- The gross margin of 38.8 per cent, operating margin of 20.3 per cent, and net income of $582 million or $0.63 diluted earnings per share
- For 2021, The company plans to invest about $1.8 billion to $2.0 billion in CAPEX to support the strong market demand and strategic initiatives
STMicroelectronics announced net revenues of $3.24 billion for the fourth quarter ended 31st December 2020. It also declared gross margin of 38.8 per cent, operating margin of 20.3 per cent, and net income of $582 million or $0.63 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented, As we announced on January 8, 2021, our Q420 net revenues increased 21.3 per cent sequentially, 580 basis points above the high end of our outlook range. Our engaged customer programs in Personal Electronics, as well as continuous acceleration in demand, especially of Automotive products and Microcontrollers, were the main factors that contributed to this result.
Full year revenues increased 6.9 per cent to $10.22 billion
He added, “Fourth quarter gross margin was 30 basis points above the mid-point of our outlook range. On a sequential basis, our operating margin was up 800 basis points to 20.3 per cent and free cash flow increased to $512 million.
He also said that based upon a stronger than expected second half of 2020, full year revenues increased 6.9 per cent to $10.22 billion, with an operating margin of 12.9 per cent. He added that ST’s first quarter outlook, at the mid-point, is for net revenues of $2.93 billion, increasing year-over-year by 31.2 per cent and decreasing sequentially by 9.5 per cent; gross margin is expected to be about 38.5 per cent.
He said, “For 2021, we plan to invest about $1.8 billion to $2.0 billion in CAPEX to support the strong market demand and our strategic initiatives.”
