Wed, Apr. 27, 3:05 PM
- Though STMicroelectronics (STM +11.1%) missed Q1 estimates, it's guiding for Q2 revenue to be up 5.5% Q/Q (+/- 3.5%). That implies revenue of $1.7B at the midpoint, slightly above a $1.69B consensus and going over well given low expectations.
- Automotive and discrete group (ADG) chip revenue fell fractionally Y/Y in Q1 to $671M. Analog/MEMS revenue fell 17% to $369M. Microcontrollers and digital ICs group revenue (MDG, includes a set-top chip business STMicro is ending product R&D for) rose fractionally to $532M. The company notes automotive and microcontroller sales grew.
- In spite of a 5% revenue drop, gross margin rose 20 bps Y/Y to 33.4%; Q2 GM guidance is at 34% (+/- 2%). Job cuts helped operating expenses drop 2% to $571M. STMicro ended Q1 with $2.04B in cash/investments and $1.6B in debt.
- STMicro rallied yesterday ahead of earnings following good numbers from rival/European chip peer NXP. Bloomberg reported a couple weeks ago STMicro is looking for a successor to CEO Carlo Bozotti.
- STMicro's Q1 results, earnings release
Wed, Apr. 27, 9:11 AM
Wed, Apr. 27, 3:21 AM
Tue, Apr. 26, 5:30 PM
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Tue, Apr. 26, 2:06 PM
- NXP (NXPI +4.6%) is at its highest levels since December after beating Q1 estimates and issuing solid Q2 guidance - revenue of $2.295B-$2.395B and EPS of $1.30-$1.40 vs. a consensus of $2.34B and $1.32. Rival/European chip peer STMicroelectronics (STM +3.3%) is also doing well.
- Boosting Q1 EPS: Gross margin was 50%, down 20 bps Q/Q but up 150 bps Y/Y. Q2 GM guidance is at 49.5%-50.5%.
- Top-line performance: When adjusted for the Freescale acquisition, NXP's revenue (pressured by a chip industry inventory correction) rose 2% Q/Q and fell 11% Y/Y in Q1. Automotive revenue rose 1% Y/Y to $795M, Secure ID Solutions (includes smart card/EMV chips) fell 5% to $222M, Secure Connected Devices (inc. microcontrollers and NFC chips, hurt by soft Apple orders) fell 10% to $525M, and Secure Interface & Infrastructure (includes Freescale network processors and RF amplifiers) fell 25% to $564M.
- Fab utilization was at 90% in Q1. $298M was spent to buy back 4.1M shares. Thanks partly to the Freescale deal, NXP ended Q1 with $1.5B in cash and $9B in debt.
- CEO Richard Clemmer: "[O]ur year on year revenue trends reflect the semiconductor industry weakness that accelerated throughout the second half of 2015, and affected both NXP and Freescale ... We believe we have begun to see incremental positive trends in a number of our businesses ... While we anticipate many of the headwinds experienced in the second half of 2015 should begin to generally subside in the coming quarters, the overall demand environment currently continues to be subdued." On the earnings call, NXP said automotive chip sales are expected to rise by a mid-to-high single digit Q/Q % in Q2.
- NXP's Q1 results, earnings release
Fri, Apr. 15, 12:53 AM
- Bloomberg reports STMicroelectronics (NYSE:STM) is looking to find a successor to CEO Carlo Bozotti. The process is said to still be informal and part of normal succession planning.
- Bozotti, who turns 65 next year, reportedly won't extend his contract, but could be involved in training a replacement. Meanwhile, the French government wants STMicro to abandon its tradition of having an Italian CEO, and be willing to consider external hires.
- The French and Italian governments each own 27.5% of the embattled chipmaker, which in January announced it's cutting 1,400 jobs and ending R&D work for its set-top and home gateway IC lines.
Tue, Apr. 5, 5:37 PM
Fri, Apr. 1, 5:39 PM
Mon, Feb. 8, 12:29 PM
- Chipmakers NXP (NXPI -9.3%) and STMicroelectronics (STM -5.6%), CPU/GPU core developer ARM (ARMH -5.5%), and ad tech firm Criteo (CRTO -9%) are down sharply after European indices closed with big losses. France's CAC-40 fell 3.4%, Germany's DAX 3.3%, and the Euro Stoxx 50 3.3%. The Nasdaq is down 2.1%, and the S&P 1.8%.
- NXP has more than given back the Thursday gains seen after the company posted a Q4 beat and issued in-line Q1 guidance. Today's losses come in spite of an OTR Global note stating NXP could gain NFC chip share with Samsung's Galaxy S7 relative to the S6; the S6 heavily relied on Samsung NFC radios.
- STMicro is two weeks removed from announcing (with its Q4 report) job cuts and plans to discontinue set-top/home gateway chip R&D. ARM and Criteo report on Wednesday morning.
Tue, Feb. 2, 2:42 PM
- On a day the Nasdaq is down 2.1%, many chip stocks are seeing outsized losses (SOXX -3.1%) after IDT (IDTI -28.3%), a mixed-signal chipmaker selling into the server, networking/telecom infrastructure, and wireless charging markets (among others), offered soft FQ4 (calendar Q1) guidance to go with an FQ3 sales beat.
- Major decliners include diversified European chipmakers NXP (NXPI -4.7%) and STMicroelectronics (STM -7%), microcontroller maker Cypress Semi (CY -6.9%), RF chipmaker Qorvo (QRVO -6.4%), motion sensor developer InvenSense (INVN -6%), chip packaging/testing firm Amkor (AMKR -6.1%), and analog/mixed-signal chipmakers MagnaChip (MX -9.8%), Inphi (IPHI -9.1%), Silicon Labs (SLAB -5%), Microsemi (MSCC -4.4%), Semtech (SMTC -5.4%), and Power Integrations (POWI -5.5%). Previously covered: Pixelworks, ON Semi.
- IDT reported Chinese telecom infrastructure demand is "normalizing to slightly less than the peak levels seen in late calendar 2014," that data center customer growth rates have slowed slightly, and that consumer demand has been affected by increased "customer smartphone shipment volatility." Both Apple and Samsung's sales have been under pressure.
- BofA/Merrill has downgraded IDT to Neutral, while Wedbush's Betsy Van Hees has gone contrarian and upgraded to Outperform. Van Hees argues IDT is still positioned to see strong FY17 growth, aided by the ramp of LRDIMM DRAM chipsets for Intel's Broadwell server CPU launch and the ramp of wireless charging IC programs at tier-1 OEMs.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Jan. 27, 10:24 AM
- Along with its Q4 results, Q1 guidance, and restructuring plans, STMicroelectronics (STM +4%) says it's cutting 1,400 jobs - 430 in France through a voluntary departure plan, 670 in Asia, and 120 in the U.S. The company expects $170M/year in savings and $170M in restructuring costs.
- Along with the job cuts, STMicro says it's discontinuing "the development of new platforms and standard products" for its set-top and home gateway IC lines. 600 employees will be redployed from the company's set-top chip ops to "support principally ST's growth ambitions in digital automotive and microcontrollers."
- STMicro: "The slower than expected market adoption of leading-edge products and increasing competition on low-end [set-top] boxes, combined with the required high level of R&D investment, has led this business to generate significant losses in the course of the last years." Broadcom (BRCM -0.1%), which is due to officially be acquired by Avago (AVGO -3.1%) on Feb. 1, has been STMicro's top rival in the set-top/home gateway IC space, and stands to benefit from STMicro's move.
- The French government has responded to the news by stating STMicro needs a new strategy. Spokesman Stephane Le Foll: "We want a new strategy put in place to allow this company to create value and recover."
- STMicro continues trading higher post-earnings. Avago is joining other iPhone/iPad suppliers in selling off following Apple's earnings/guidance. the Nasdaq is down 1.2%.
Wed, Jan. 27, 9:22 AM
Wed, Jan. 27, 9:22 AM
- In addition to slightly beating Q4 sales estimates (while slightly missing on EPS), STMicroelectronics (NYSE:STM) is guiding for Q1 revenue to be down 3% Q/Q (+/- 3.5%). At the midpoint, that implies revenue of $1.62B, above a $1.61B consensus. That's going over well in light of low expectations - STMicro sold off in October after providing weak Q4 guidance partly blamed on China, and other chipmakers have also seen top-line pressures.
- STMicro also discloses it has restructured into three business units (each reporting to CEO Carlo Bozotti) to "align with the company's strategic focus on Smart Driving and on Internet of Things applications": An Automotive & Discrete Group, a Microcontrollers & Digital ICs Group, and an Analog & MEMS Group.
- Carmelo Papa, previously the head of STMicro's Industrial & Power Group, is retiring. Also: COO Jean-Marc Chery is now in charge of the company's Technology & Manufacturing organization.
- Product line performance: Analog & MEMS chip sales (possibly hurt by Apple share loss) -22% Y/Y in Q4 to $207M. Automotive -6% to $408M. Industrial & Power Discrete -15% to $392M. Digital Product Group (affected by set-top weakness and the ST-Ericsson wind-down) -18% to $212M. Microcontroller, Memory & Secure MCU +14% to $442M.
- Financials: Gross margin was 33.5%, -130 bps Q/Q and -30 bps Y/Y; Q1 GM guidance is at 33% (+/- 2%). SG&A spend fell by $4M Y/Y to $231M; R&D spend fell by $24M to $352M. STMicro ended Q4 with $2.1B in cash/investments and $1.6B in debt.
- Shares have risen to $6.80 premarket.
- STMicro's Q4 results, earnings release
Wed, Jan. 27, 1:31 AM
- STMicroelectronics (NYSE:STM): Q4 EPS of $0.00 misses by $0.01.
- Revenue of $1.67B (-8.7% Y/Y) beats by $10M.
Tue, Jan. 26, 5:30 PM
Nov. 11, 2015, 5:37 PM
- "Our priority is No. 1: growth, and No. 2: resolve the problem in our digital products group," said Carlo Bozotti at a Morgan Stanley conference talk. Though he wouldn't rule out the possibility of STMicroelectronics (NYSE:STM) engaging in M&A in the future, he declared it's "not on the table today."
- A long list of peers, including microcontroller rivals such as NXP, Freescale, Infineon, and Microchip, have been party to large mergers or acquisitions. Bozotti recently denied STMicro is interested in analog chipmaker Fairchild, after a report to the effect popped up.
- Bozotti also suggested the industry inventory correction that contributed to STMicro's weak Q4 guidance could continue into Q1. "We did not expect such a material correction of inventory in the fourth quarter and maybe first quarter of next year ... Frankly in the last few weeks it (the global semiconductor market) was not that great."
STMicroelectronics NV designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices. It develops products for a wide range of market applications, including automotive products, computer peripherals, telecommunications systems, consumer... More
Industry: Semiconductor - Broad Line
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