- The company plans to invest about $1.5 billion in CAPEX in 2020
- It has a mid-term revenue ambition of $12 billion
Semiconductor company STMicroelectronics reported net revenue of $2.75 billion for the fourth quarter ended 31st December 2019. The company’s gross margin stood at 39.3 per cent and operating margin is at 16.7 per cent. The company reported a net income of $392 million or $0.43 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics president and CEO said, “We closed 2019 with a solid fourth quarter sales and financial performance. Net revenues grew 7.9 per cent sequentially, above the mid-point of our guidance of 5.0 per cent, with all product groups contributing to the growth. Our gross margin was 39.3 per cent, 110 basis points higher than the mid-point of our guidance, mainly due to better than expected manufacturing efficiencies and improved product mix. On a sequential basis, our operating margin was up 360 basis points to 16.7 per cent and free cash flow increased to $461 million in the fourth quarter.”
Invest about $1.5 billion in CAPEX in 2020
He added that the company plans to invest about $1.5 billion in CAPEX in 2020. This will be done to support the company’s strategic initiatives and revenue growth to move towards mid-term revenue ambition of $12 billion.
Chery further commented, “ST’s first quarter outlook, at the mid-point, is for net revenues of $2.36 billion, increasing year-overyear by 13.7 per cent and decreasing sequentially by 14.3 per cent, gross margin is expected to be 38.0 per cent, including about 80 basis points of unsaturation charges.”
