GENEVA, SWITZERLAND -- (Marketwire) -- 01/30/13 --
* Net sales $358 million, in line with outlook
* Adjusted operating loss(1)) $133 million, 55% improvement since Q12012
* NovaThor™ shipments grew 45% sequentially
Geneva, Switzerland, January 30, 2013 - ST-Ericsson, a joint ventureofSTMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), reportedfinancialresults for the fourth fiscal quarter ending December 31, 2012.
Sales in the fourth quarter were approximately flat sequentially, in linewiththe guidance provided, reflecting growing contribution from NovaThorplatformshipments as well as $43 million revenues from IP licensing. NovaThorModApshipments grew by 45% sequentially to 10.7 million units.
Adjusted operating loss decreased to $133 million as a further resultof theexecution of the strategic plan announced in April. Since the firstquarter2012 operating losses have been reduced by 55%, decreasing by $164 million.
Didier Lamouche, President and CEO, commented: "The fourth quarter wasagain aquarter of solid execution for us with revenues coming in as expectedand amajor growth of the shipments of our NovaThor platform, in part thanksto thenew Samsung GALAXY S III mini. We have continued to executesteadily andaggressively on our strategy and delivered on our commitments toimprove ourfinancial results, further reducing our losses and controllingexpenses.However, we recognize that the level of losses and use of cash remainsveryhigh."
Samples of ST-Ericsson's first LTE ModAp products became available inDecemberand the first NovaThor L8580 ModAp platform based onSTMicroelectronics'advanced 28nm FD-SOI process was demonstrated on January 7 at CES.
"We are also continuing to execute relentlessly against our committedroadmap,"continued Lamouche. "We have reached key maturity milestones with ouradvancedLTE modem which is in testing with customers and is anticipatedto becommercialized as part of our NovaThor L8540 ModAp platform in 2013. Aspromisedless than a year ago we also unveiled our newest chipset - the NovaThorL8580ModAp - which is the first product to use FD-SOI technology and is theworld'sfastest and lowest power integrated LTE modem and applicationprocessorplatform, confirming the disruptive nature of FD-SOI technology."
2012 fourth quarter financial summary (unaudited) $ million Q4 2012 Q3 2012 Q4 2011 Income Statement* NET SALES 358 359 409 OPERATING INCOME/(LOSS) ADJUSTED(1)) for: (133) (148) (207) - amortization of acquisition-related intangibles (19) (19) (25) - restructuring charges (17) (7) (9) OPERATING INCOME / (LOSS) as reported (169) (174) (241) NON-GAAP NET INCOME /(LOSS) 71** (190) (231)--------------------------------------------------------------------------* Please refer to footnote n. 4 on page 6** Includes $1531 million gain from shareholders' debt forgiveness and $1060 million charges for impairment of goodwill and intangible assets$ million Q4 2012 Q3 2012 Q4 2011 Additional financial data Net Financial Position Cash, cash equivalents & short-term deposits/debt, net 37 39 9 Parent companies short-term debt 0 (1390) (807) Net financial position 2) 37 (1351) (798) Net operating cash flow 3) (152) (146) (204)---------------------------------------------------------------------------
