News Release from: STMicroelectronics
Edited by the Electronicstalk Editorial Team on 11 January 2005
Fourth-quarter revenues show positive signs
STMicroelectronics estimates that net revenues for its 2004 fiscal fourth quarter will be $2328 million, a sequential increase of 4.3% and at the higher end of its previously announced guidance range.
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Based on preliminary data available to date, STMicroelectronics has reported that net revenues for its 2004 fiscal fourth quarter, ended 31st December 2004, are currently estimated to be $2328 million, a sequential increase of 4.3% and at the higher end of its previously announced guidance range of between flat and 5% growth. Based on available preliminary data, gross margin is currently estimated to be approximately 36.6%, compared with the previously announced gross margin guidance range of 38-39%. The company says that currency exchange rates as well as continued pricing pressure and lower than expected manufacturing utilisation and performances at certain fabs contributed to adversely impact the gross margin at the end of the quarter.
The major contributor to the gross margin variance from the earlier guidance was the weakening of the US dollar.
As previously announced, the earlier guidance was based on an average Euro to US dollar exchange rate of $1.23.
The actual quarterly average Euro/dollar exchange rate was approximately $1.27.
Although detailed fourth quarter financial information is not available at this early date, the company believes that SG and A and R and D expenses, as a percentage of sales, will be approximately flat with that of the 2004 third quarter despite the adverse currency impact.
Other Income and Expenses are anticipated to contribute approximately $22 million of income.
The company is in the process of finalising its results for the fourth quarter and performing its internal reviews.
In the course of finalising its financial reporting for the quarter, it will make judgments and estimates and obtain additional information that is not yet available.
The company is therefore not reporting information concerning its fourth quarter results other than updated guidance concerning estimated net revenues, gross margin and certain operating expenses.
ST will report its full fourth quarter and full year 2004 earnings results after the close of the New York Stock Exchange on Wednesday 26th January 2005.
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