January 23, 2012, 23:17 (CET) Download:
- Net sales $409 million
Adjusted operating loss[1] $207 million
Key priorities for 2012: enhanced focus on execution and a clear roadmap to sustainable profitability
Geneva, Switzerland, January 23, 2012 -
Sales in the fourth quarter, excluding IP licensing to a third party, grew 1.3% over prior quarter. The operating loss reported for the fourth quarter was higher than the previous quarter.
Didier Lamouche, President and CEO, commented: "As the recently appointed CEO of ST-Ericsson, my aim, and that of the entire organization, will be to ensure that we meet all of our stakeholders' expectations. As we ramp up our new product portfolio and build a strong roadmap towards sustainable profitability, our focus is to effectively deliver on timely execution of our strategic programs and continue to proliferate design wins.
From a financial perspective, it is clear that both sales and operating results will continue to be challenging over the coming quarters, due to the reduction in the short term of new product sales with one of our largest customers. That is why our immediate priority is to build a strong roadmap to profitability based on enhancing execution, delivering in volume our leading products and lowering the break-even point."
2011 fourth quarter financial summary (unaudited)
$ million | Q4 2011 | Q3 2011 | Q4 2010 |
Income Statement | |||
NET SALES | 409 | 412 | 577 |
OPERATING INCOME/(LOSS) ADJUSTED[1] for: | (207) | (194) | (119) |
- amortization of acquisition-related intangibles | (25) | (25) | (28) |
- restructuring charges | (9) | (5) | (24) |
OPERATING INCOME / (LOSS) as reported | (241) | (224) | (171) |
NET INCOME / (LOSS) | (231) | (211) | (177) |
$ million | Q4 2011 | Q3 2011 | Q4 2010 |
Additional financial data Net Financial Position | |||
Cash, cash equivalents & short-term deposits/debt, net | 2 | 20 | 68 |
Parent companies short-term debt | (800) | (614) | (150) |
Net financial position[2] Cash flow from operations |
(798) (182) |
(594) (149) |
(82) (101) |
Additional financial information
The net financial position[2]at the end of the fourth
quarter was negative $798 million. The sequential decrease
was mainly a consequence of the operating loss, partially
mitigated by the reduction of working capital. Our
shareholders will continue to support funding our
transitional financial needs.
During the fourth quarter the company sold trade receivables without recourse, of which $144 million were outstanding at the end of the quarter, representing a sequential decline of $18 million.
Inventory decreased by $58 million reaching $223 million at the end of the fourth quarter.
Outlook
For the first quarter 2012, ST-Ericsson expects a very
significant sequential decline in net sales, resulting from
a combination of higher inventory at some of our customers,
further weakening of legacy product sales, the effect of
first quarter seasonality as well as the reduction, in the
short term, of new product sales with one of our largest
customers.
Highlights - products, technology and wins announced in fourth quarter 2011
Products
The ST-Ericsson Thor(TM) M7400 modem was selected as a Consumer Electronics Show Innovations 2012 Design and Engineering Awards honoree in the Embedded Technologies product category.
Customers
Sharp announced three new smartphones in Japan that are based on the ST-Ericsson Thor(TM) HSPA+ 21 Mbps thin modem.
Nokia has selected the ST-Ericsson NovaThor(TM) platform for future devices it plans to introduce based on the Windows Phone mobile platform.
The Motorola Atrix(TM) 2, launched in October, uses the ST-Ericsson Thor HSPA+ 21 Mbps thin modem.
Partners/technology
ST-Ericsson, in conjunction with STMicroelectronics, announced their involvement in the European VENTURI Project, a group of companies that will work together to develop mobile device platforms and applications that deliver fully-immersive mobile Augmented Reality experiences.
ST-Ericsson and CEA-Leti, working with STMicroelectronics and Cadence Design Systems, have developed WIOMING, a three layer stack of multi-core system on chip (SoC) devices connected by the same network on chip (NoC). A proof of concept for a 3D multiprocessor architecture, the WIOMING 3D stack uses Wide I/Os to connect the SoC devices and a DRAM memory chip.
Financial results appendix (unaudited)
Annual financial results
$ million |
2011 ACTUAL |
2010 ACTUAL |
Income Statement | ||
NET SALES | 1650 | 2293 |
OPERATING INCOME/(LOSS) ADJUSTED[1] for: | (732) | (436) |
- amortization of acquisition-related intangibles | (101) | (101) |
- restructuring charges | (34) | (74) |
OPERATING INCOME / (LOSS) as reported | (867) | (611) |
NET INCOME / (LOSS) | (841) | (591) |
2011 financial results by quarter
$ million | Q4 2011 | Q3 2011 | Q2 2011 | Q1 2011 |
Income Statement | ||||
NET SALES | 409 | 412 | 385 | 444 |
OPERATING INCOME/(LOSS) ADJUSTED[1] for: | (207) | (194) | (181) | (149) |
- amortization of acquisition-related intangibles | (25) | (25) | (25) | (25) |
- restructuring charges | (9) | (5) | (15) | (4) |
OPERATING INCOME / (LOSS) as reported | (241) | (224) | (222) | (178) |
NET INCOME / (LOSS) | (231) | (211) | (221) | (178) |
Consolidated balance sheet
In $ million | December 31, 2011 | December 31, 2010 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 9 | 68 | |
Trade accounts receivable, net | 97 | 121 | |
Inventories, net | 223 | 275 | |
Deferred tax assets | 8 | 11 | |
Other receivables and assets | 102 | 125 | |
Total current assets | 439 | 600 | |
Goodwill | 745 | 749 | |
Other intangible assets, net | 437 | 524 | |
Property, plant and equipment, net | 364 | 424 | |
Long-term deferred tax assets | 188 | 120 | |
Other investments and other non-current assets | 70 | 81 | |
1,804 | 1,898 | ||
Total assets | 2,243 | 2,498 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term borrowings and current portion of long-term debt | 807 | 150 | |
Trade accounts payable | 175 | 241 | |
Other payables and accrued liabilities | 292 | 274 | |
Deferred tax liabilities | 0 | 5 | |
Accrued income tax | 8 | 4 | |
Total current liabilities | 1,282 | 673 | |
Reserve for pension and termination indemnities | 87 | 51 | |
Long-term deferred tax liabilities | 3 | 5 | |
Other non-current liabilities | 25 | 31 | |
115 | 88 | ||
Total liabilities | 1,397 | 761 | |
Total equity | 846 | 1,737 | |
Total equity and liabilities | 2,243 | 2,498 | |
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.
Notes to editors
ST-Ericsson invites journalists, analysts and investors to
a conference call scheduled on January 24 at 5pm CET.
Call-in numbers, a live webcast of the conference call, as
well as supporting slides, will be available at .
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. The company is a
leading supplier to the top handset manufacturers and
generated sales of $1.7 billion in 2011. 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.
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: investor.relations@stericsson.com |
Pamela McCracken, Santa Clara, U.S.A. Phone: +1 408 398 8565 Email: media.relations@stericsson.com | |
Ericsson Investor Relations Asa Konnbjer, Stockholm, Sweden Phone: +46 10 713 3928 E-mail: investor.relations@ericsson.com |
STMicroelectronics Investor Relations Tait Sorensen, Phoenix AZ, US Phone: +1 602 485 2064 Celine Berthier, Geneva, Switzerland Phone: +41 22 929 5812 Email: investors@st.com |
###
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.
distribué par | Ce noodl a été diffusé par Telefonaktiebolaget LM Ericsson et initialement mise en ligne sur le site http://www.ericsson.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-24 07:22:53 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |