Home > News > Bozotti tenure at ST ends on high note with revenues up 19.7%
Bozotti tenure at ST ends on high note with revenues up 19.7%
Release on :2018-01-29
ST ended Carlo Bozotti’s final year as CEO on a high note, with Q4 net revenues of $2.47 billion, up 15.5% sequentially, gross margin of 40.6%, operating income of $408 million, operating margin of 16.5%, 2017 full-year net revenues up 19.7% y-o-y at $8.35 billion, 2017 net income of $802 million and free cash flow of $338 million.
“ST delivered a strong finish to 2017. Fourth quarter net revenues were up 32.6% year-over-year with double-digit growth across all product groups, gross margin reached 40.6%, and operating margin was at 16.5%,” says Bozotti, “on a sequential basis, fourth quarter revenues grew significantly better than seasonal at 15.5% mainly thanks to higher than expected revenues in Imaging products and Microcontrollers.
“Full Year 2017 net revenues increased 19.7% on strong growth across all product groups and geographies; gross margin expanded 400 basis points, operating margin increased 880 basis points to 11.9% and net income improved by $637 million to $802 million,” adds Bozotti.
Net revenues for the full year 2017 increased 19.7% to $8.35 billion from $6.97 billion in 2016.
Analogue, MEMS and Sensors Group (AMS) revenues were up 41.4% on the year on triple-digit growth in Imaging and strong growth in both Analogue and MEMS.
Microcontrollers and Digital ICs Group (MDG) revenues increased 15.8% on the year compared to 2016 on strong growth in general purpose microcontrollers partially offset by lower revenues for products undergoing phase-out.
Automotive and Discrete Group (ADG) revenues increased 8.8% for the full year of 2017 compared to the full year of 2016 on growth in both Automotive and Discrete.
Full year 2017 gross profit was $3.27 billion. Gross margin improved to 39.2% from 35.2% 2016. The 2017 gross margin benefited from manufacturing efficiencies, better product mix, and improved fab loading partially offset by pricing pressures.
ST’s net financial position was $489 million at December 31, 2017 compared to $446 million at September 30, 2017.
At December 31, 2017, ST’s total financial resources were $2.19 billion; total financial debt was $1.70 billion; and total equity, including non-controlling interest, was $5.47 billion.
“We continue to see solid demand across product groups and geographies and in the first quarter we anticipate a better than seasonal trend for Smart Driving and Internet of Things applications, and the unfavourable seasonal dynamics for smartphone applications,” says Bozotti, “based upon that, as well as our much stronger than expected revenue growth in the previous quarter, we anticipate first quarter revenues to decrease by about 10% on a sequential basis. We expect the gross margin to decrease to about 39.5% at the mid-point. We expect to invest this year approximately $1.0 to $1.1 billion.”
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