ST Q2 net revenues up 27% year on year

ST's net revenues for the second quarter of 2010 totaled $2,531million and included sales recorded by ST-Ericsson as consolidated by ST. Net revenues increased 8.9% sequentially, although the company's wireless segment decreased by 10.5%. President and ceo Carlo Bozotti said: "Obviously, we are not satisfied with the results in wireless. However, we are encouraged by ST-Ericsson's progress in achieving key design wins as well as restructuring, towards a progressive recovery." Year-on-year, all market segments, except telecom, posted growth with automotive increasing by 48%, industrial by 43%, consumer by 42% and computer by 23%. Telecom declined by 3%. Distribution, increased 81%, reflecting continued strong global demand. Gross margin in the second quarter of 2010 was 38.3%, 60 basis points higher than the 37.7% reported in the first quarter of 2010. ST cited the success to manufacturing efficiencies and product innovation. Bozotti concluded: "Innovative products continue to drive revenue momentum. In the second quarter, several new product areas, including advanced 55nm set top box solutions that offer our customers top performance at low power and leading edge functionality, such as 3d graphics and 3d video; 32bit microcontrollers; as well as power and analogue grew significantly."