|By Marketwired .||
|January 30, 2013 05:58 PM EST||
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.
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
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.
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.
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
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
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
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 26, 2017 12:45 PM EDT Reads: 1,244
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 26, 2017 12:30 PM EDT Reads: 1,076
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 26, 2017 11:00 AM EDT Reads: 2,169
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 26, 2017 10:45 AM EDT Reads: 603
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 26, 2017 10:15 AM EDT Reads: 2,997
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
Mar. 26, 2017 09:30 AM EDT Reads: 4,286
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 26, 2017 09:15 AM EDT Reads: 1,949
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
Mar. 26, 2017 09:00 AM EDT Reads: 3,870
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 26, 2017 08:15 AM EDT Reads: 2,884
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Mar. 26, 2017 08:15 AM EDT Reads: 2,985
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 26, 2017 08:00 AM EDT Reads: 4,163
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 26, 2017 07:15 AM EDT Reads: 1,670
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Mar. 26, 2017 03:30 AM EDT Reads: 3,871
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Mar. 26, 2017 01:45 AM EDT Reads: 3,762
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 26, 2017 12:30 AM EDT Reads: 1,949
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 26, 2017 12:15 AM EDT Reads: 793
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Mar. 26, 2017 12:00 AM EDT Reads: 4,182
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 26, 2017 12:00 AM EDT Reads: 1,778
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 25, 2017 08:45 PM EDT Reads: 6,074
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 25, 2017 08:45 PM EDT Reads: 2,849