STMicroelectronics has announced its financial results for the second quarter and first half ending June 29, 2013. The second quarter net revenues of ST totalled $2.05 billion and gross margin was found to be 32.8%. On the other hand, the net loss attributable to ST was $152 million.
Carlo Bozotti, President & CE, STMicroelectronics, said, "In the second quarter, we saw sequential progress towards our objectives of sales growth, gross margin improvement and expense reduction. Sales were in line with our guidance, despite an accelerated decline of ST-Ericsson’s existing product revenues. Gross margin came in above the midpoint of our guidance due to manufacturing efficiencies and increased volumes. Our quarterly operating expense run rate continues to decrease substantially both on a sequential and year-over-year basis."
Net revenues increased 1.8% sequentially and decreased 4.8% on a year-over-year basis. ST's second quarter revenues increased 6.8% on a sequential basis and 3.6% on a YoY basis. The second quarter operating expenses excluding restructuring charges were $736 million – down from $808 million and $887 million in the sequential and year-ago periods, respectively
The second quarter gross profit was $672 million and gross margin was 32.8%. R&D expenses were $453 million representing a sequential decrease of$80 million or 15%. R&D expenses declined by 27% compared to the year-ago period.
For Q2 2013, the average exchange rate for the company was approximately $1.30 to €1.00 compared to $1.31 to €1.00 for the first quarter of 2013 and $1.32 to €1.00 for the second quarter of 2012.
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