Welcome!

Agile Computing Authors: Leon Adato, Harry Trott, Automic Blog, Liz McMillan, Angsuman Dutta

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
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, 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. Me...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...