SAN JOSE, Calif. — STMicroelectronics Inc. said revenues for the first quarter were $2.3 billion, decreasing 3.7 percent compared to the $2.4 billion reported in last year's first quarter.
Sequentially, net revenues decreased 8.4 percent from the $2.5 billion reported in the prior quarter, largely reflecting lower telecom and consumer sales. Flash memory revenues decreased 13.4 percent sequentially with all other product sales decreasing 7.6 percent.
For the 2007 first quarter, net income totaled $74 million, or $0.08 per diluted share, compared to the prior quarter net income of $276 million or $0.30 per diluted share, and the year-ago quarter where net income totaled $132 million or $0.14 per share. Net results included $12 million of impairment, restructuring charges, and other related closure costs during the 2007 first quarter.
"The trough of the multi-quarter industry correction currently underway appears to be somewhat deeper than we or industry analysts had anticipated,'' said Carlo Bozotti, president and CEO, in a statement. ''Our first quarter sales and operating results were negatively impacted by declines in the wireless and consumer segments, in particular, as well as a tougher overall price environment and an unfavorable product mix within wireless. As we manage through this period of correction, factory loadings have adversely affected gross margin."
ST (Geneva) continues to move towards a fab-lite model. "First, we continue our focus on cash flow and a lighter asset model for ST,'' he said. ''We are decreasing our capital intensity, as evidenced by our first quarter capital expenditures of $285 million, representing a 26 percent reduction from the prior quarter.''
The outlook remains mixed. "Specifically, we expect sequential sales growth in the range between 4 percent and 10 percent,'' he said.