Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

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
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.