“ST had another quarter of solid performance, with sequential revenue growth of 11.2%, above our 10% midpoint outlook, and operating margin expansion to 15.8,” said Jean-Marc Chery, STMicroelectronics president and CEO. “Revenue increased 18.1% year-over-year driven by strong growth in Imaging, Power Discrete and Automotive products. Operating income and net income were up sharply year-over-year and sequentially.”
Net revenues increased 11.2% sequentially, 120 basis points better than the mid-point of the company’s guidance. On a year-over-year basis, third quarter net revenues increased 18.1% with all product groups delivering revenue growth. Year-over-year sales to OEMs and Distribution were up 21.6% and 11.2%, respectively.
Gross profit totaled $1.0 billion, representing a year-over-year increase of 18.6%. Gross margin was 39.8%, 20 basis points lower than the mid-point of the company’s guidance mainly due to product group mix. Operating income was $398 million, compared to $281 million in the year-ago quarter.