STMicroelectronics revenue jumps 20% to $4.25 bn in first-quarter

STMicroelectronics, a global semiconductor company, has reported revenues of $4.25 billion (+19.8 percent), gross margin of 49.7 percent, operating margin of 28.3 percent, and net income of $1.04 billion during the first quarter of 2023.
STMicroelectronics jobSTMicroelectronics has generated first-quarter revenue of $1,807 million (+43.9 percent) from Automotive and Discrete Group (ADG), $1,068 million (–0.9 percent) from Analog, MEMS and Sensors Group (AMS) and $1,368 million (+13.2 percent) from Microcontrollers and Digital ICs Group (MDG).

Capital expenditure payments were $1.09 billion in the first quarter against $0.84 billion in the year-ago period.
STMicroelectronics revenue Q1 2023Inventory at the end of the first quarter was $2.87 billion, compared to $2.15 billion in the year-ago quarter. Days sales of inventory at quarter-end was 122 days compared to 104 days in the year-ago quarter.

STMicroelectronics is targeting to achieve revenues of $4.28 billion, increasing year-over-year by 11.5 percent and increasing sequentially by 0.8 percent; with gross margin of about 49.0 percent in Q2.

ST is aiming for revenue of $17.0 billion to $17.8 billion in 2023 with annual increase of 5-10 percent.

“Demand in the Automotive market and in the Power and Energy portion of the Industrial market remained strong. Factory automation, robotics, and building control grew revenues in line with our strong backlog while new orders normalized,” Jean-Marc Chery, STMicroelectronics President & CEO, said in its earnings report.

“Demand in consumer industrial, communications infrastructure and networking -including data centers and servers- softened; and demand for Personal Electronics and Computer Peripherals further weakened.”

STMicroelectronics plans to invest about $4 billion in Capex in 2023. About 80 percent of the Capex will be to hike 300mm wafer and silicon carbide manufacturing capacity including, for silicon carbide. 20 percent of the Capex will be for R&D, laboratories, manufacturing maintenance and efficiency and corporate sustainability initiatives, STMicroelectronics said.