted net earnings per share, free cash flow and net financial position.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information by other companies.
See the Appendix of this press release for a reconciliation of the Company's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.
Forward-looking information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those anticipated by such statements, due to, among other factors:
- Uncertain macro-economic and industry trends;
- Customer demand and acceptance for the products which we design, manufacture and sell;
- Unanticipated events or circumstances, which may either impact our ability to execute the planned reductions in our net operating expenses and / or meet the objectives of our R&D Programs, which benefit from public funding;
- Financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
- The loading, product mix, and manufacturing performance of our production facilities;
- The functionalities and performance of our IT systems, which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers or suppliers;
- Variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
- The impact of intellectual property ("IP") claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
- The ability to successfully restructure underperforming business lines and associated restructuring charges and cost savings that differ in amount or timing from our estimates;
- Changes in our overall tax position as a result of changes in tax laws, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
- The outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
- Product liability or warranty claims or recalls by our customers for products containing our parts;
- Natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, health risks and epidemics in locations where we, our customers or our suppliers operate;
- Changes in economic, social, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, military conflict, social unrest, labor actions, or terrorist activities;
- Availability and costs of raw materials, utilities, third-party manufacturing services, or other supplies required by our operations.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward looking terminology, such as "believes," "expects," "may," "are expected to," "should," "would be," "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information - Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2015, as filed with the SEC on March 16, 2016. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed, or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
STMicroelectronics Conference Call and Webcast Information
On April 27, 2016, the management of STMicroelectronics will conduct a conference call to discuss the Company's operating performance for the first quarter of 2016.
The conference call will be held at 9:30 a.m. CET / 8:30 a.m. BST / 3:30 a.m. U.S. Eastern Time (ET) / 12:30 a.m. U.S. Pacific Time (PT). The conference call will be available live via the Internet by accessing http://investors.st.com. Those accessing the webcast should go to the Web site at least 15 minutes prior to the call, in order to register, download and install any necessary audio software. The webcast will be available until May 13, 2016.
About STMicroelectronics
ST is a global semiconductor leader delivering intelligent and energy-efficient products and solutions that power the electronics at the heart of everyday life. ST's products are found everywhere today, and together with our customers, we are enabling smarter driving and smarter factories, cities and homes, along with the next generation of mobile and Internet of Things devices. By getting more from technology to get more from life, ST stands for life.augmented.
In 2015, the Company's net revenues were $6.90 billion, serving more than 100,000 customers worldwide. Further information can be found at www.st.com
For further information, please contact:
INVESTOR RELATIONS:
Tait Sorensen
Group VP, Investor Relations
STMicroelectronics
Tel: +1 602 485 2064
tait.sorensen@st.com
MEDIA RELATIONS:
Nelly Dimey
Director, Corporate Media and Public Relations
Tel: + 33 1 58 07 77 85
nelly.dimey@st.com
| STMicroelectronics N.V. | ||
| Consolidated Statements of Income | ||
| (in millions of U.S. dollars, except per share data ($)) | ||
| Three Months Ended | ||
| (Unaudited) | (Unaudited) | |
| April 02, | March 28, | |
| 2016 | 2015 | |
| Net sales | 1,605 | 1,693 |
| Other revenues | 8 | 12 |
| NET REVENUES | 1,613 | 1,705 |
| Cost of sales | (1,075) | (1,139) |
| GROSS PROFIT | 538 | 566 |
| Selling, general and administrative | (229) | (222) |
| Research and development | (342) | (369) |
| Other income and expenses, net | 28 | 35 |
| Impairment, restructuring charges and other related closure costs | (28) | (29) |
| Total Operating Expenses | (571) | (585) |
| OPERATING LOSS | (33) | (19) |
| Interest expense, net | (5) | (5) |
| Income (loss) on equity-method investments | - | 4 |
| LOSS BEFORE INCOME TAXES | (38) | (20) |
| AND NONCONTROLLING INTEREST | ||
| Income tax expense | (2) | (1) |
| NET LOSS | (40) | (21) |
| Net loss (income) attributable to noncontrolling interest | (1) | (1) |
| NET LOSS ATTRIBUTABLE TO PARENT COMPANY | (41) | (22) |
| EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS | (0.05) | (0.03) |
| EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS | (0.05) | (0.03) |
| NUMBER OF WEIGHTED AVERAGE | ||
| SHARES USED IN CALCULATING | ||
| DILUTED EARNINGS PER SHARE | 878.6 | 874.0 |
| STMicroelectronics N.V. | |||
| CONSOLIDATED BALANCE SHEETS | |||
| As at | April 02, | December 31, | March 28, |
| In millions of U.S. dollars | 2016 | 2015 | 2015 |
| (Unaudited) | (Audited) | (Unaudited) | |
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 1,697 | 1,771 | 1,949 |
| Restricted cash | - | 4 | - |
| Marketable securities | 343 | 335 | 338 |
| Trade accounts receivable, net | 891 | 820 | 971 |
| Inventories | 1,302 | 1,251 | 1,193 |
| Deferred tax assets | 99 | 91 | 96 |
| Assets held for sale | - | 1 | 34 |
| Other current assets | 468 | 407 | 408 |
| Total current assets | 4,800 | 4,680 | 4,989 |
| Goodwill | 79 | 76 | 76 |
| Other intangible assets, net | 162 | 166 | 184 |
| Property, plant and equipment, net | 2,333 | 2,321 | 2,468 |
| Non-current deferred tax assets | 458 | 436 | 385 |
| Long-term investments | 57 | 57 | 58 |
| Other non-current assets | 492 | 459 | 552 |
| 3,581 | 3,515 | 3,723 | |
| Total assets | 8,381 | 8,195 | 8,712 |
| LIABILITIES AND EQUITY | |||
| Current liabilities: | |||
| Short-term debt | 173 | 191 | 200 |
| Trade accounts payable | 666 | 525 | 706 |
| Other payables and accrued liabilities | 692 | 703 | 860 |
| Dividends payable to stockholders | 10 | 97 | 14 |
| Deferred tax liabilities | 4 | 2 | - |
| Accrued income tax | 52 | 42 | 38 |
| Total current liabilities | 1,597 | 1,560 | 1,818 |
| Long-term debt | 1,428 | 1,421 | 1,575 |
| Post-employment benefit obligations | 367 | 351 | 367 |
| Long-term deferred tax liabilities | 11 | 12 | 10 |
| Other long-term liabilities | 161 | 158 | 181 |
| 1,967 | 1,942 | 2,133 | |
| Total liabilities | 3,564 | 3,502 | 3,951 |
| Commitment and contingencies | |||
| Equity | |||
| Parent company stockholders' equity | |||
| Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized, 910,970,920 shares issued, 878,593,740 shares outstanding) | 1,157 | 1,157 | 1,157 |
| Capital surplus | 2,790 | 2,779 | 2,749 |
| Retained earnings | 483 | 525 | 795 |
| Accumulated other comprehensive income | 612 | 460 | 332 |
| Treasury stock | (288) | (289) | (334) |
| Total parent company stockholders' equity | 4,754 | 4,632 | 4,699 |
| Noncontrolling interest | 63 | 61 | 62 |
| Total equity | 4,817 | 4,693 | 4,761 |
| Total liabilities and equity | 8,381 | 8,195 | 8,712 |
| STMicroelectronics N.V. | |||
| SELECTED CASH FLOW DATA | |||
| Cash Flow Data (in US$ millions) | Q1 2016 | Q4 2015 | Q1 2015 |
| Net Cash from operating activities | 141 | 245 | 149 |
| Net Cash used in investing activities | (110) | (98) | (108) |
| Net Cash used in financing activities | (107) | (239) | (102) |
| Net Cash decrease | (74) | (98) | (68) |
| Selected Cash Flow Data (in US$ millions) | Q1 2016 | Q4 2015 | Q1 2015 |
| Depreciation & amortization | 184 | 194 | 175 |
| Net payment for Capital expenditures | (100) | (89) | (89) |
| Dividends paid to stockholders | (88) | (92) | (82) |
| Change in inventories, net | (22) | (11) | 18 |
Appendix
