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STMicroelectronics N.V. (STMN.MX)

Mexico - Mexico Delayed price. Currency in MXN
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678.000.00 (0.00%)
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52-week range465.00 - 22,516.90
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Avg. volume12
Market cap11.121B
Beta (5Y monthly)1.29
PE ratio (TTM)2,290.54
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yield140.11 (0.62%)
Ex-dividend date13 Apr 2020
1y target estN/A
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  • STMicroelectronics Reports 2020 Third Quarter Financial Results
    GlobeNewswire

    STMicroelectronics Reports 2020 Third Quarter Financial Results

    * Q3 net revenues $2.67 billion; gross margin 36.0%; operating margin 12.3%; net income $242 million * YTD net revenues $6.98 billion; gross margin 36.3%; operating margin 9.5%; net income $525 million * Business outlook at mid-point: Q4 net revenues $2.99 billion and gross margin of 38.5%Geneva, October 22, 2020 - STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended September 26, 2020. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).ST reported third quarter net revenues of $2.67 billion, gross margin of 36.0%, operating margin of 12.3%, and net income of $242 million or $0.26 diluted earnings per share.Jean-Marc Chery, STMicroelectronics President & CEO, commented: * “As we announced on October 1, 2020, our Q320 net revenues increased 27.8% sequentially, coming in 690 basis points above the high end of our outlook range. This revenue performance was due to significantly better than expected market conditions throughout the quarter. Demand for Automotive products, our engaged customer programs in Personal Electronics, as well as Microcontrollers, were the main factors that contributed to this result. Third quarter gross margin came in at the mid-point of our range, and includes about 140 basis points of unsaturation charges. * “Looking at the fourth quarter, we expect sequential revenue growth of about 12.0% at the mid-point. All product groups are expected to grow, except the RF Communications sub-group. Our gross margin is expected to be about 38.5%, including about 70 basis points of unsaturation charges. * “For the full year 2020, we now expect net revenues at the mid-point to be about $9.97 billion, translating into 4.3% year-over-year growth, with a double-digit operating margin performance.”Quarterly Financial Summary (U.S. GAAP)(US$ m, except per share data) Q3 2020 Q2 2020 Q3 2019 Q/Q Y/Y Net Revenues $2,666 $2,087 $2,553 27.8% 4.4% Gross Profit $959 $730 $967 31.5% -0.8% Gross Margin 36.0% 35.0% 37.9% 100 bps -190 bps Operating Income $329 $106 $336 208.8% -2.0% Operating Margin 12.3% 5.1% 13.1% 720 bps -80 bps Net Income $242 $90 $302 169.1% -19.6% Diluted Earnings Per Share $0.26 $0.10 $0.34 160.0% -23.5% Third Quarter 2020 Summary ReviewNet Revenues By Product Group (US$ m) Q3 2020 Q2 2020 Q3 2019 Q/Q Y/Y Automotive and Discrete Group (ADG) 851 727 894 17.1% -4.9% Analog, MEMS and Sensors Group (AMS) 997 624 968 59.8% 3.0% Microcontrollers and Digital ICs Group (MDG) 815 733 688 11.2% 18.6% Others 3 3 3 \- \- Total Net Revenues 2,666 2,087 2,553 27.8% 4.4%   Net revenues totaled $2.67 billion, representing a year-over-year increase of 4.4%. On a year-over-year basis, the Company recorded higher sales in Microcontrollers, RF Communications, MEMS and Analog, partially offset by lower sales in Automotive, Imaging and Power Discrete. Year-over-year sales to OEMs increased 7.5%, offset in part by a decrease of 3.4% to Distribution. On a sequential basis, net revenues increased 27.8%, 690 basis points above the high-end of the Company’s guidance. All product groups reported double-digit increases in revenues on a sequential basis. Gross profit totaled $959 million, representing a year-over-year decrease of 0.8%. Gross margin of 36.0% decreased 190 basis points year-over-year, mainly due to price pressure and unsaturation charges. Third quarter gross margin was aligned with the mid-point of the Company’s guidance.Operating income decreased 2.0% to $329 million, compared to $336 million in the year-ago quarter. The Company’s operating margin decreased 80 basis points on a year-over-year basis to 12.3% of net revenues, compared to 13.1% in the 2019 third quarter. By product group, compared with the year-ago quarter:Automotive and Discrete Group (ADG):  * Revenue decreased in both Automotive and in Power Discrete. * Operating profit decreased by 35.7% to $49 million. Operating margin was 5.8% compared to 8.5%.Analog, MEMS and Sensors Group (AMS): * Revenue increased in MEMS and Analog and decreased in Imaging. * Operating profit decreased by 11.8% to $175 million. Operating margin was 17.5% compared to 20.5%.Microcontrollers and Digital ICs Group (MDG): * Revenue increased in both Microcontrollers and in RF Communications (former “Digital” sub-group). * Operating profit increased by 32.0% to $142 million. Operating margin was 17.4% compared to 15.7%.Unused capacity charges are included under the group “Others”.Net income and diluted earnings per share decreased to $242 million and $0.26, respectively, compared to $302 million and $0.34, respectively, in the year-ago quarter. Cash Flow and Balance Sheet Highlights        Trailing 12 Months (US$ m) Q3 2020 Q2 2020 Q3 2019 Q3 2020 Q3 2019 TTM Change Net cash from operating activities 385 387 429 1,946 1,749 11.3% Free cash flow (non-U.S. GAAP) (25) 28 170 577 399 44.6% Capital expenditure payments, net of proceeds from sales, were $319 million in the third quarter and $897 million for the year-to-date period. In the year-ago quarter, capital expenditures, net, were $244 million. Inventory at the end of the third quarter was $1.93 billion, up from $1.79 billion in the prior year quarter. Day sales of inventory at quarter-end was 103 days compared to 100 days in the prior year quarter. After the cash outflow of $76 million for acquisitions to further strengthen the Company’s wireless connectivity capabilities, and $33 million of accreted interest paid to settle the 2022 Tranche A of the convertible bond issued in 2017, free cash flow (non-U.S. GAAP) was negative $25 million in the third quarter, compared to positive $170 million in the year-ago quarter.In the third quarter, the Company paid cash dividends totaling $38 million.ST’s net financial position (non-U.S. GAAP) was $662 million at September 26, 2020 compared to $570 million at June 27, 2020 and reflected total liquidity of $3.53 billion and total financial debt of $2.87 billion. During the quarter, ST exercised the call option for the early redemption of its 2022 Tranche A of the convertible bond issued in 2017. As a consequence, bondholders exercised their conversion rights on the total of $750 million of the Tranche A bond. ST net settled the bond, mostly in the third quarter with the remaining small portion at the beginning of Q4, by delivering $750 million in cash and about 11 million shares from treasury shares. Simultaneously with the exercise of the call option, ST issued a new $1.5 billion dual-tranche senior unsecured convertible bond (Tranche A and Tranche B for $750 million each) due 2025 and 2027.Business OutlookThe Company’s guidance, at the mid-point, for the 2020 fourth quarter is: * Net revenues are expected to be $2.99 billion, an increase of 12.0% sequentially, plus or minus 350 basis points; * Gross margin of about 38.5%, plus or minus 200 basis points; * This outlook is based on an assumed effective currency exchange rate of approximately $1.15 = €1.00 for the 2020 fourth quarter and includes the impact of existing hedging contracts. * The fourth quarter will close on December 31, 2020.Conference Call and Webcast InformationSTMicroelectronics will conduct a conference call with analysts, investors and reporters to discuss its third quarter 2020 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, http://investors.st.com, and will be available for replay until November 6, 2020.Use of Supplemental Non-U.S. GAAP Financial InformationThis press release contains supplemental non-U.S. GAAP financial information.Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies.See the Appendix of this press release for a reconciliation of the Company’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with U.S. GAAP.Forward-looking Information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those anticipated by such statements, due to, among other factors: * changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products; * uncertain macro-economic and industry trends, which may impact end-market demand for our products; * customer demand that differs from projections; * the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; * changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macroeconomic or regional events, military conflicts, social unrest, labor actions, or terrorist activities; * unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding; * the Brexit vote and the impact of the withdrawal of the U.K. may adversely affect business activity, political stability and economic conditions in the U.K., the Eurozone, the EU and elsewhere. The U.K. withdrawal from the EU took place on January 31, 2020 and the UK majority government is expected to complete Brexit even if no formal withdrawal agreement is in place with the EU by the end of the transition period running until December 31, 2020. The specific terms of the U.K. withdrawal from the EU are still uncertain and while we do not have material operations in the U.K. and have not experienced any material impact from Brexit on our underlying business to date, we cannot predict its future implications; * financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; * the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third party manufacturing providers; * availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations; * the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers or suppliers; * theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of global and local privacy legislation, including the EU’s General Data Protection Regulation (“GDPR”); * the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; * changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; * variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; * the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; * product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; * natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics such as the COVID-19 in locations where we, our customers or our suppliers operate; * industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; and * the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third party components and performance of subcontractors in line with our expectations.Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward looking terminology, such as “believes,” “expects,” “may,” “are expected to,” “should,” “would be,” “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2019, as filed with the SEC on February 26, 2020. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed, or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.About STMicroelectronicsAt ST, we are 46,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An independent device manufacturer, we work with our 100,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and 5G technology. Further information can be found at www.st.com.For further information, please contact:INVESTOR RELATIONS: Céline Berthier Group VP, Investor Relations Tel: +41 22 929 58 12 celine.berthier@st.comMEDIA RELATIONS: Alexis Breton Head of Corporate External Communications Tel: +33 6 59 16 79 08 alexis.breton@st.comSTMicroelectronics N.V.     CONSOLIDATED STATEMENTS OF INCOME     (in millions of U.S. dollars, except per share data ($))             Three months ended   September 26, September 28,   2020 2019   (Unaudited) (Unaudited)       Net sales                      2,663                    2,547 Other revenues                             3                           6 NET REVENUES                      2,666                    2,553 Cost of sales                    (1,707)                   (1,586) GROSS PROFIT                         959                       967 Selling, general and administrative                       (273)                      (267) Research and development                       (379)                      (362) Other income and expenses, net                           24                          (2) Impairment, restructuring charges and other related closure costs                           (2)                            - Total operating expenses                       (630)                      (631) OPERATING INCOME                         329                       336 Interest expense, net                           (9)                          (1) Other components of pension benefit costs                           (2)                          (5) Income (loss) on equity-method investments                             1                            - Loss on financial instruments, net                         (26)                            - INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST                         293                       330 Income tax expense                         (50)                        (28) NET INCOME                         243                       302 Net income attributable to noncontrolling interest                           (1)                            - NET INCOME ATTRIBUTABLE TO PARENT COMPANY                         242                       302       EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS                        0.27                      0.34 EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS                        0.26                      0.34       NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 921.5 900.1       STMicroelectronics N.V.     CONSOLIDATED STATEMENTS OF INCOME     (in millions of U.S. dollars, except per share data ($))             Nine months ended   September 26, September 28,   2020 2019   (Unaudited) (Unaudited)       Net sales                      6,975                    6,779 Other revenues                             9                         23 NET REVENUES                      6,984                    6,802 Cost of sales                    (4,449)                   (4,187) GROSS PROFIT                      2,535                    2,615 Selling, general and administrative                       (802)                      (808) Research and development                    (1,126)                   (1,111) Other income and expenses, net                           71                         49 Impairment, restructuring charges and other related closure costs                         (12)                          (2) Total operating expenses                    (1,869)                   (1,872) OPERATING INCOME                         666                       743 Interest income (expense), net                         (12)                           2 Other components of pension benefit costs                           (8)                        (12) Income (loss) on equity-method investments                             1                           1 Loss on financial instruments, net                         (26)                            - INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST                         621                       734 Income tax expense                         (96)                        (93) NET INCOME                         525                       641 Net income attributable to noncontrolling interest                             -                          (1) NET INCOME ATTRIBUTABLE TO PARENT COMPANY                         525                       640       EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS                        0.59                      0.71 EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS                        0.57                      0.71       NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 916.4 901.6               STMicroelectronics N.V.       CONSOLIDATED BALANCE SHEETS       As at September 26, June 27, December 31, In millions of U.S. dollars 2020 2020 2019   (Unaudited) (Unaudited) (Audited) ASSETS       Current assets:       Cash and cash equivalents 2,714 1,800 2,597 Restricted cash \- \- 10 Short-term deposits 679 687 4 Marketable securities 134 134 133 Trade accounts receivable, net 1,433 1,171 1,380 Inventories 1,931 1,963 1,691 Other current assets 504 448 442 Total current assets 7,395 6,203 6,257 Goodwill 321 197 162 Other intangible assets, net 422 312 299 Property, plant and equipment, net 4,312 4,194 4,007 Non-current deferred tax assets 726 710 695 Long-term investments 10 11 11 Other non-current assets 580 535 437   6,371 5,959 5,611 Total assets 13,766 12,162 11,868         LIABILITIES AND EQUITY       Current liabilities:       Short-term debt 983 879 173 Trade accounts payable 1,091 1,079 950 Other payables and accrued liabilities 865 829 831 Dividends payable to stockholders 82 119 58 Accrued income tax 105 69 52 Total current liabilities 3,126 2,975 2,064 Long-term debt 1,882 1,172 1,899 Post-employment benefit obligations 464 447 445 Long-term deferred tax liabilities 80 38 19 Other long-term liabilities 470 339 330   2,896 1,996 2,693 Total liabilities 6,022 4,971 4,757 Commitment and contingencies       Equity       Parent company stockholders' equity       Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized, 911,239,420 shares issued, 903,184,398 shares outstanding) 1,157 1,157 1,157 Capital surplus 3,057 3,061 2,992 Retained earnings 3,019 2,797 2,747 Accumulated other comprehensive income 576 481 475 Treasury stock (133) (372) (328) Total parent company stockholders' equity 7,676 7,124 7,043 Noncontrolling interest 68 67 68 Total equity 7,744 7,191 7,111 Total liabilities and equity 13,766 12,162 11,868                 STMicroelectronics N.V.               SELECTED CASH FLOW DATA               Cash Flow Data (in US$ millions) Q3 2020 Q2 2020 Q3 2019         Net Cash from operating activities                      385                      387                      429 Net Cash used in investing activities                    (400)                    (509)                      (59) Net Cash from (used in) financing activities                      928                    (117)                    (129) Net Cash increase (decrease)                      914                    (238)                      226         Selected Cash Flow Data (in US$ millions) Q3 2020 Q2 2020 Q3 2019         Depreciation & amortization                      234 223 216 Net payment for Capital expenditures                    (319)                    (312)                    (244) Dividends paid to stockholders                      (38)                      (37)                      (54) Change in inventories, net                        60                    (175)                        77         Appendix STMicroelectronics Supplemental Financial Information  Q3  2020 Q2  2020 Q1  2020 Q4  2019 Q3  2019 Net Revenues By Market Channel (%)           Total OEM 74% 66% 75% 72% 72% Distribution 26% 34% 25% 28% 28%             €/$ Effective Rate 1.13 1.10 1.11 1.12 1.14             Product Group Data (US$ m)           Automotive & Discrete Group (ADG)            - Net Revenues 851 727 753 924 894  - Operating Income 49 16 23 113 76 Analog, MEMS & Sensors Group (AMS)            - Net Revenues 997 624 852 1,085 968  - Operating Income 175 56 177 281 198 Microcontrollers & Digital ICs Group (MDG)            - Net Revenues 815 733 623 742 688  - Operating Income 142 117 71 119 108 Others (a)            \- Net Revenues 3 3 3 3 3  \- Operating Income (Loss) (37) (83) (40) (53) (46) Total            \- Net Revenues 2,666 2,087 2,231 2,754 2,553  \- Operating Income 329 106 231 460 336   1. Net revenues of Others includes revenues from sales assembly services and other revenue. Operating income (loss) of Others includes items such as unused capacity charges, including reduced manufacturing activity due to COVID-19, impairment, restructuring charges and other related closure costs, management reorganization costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. Others includes:  (US$ m) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Unused Capacity Charges 38 64 34 29 28 Impairment & Restructuring Charges 2 4 5 3 - (Appendix – continued) STMicroelectronics Supplemental Non-U.S. GAAP Financial Information U. S. GAAP – Non-U.S. GAAP ReconciliationThe supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. The Company believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with the Company’s U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results, (ii) the ability to better identify trends in the Company’s business and perform related trend analysis, and (iii)  to facilitate a comparison of the Company’s results of operations against investor and analyst financial models and valuations, which may exclude these items.Net Financial Position (non-U.S. GAAP measure)Net Financial Position, not a U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total financial resources include cash and cash equivalents, marketable securities, restricted cash and short-term deposits, and our total financial debt includes short-term debt, including bank overdrafts, and long-term debt, as represented in our Consolidated Balance Sheets. We believe our Net Financial Position provides useful information for investors and management because it gives evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, short-term deposits and marketable securities and the total level of our financial indebtedness. In addition, our definition of Net Financial Position may differ from definitions used by other companies and therefore comparability may be limited.(US$ m) Sep 26 2020 Jun 27 2020 Mar 28 2020 Dec 31 2019 Sep 28 2019 Cash and cash equivalents 2,714 1,800 2,028 2,597 2,345 Restricted cash \- \- 10 10 60 Short term deposits 679 687 537 4 \- Marketable securities 134 134 135 133 133 Total liquidity 3,527 2,621 2,710 2,744 2,538 Short-term debt (983)(2) (879)(1) (171) (173) (171) Long-term debt(3) (1,882) (1,172) (1,871) (1,899) (2,019) Total financial debt (2,865) (2,051) (2,042) (2,072) (2,190) Net Financial Position 662 570 668 672 348     1. 2022 Tranche A of the convertible bond issued in 2017 was reclassified to short-term debt in line with contractual terms. 2. 2024 Tranche B of the convertible bond issued in 2017 was reclassified to short-term debt in line with contractual terms. 3. Long-term debt contains standard conditions but does not impose minimum financial ratios. Also, committed credit facilities for $1.2 billion equivalent, including a €500 million long-term line with the European Investment Bank, are currently undrawn. (Appendix – continued) STMicroelectronicsFree Cash Flow (non-U.S. GAAP measure)Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) net cash used in investing activities, excluding payment for purchases of (and proceeds from matured) marketable securities and net investment in short-term deposits, which are considered as temporary financial investments. The result of this definition is ultimately net cash from operating activities plus payment for purchase and proceeds from sale of tangible, intangible and financial assets, proceeds received in the sale of businesses and cash paid for business acquisitions. We believe Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates. In addition, our definition of Free Cash Flow may differ from definitions used by other companies.(US$ m) Q3  2020 Q2  2020 Q1  2020 Q4  2019 Q3  2019 Net cash from operating activities 385 387 399 775 429 Net cash used in investing activities (400) (509) (821) (314) (59) Payment for purchase of (and proceeds from matured) marketable securities and net investment in short-term deposits (10) 150 535 \-   (200) Free Cash Flow (25) 28 113 461 170 Attachment * C2972C- Q320 PR-FINAL FOR PUBLICATION

  • First Multi-Zone Time-of-Flight Sensor Headlines STMicroelectronics Technology Powering Samsung Flagship Galaxy Note20 Ultra Phones
    GlobeNewswire

    First Multi-Zone Time-of-Flight Sensor Headlines STMicroelectronics Technology Powering Samsung Flagship Galaxy Note20 Ultra Phones

    First Multi-Zone Time-of-Flight Sensor Headlines STMicroelectronics Technology Powering Samsung Flagship Galaxy Note20 Ultra Phones * Feature-packed large-screen smartphone applies multi-zone direct Time-of-Flight sensor and other ST MEMS1 and EEPROMs2 for exceptional camera performance  * Lowest-noise, lowest power-consumption sensors with highest-quality software assure outstanding user experience Geneva, Switzerland, October 21, 2020 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, revealed that the newly unveiled Samsung Galaxy Note20 Ultra uses top-notch ST sensing and control technology, enhancing the smartphones’ high-end features while squeezing every watt from the power budget with minimal noise and package size. The Galaxy Note20 similarly leverages ST’s MEMS pressure sensors, inertial measurement units, and EEPROMs. With camera performance and user experience becoming more and more important in consumers’ choice of their personal communication devices, the Galaxy Note20 Ultra, and the Galaxy Note20, have placed strong emphasis on capturing images and video in stunning sharpness and detail. Samsung’s accent on managing performance and power efficiency led them to select ST’s newest low-power 6-axis MEMS Inertial Measurement Unit (IMU) and EEPROM with outstanding low-power performance. An ST MEMS barometric pressure sensor measures the atmospheric pressure as well as the user altitude and can enable precise fitness tracking and many other applications where vertical detection is important. In addition, to provide ultra-fast and accurate focusing for complex scenes where enhanced camera performance is required, Samsung added ST’s groundbreaking FlightSenseTM Time-of-Flight sensor, the world’s first, multi-zone all-in-one module, to the Note20 Ultra. Another key feature, the S Pen stylus in the Note 20 series embeds an ST 6-axis IMU for quick gesture detection and interpretation. The ultra-low-power ST device includes ST’s unique Machine Learning logic to simplify the analysis of the gesture interpretation for almost latency free responsiveness and precision.Enabling these new features through their low-noise, low-power design, ST’s IMU and pressure sensor also efficiently perform standard Android OS features. These include detecting device orientation, steps, tilt, motion, and air pressure. “Samsung’s commitment to low power and high performance, evident in its Galaxy Note20 and Galaxy Note20 Ultra, contributes to pushing us to maximize performance and power efficiency in all of our products,” said Marco Cassis, President, Sales, Marketing, Communications and Strategy Development, STMicroelectronics. “Our broad portfolio of sensors, along with EEPROM memory, power, and other devices, offers an outstanding range of options to best optimize performance and power.”About STMicroelectronics At ST, we are 46,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An independent device manufacturer, we work with our 100,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and 5G technology. Further information can be found at www.st.com.For Press Information Contact: Michael Markowitz Director Technical Media Relations STMicroelectronics Tel: +1 781 591 0354 Email: michael.markowitz@st.com 1 MEMS = Micro-Electro-Mechanical Systems 2 EEPROM = Electrically Erasable Programmable Read-Only Memory Attachment * T4281D -- Oct 21 2020 -- ST components in Samsung Galaxy Note20_FINAL FOR PUBLICATION

  • STMicroelectronics Unveils Features of Multi-Application, Deterministic Automotive Microcontrollers to Maximize Safety and Security in Next-Generation Domain/Zone Architectures
    GlobeNewswire

    STMicroelectronics Unveils Features of Multi-Application, Deterministic Automotive Microcontrollers to Maximize Safety and Security in Next-Generation Domain/Zone Architectures

    P4269A -- Oct 20 2020 -- Stellar MCU Update_IMAGE STMicroelectronics Unveils Features of Multi-Application, Deterministic Automotive Microcontrollers to Maximize Safety and Security in Next-Generation Domain/Zone Architectures * ST jointly developed with Bosch deterministic high-performance open-market MCUs that can host multiple applications including virtualization of safety and security by HW functionality   * New approach enables integration of multiple applications developed with different tooling and on different software schedules, in contrast to today’s Linux/Posix-based integration-platform solutions   * Non-volatile Phase-Change Memory (PCM) supports safety by delivering single-bit overwrite capability and very effective Over-the-Air updates with no downtimeGeneva, Switzerland, October 20, 2020 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, has revealed further details of its innovative Stellar automotive microcontrollers (MCUs) to show how the devices ensure reliable and deterministic execution of multiple independent real-time applications. This is one of the toughest challenges facing manufacturers in today’s automotive sector as the complexity of new car architectures leads to the consolidation of independent applications into a single powerful Integration MCU and typically involves choosing either determinism or virtualization. Stellar delivers both. Pioneering this new class of controllers, Stellar Integration MCUs are designed with exceptional computing power to significantly simplify the concurrent and deterministic execution of multiple-sourced software while guaranteeing the highest levels of safety and performance. These capabilities meet system requirements in the electrics/electronics (E/E) architecture of the next generation of connected cars. To do this, Stellar introduces features that include a state-of-the-art processor with hardware support for virtualization, quality of service settings, the ability to firewall peripherals, and perform resource separation at interconnect levels. These features allow independent applications, or Virtual ECUs, to coexist in the same physical MCU by guaranteeing freedom from interference and secure compartmentalization of software functions while supporting concurrent multiple ASIL safety levels.ST has developed this new technology with Bosch, the well-known tier-one automotive electronic module supplier, to meet future OEM integration demands.We have set up Stellar’s functionality to cover integration challenges, while maintaining isolation and compartmentalization,” said Axel Aue, Vice President, Bosch. “The computing performance for this kind of system is outstanding, with Phase Change Memory performance equal to, or surpassing, that of alternative Flash technologies. Moreover, Stellar’s performance concerning Firmware Updates Over-the-Air (FOTA) has been flawless with zero down time and zero recovery time.”“We designed Stellar to meet the demands of future Domain/Zone architectures and service-oriented communication needs, setting aggressive real-time performance, safety, and determinism goals,” said Luca Rodeschini, Strategy & Automotive Processors and RF Division General Manager, STMicroelectronics. “The setup, evaluations and validations performed by Bosch now provide expert confirmation, showing that our teams’ integration of outstanding real-time performance, embedded PCM non-volatile memory, and comprehensive virtualization ensure efficient software isolation and compartmentalization that will add to consumers’ safety and convenience in their vehicles.”Further Technical InformationStellar embeds multiple Arm® Cortex®-R52 cores — some operating in lockstep and some in Split/Lock – and features a 2-level Memory Protection Unit and a low-latency Generic Interrupt Controller. The MCU is suited to hard real-time applications up to the highest safety integrity level, ASIL-D, specified in the automotive functional-safety standard, ISO 26262. There are also multiple powerful accelerators for secure data routing, processing, and mathematical functions, with advanced security support and extensive communication command and control.The Integration MCU offers a comprehensive virtualization at multiple levels using a Virtual Machine ID (VMID) at the network-on-chip and memory levels. Firewalls ensure complete separation at all interconnect levels including the peripherals. These firewalls allow Stellar to manage Virtual Machines (VMs) accesses and privileges to peripherals, ensuring the isolation of entire mission-critical functions. With its unique architecture and hardware-based virtualization capabilities, Stellar assures safety through freedom from interference. It also provides significant advantages over software virtualization, including offloading of processor cores and reducing virtualization’s impact on memory.At the same time, Stellar manages increasing software complexity and integration with better utilization of its hardware resources. This reduces total overhead of multiple separate ECUs performing their own housekeeping and managing communication-stack-related latency. In fact, Stellar can support several real-time operating systems (OSes) running independently, without interference. These OSes can separately manage applications with different functional-safety levels and superior processing capabilities for encrypted communication over Ethernet or CAN1 buses with dedicated AES2 accelerators to offload the main Hardware Security Modules (HSM) for MACSec3, IPSec4, and CAN authentication.Stellar Integration MCUs feature non-volatile Phase-Change Memory (PCM), offering fast read access times, and single-bit alterability that is not available in Flash memory. PCM ensures Over-The-Air (OTA) updates with zero down time, even for full-sized memory updates. In addition to increasing flexibility and erase/write cycles, single-bit alterability at runtime (no erase required) extends safety setup by refreshing bits to eliminate single-bit failures and extend the memory’s lifetime.ST’s embedded-PCM technology has been developed and tested to operate within the most stringent automotive requirements for robust high-temperature operation, radiation hardening, cycling and data retention. ePCM achieves automotive requirements for AEC-Q100 Grade 0 with an operating temperature up to +165°C.To date, ST has delivered more than 3000 samples to customers and samples have been running in vehicles for about a year. For additional information, please contact ST sales. About STMicroelectronics At ST, we are 46,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An independent device manufacturer, we work with our 100,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and 5G technology. Further information can be found at www.st.com.For Press Information Contact: Michael Markowitz Director Technical Media Relations STMicroelectronics Tel: +1 781 591 0354 Email: michael.markowitz@st.com 1 Controller Area Network 2 Advanced Encryption Standard 3 Media Access Controller (MAC) Security 4 Internet Protocol Security Attachments * P4269A -- Oct 20 2020 -- Stellar MCU Update_FINAL FOR PUBLICATION * P4269A -- Oct 20 2020 -- Stellar MCU Update_IMAGE