Net Revenues Increased over 35 Percent

STMicroelectronics reported first quarter net revenues of $3.02 billion. This represents an increase of more than 35 per cent compared to the first quarter of 2020. Net profit increased even more.

STMicroelectronics reported first quarter gross margin of 39.0%; operating margin of 14.6% and net income of $364 million. Jean-Marc Chery, STMicroelectronics President & CEO, commented: »In the first quarter of 2021, net revenues increased 35.2% year-over-year. All product groups contributed to this growth, on continued acceleration of demand globally. Operating margin improved 420 basis points to 14.6% and net income increased 89.6% to $364 million. On a sequential basis, net revenues decreased 6.8%, 270 basis points above the mid-point of our outlook. Automotive and Power Discrete products and Microcontrollers increased sequentially, partially offset by Personal Electronics products.«

Chery: »ST’s second quarter outlook, at the mid-point, is for net revenues of $2.9 billion, increasing year-over-year by 39%, and decreasing sequentially by 3.8% due to usual seasonality in Personal Electronics; gross margin is expected to be about 39.5%. We will drive the Company based on a plan for FY21 revenues of $12.1 billion, plus or minus $150 million, a year-over-year increase of 18.4% at the mid-point. This growth is expected to be driven by strong dynamics in all end markets we address and our engaged customer programs. For 2021, we now plan to invest about $2.0 billion in CAPEX to support the strong market demand and our strategic initiatives.«