ST’s Q1 net triples to $170million
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STMicroelectronics has posted its financial results for the first quarter of 2011. The Geneva based company saw net income triple from $57million to $170m year over year, defying supply chain concerns following Japan's earthquake.
First quarter net revenues increased 9% to $2.54billion from $2.33bn in the same quarter last year. Analogue, MEMS and microcontrollers revenues increased 38% year over year with broad contribution from new product ranges. Wireless revenues decreased 34%, however, as sales of ST-Ericsson's legacy products declined more than anticipated.
President and ceo Carlo Bozotti said: "It is clear that our new products are gaining traction and this makes us confident for 2011 as a whole, despite the short term impact to the semiconductor industry's supply chain due to the dramatic events in Japan. Our customer base is rapidly expanding as we are helping our customers to grow and take leadership positions in their businesses."
The company said it expects Q2 revenue to 'evolve sequentially' in the range of -2 to 5%, after taking into account ST-Ericsson's anticipated sequential net sales decline. As a result, gross margin in the second quarter is expected to be about 38.7%.
