Welcome!

Microsoft Cloud Authors: Liz McMillan, John Basso, Pat Romanski, Elizabeth White, Mihai Corbuleac

News Feed Item

ST-Ericsson reports fourth quarter 2012 financial results

GENEVA, SWITZERLAND -- (Marketwire) -- 01/30/13 --


* Net sales $358 million, in line with outlook

* Adjusted operating loss(1)) $133 million, 55% improvement since Q1 2012

* NovaThor™ shipments grew 45% sequentially

Geneva, Switzerland, January 30, 2013 - ST-Ericsson, a joint venture of STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), reported financial results for the fourth fiscal quarter ending December 31, 2012.

Sales in the fourth quarter were approximately flat sequentially, in line with the guidance provided, reflecting growing contribution from NovaThor platform shipments as well as $43 million revenues from IP licensing. NovaThor ModAp shipments grew by 45% sequentially to 10.7 million units.

Adjusted operating loss decreased to $133 million as a further result of the execution of the strategic plan announced in April. Since the first quarter 2012 operating losses have been reduced by 55%, decreasing by $164 million.

Didier Lamouche, President and CEO, commented: "The fourth quarter was again a quarter of solid execution for us with revenues coming in as expected and a major growth of the shipments of our NovaThor platform, in part thanks to the new Samsung GALAXY S III mini. We have continued to execute steadily and aggressively on our strategy and delivered on our commitments to improve our financial results, further reducing our losses and controlling expenses. However, we recognize that the level of losses and use of cash remains very high."

Samples of ST-Ericsson's first LTE ModAp products became available in December and the first NovaThor L8580 ModAp platform based on STMicroelectronics' advanced 28nm FD-SOI process was demonstrated on January 7 at CES.

"We are also continuing to execute relentlessly against our committed roadmap," continued Lamouche. "We have reached key maturity milestones with our advanced LTE modem which is in testing with customers and is anticipated to be commercialized as part of our NovaThor L8540 ModAp platform in 2013. As promised less than a year ago we also unveiled our newest chipset - the NovaThor L8580 ModAp - which is the first product to use FD-SOI technology and is the world's fastest and lowest power integrated LTE modem and application processor platform, 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)
---------------------------------------------------------------------------

Additional financial information

During the fourth quarter Ericsson and ST waived their credit of $1546 million under the parents' loan.

Non-GAAP net income in the fourth quarter 2012 was $71 million, including gain from the debt forgiveness, impairment of intangible assets and write off of certain deferred tax assets.

The net financial position(2) )at the end of the fourth quarter was positive $37 million, reflecting the cancellation of the parents' loan facility.

Inventory decreased by $33 million reaching $147 million at the end of the fourth quarter. Net operating cash flow decreased slightly, reaching a negative $152 million.

The fourth quarter 2012 closing is based on a going concern assumption. In the month of December 2012 ST-Ericsson shareholders issued press releases about their future intent with respect to ST-Ericsson. Following the uncertainty resulting from these announcements we cannot exclude that the ST-Ericsson Financial Statements could be further negatively affected by ST-Ericsson's future scenario.

Outlook

For the first quarter 2013, ST-Ericsson expects a very significant sequential decline in net sales, mainly resulting, in addition to the first quarter seasonality, from a combination of no revenues from licensing expected in the quarter and further weakening of legacy product sales.


Highlights - Recent products, technology and wins
* Products
  * Samples of ST-Ericsson's first FD-SOI product became available in
    December and the NovaThor L8580 ModAp platform was announced on January
    7, 2013. The NovaThor L8580 ModAp is a multimode LTE-enabled integrated
    smartphone platform which features an eQuad-powered application
    processor running at up to 2.5Ghz and includes a full connectivity
    suite.
* Customers
  * Samsung GALAXY S III mini is powered by an ST-Ericsson NovaThor ModAp,
    making it the fourth Samsung smartphone using the NovaThor platform.
* Partners/technology
  * With the new NovaThor L8580 ModAp ST-Ericsson introduced eQuad
    technology. eQuad is a CPU architecture in which each processor core
    can operate as an industry-leading high performance core or a very
    low-power core for less computing-intensive tasks running at 0.6V.
    This is achieved by transistor-level electrical bias switching to allow
    each of two physical cores to run in two different modes, creating an
    electrically-enabled quad core. The eQuad processor delivers both the
    fastest processor speed at 2.5Ghz as well as by far the industry
    leading power efficiency with cores running at 1Ghz at only 0.65V.
  * ST-Ericsson tested and demonstrated its VoLTE (Voice over LTE)
    technology with key operators during the quarter. A white paper was
    published discussing VoLTE battery life and the benefits to be expected
    in upcoming modem generations such as ST-Ericsson solutions.
  * ST-Ericsson published a white paper on IMS Fusion. Through the
    invention of IMS Fusion, ST-Ericsson makes it possible for mobile
    devices to support an arbitrary number of downloaded or pre-installed
    IMS apps. This solves the problem of multiple IMS registrations without
    the need for a new modem API.
  * ST-Ericsson announced that it is ready to support Jolla's Sailfish OS
    in its NovaThor platforms.

Financial results appendix (unaudited)

Annual financial results
                                                    2012             2011
 $ million                                         ACTUAL           ACTUAL

 Income Statement *

 NET SALES                                           1351             1650

 OPERATING INCOME/(LOSS) ADJUSTED(1)) for:           (814)            (732)



 - amortization of acquisition-related intangibles    (75)            (101)

 - restructuring charges                              (89)             (34)

 OPERATING INCOME / (LOSS) as reported               (978)            (867)

 NON-GAAP NET INCOME / (LOSS)                        (749)**          (841)


--------------------------------------------------------------------------
2012  financial results by quarter
 $ million                                 Q4 2012 Q3 2012 Q2 2012 Q1 2012

 Income Statement *

 NET SALES                                     358     359     344     290

 OPERATING INCOME/(LOSS) ADJUSTED(1)) for:    (133)   (148)   (235)   (297)

 - amortization of acquisition-related
 intangibles                                   (19)    (19)    (19)    (19)

 - restructuring charges                       (17)     (7)    (56)    (10)

 OPERATING INCOME / (LOSS) as reported        (169)   (174)   (309)   (326)

 NON-GAAP NET INCOME / (LOSS)                  71**   (190)   (318)   (312)
---------------------------------------------------------------------------
* 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

Consolidated balance sheet *
 In $ million                        December 31, 2012 December 31, 2011


 ASSETS

   Current assets:

   Cash and cash equivalents                        37                9

   Trade accounts receivable, net                   35               97

   Inventories, net                                147              223

   Deferred tax assets                               1                8

   Other receivables and assets                     90              102
                                                  ---------------------
   Total current assets                            309              439



   Goodwill                                          0              745

   Other intangible assets, net                     12              437

   Property, plant and equipment, net              286              364

   Long-term deferred tax assets                     8              188

   Other investments and other non-current assets   44               70
                                                  ---------------------
                                                   349            1,804

   Total assets                                    659            2,243
                                                  ---------------------



 LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:

  Short-term borrowings and current
  portion of long-term debt                          0              807

  Trade accounts payable                           155              175

  Other payables and accrued
  liabilities                                      253              292

  Deferred tax liabilities                           0                0

  Accrued income tax                                 6                8
                                                  ---------------------
  Total current liabilities                        414            1,282


    Reserve for pension and
 termination indemnities                            85               87

    Long-term deferred tax
 liabilities                                         0                3

    Other non-current liabilities                   29               25
                                                  ---------------------
                                                   114              115

    Total liabilities                              528            1,397


    Total equity                                   131              846
                                                  ---------------------
    Total equity and liabilities                   659            2,243
                                                  ---------------------

  ------------------------------------------------
* Please refer to footnote n. 4 on page 6

Footnotes

1) The adjusted operating income/(loss) is defined as the operating income/(loss) reported before amortization of acquisition-related intangibles and restructuring charges and is used by management to help enhance the understanding of ongoing operations and to communicate the impact of the items on the operating loss as reported.

2) Net financial position represents the balance between financial assets, which comprise cash, cash equivalents and short-term deposits, and financial debt which includes bank overdrafts and parent companies short-term bridge credit facilities.

3) Net operating cash flow is defined as net cash from operating activities, less capital expenditure and less restructuring charges.

4) The fourth quarter 2012 closing is based on a going concern assumption. The valuation of several items in the financial report is based upon our best estimate using preliminary information available to us and under this going concern assumption. In the month of December 2012 ST-Ericsson' shareholders issued press releases about their future intent with respect to ST- Ericsson, on December 10(th) by STMicroelectronics and on December 20(th) by Ericsson.

Following the uncertainty resulting from these announcements, the carrying amounts of goodwill and intangible assets have been substantially impaired. We cannot exclude that the ST-Ericsson Financial Statements could be further negatively affected by ST-Ericsson's future scenario.

Notes to editors

ST-Ericsson invites journalists, analysts and investors to a conference call scheduled on January 31 at 5 p.m. CET. Call-in numbers, a live webcast of the conference call, as well as supporting slides, will be available at www.stericsson.com/investors/investors.jsp.

About ST-Ericsson

ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with headquarters in Geneva, Switzerland.

www.stericsson.com

www.twitter.com/STEricssonForum


The ST-Ericsson results reported in this press release do not reflect in their entirety the results of the Wireless Segment of STMicroelectronics, which include other activities that are not part of ST-Ericsson.

###

This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward- looking statements. For a detailed description of risk factors see STMicroelectronics' (NYSE: STM) and Ericsson's (NASDAQ: ERIC) filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F.

Forward looking statements contained in this press release and the fourth quarter 2012 closing are based on a going concern assumption. In the month of December 2012 ST-Ericsson' shareholders issued press releases about their future intent with respect to ST-Ericsson, on December 10(th) by STMicroelectronics and on December 20(th) by Ericsson. Please read this press release in conjunction with this information.

Fourth Quarter 2012 financial results: http://hugin.info/1061/R/1674392/545192.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE [HUG#1674392]

FOR FURTHER INFORMATION, PLEASE CONTACT:
Global Communications & Media
Relations
Claudia Levo, Geneva, Switzerland

Investor & Analyst Relations
Fabrizio Rossini, Geneva, Switzerland
Phone: +41 22 929 6973
Email: Email Contact

Pamela McCracken, Santa Clara, U.S.A.
Phone: +1 408 398 8565
Email: Email Contact

Ericsson Investor Relations
Asa Konnbjer, Stockholm, Sweden
Phone: +46 10 713 3928
E-mail:
Email Contact

STMicroelectronics Investor Relations
Tait Sorensen, Phoenix AZ, US
Phone: +1 602 485 2064

Celine Berthier, Geneva, Switzerland
Phone: +41 22 929 5812
Email: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.