Sees Q3 net revenue 3.25 bln usd, down 26.7% yr/yr (Il Sole 24 Ore Radiocor) - Paris, 25 Jul - Franco-Italian chip maker STMicroelectronics said that in the second quarter net revenue came in at 3.232 billion euros compared with 3.465 billion in the first three months of 2024 and 4.326 billion a year ago with a rise in Personal Electronics offsetting lower than expected revenue in Automotive.

First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments.

During the quarter, contrary to prior expectations, customer orders for Industrial did not improve and Automotive demand declined.

The gross margin fell to 40.1% from 41.7% in the first quarter and 49% a year ago but was in line with the company's expectations. Operating profit fell to 375 million dollars from 551 million in the first quarter and 1.146 billion a year ago. Diluted earnings per share slipped to 0.38 dollars from 0.54 dollars in the prior three months and 1.06 dollars a year ago.

In the third quarter, the company expects revenue to come in at 3.25 billion dollars, down an annual 26.7% and up a sequential 0.6% with a gross margin around 38% impacted by about 350 basis points of unused capacity charges.

In the full year, it expects revenue of 13.2-13.7 billion dollars with a gross margin of about 40%.

AAA-Sch

(RADIOCOR) 25-07-24 08:09:54 (0114) 5 NNNN