STMicroelectronics reported U.S. GAAP financial results for the second quarter ended June 30, 2018. Second quarter net revenues and gross margin were above the mid-point of the Company’s outlook. ST reported second quarter net revenues of $2.27 billion, gross margin of 40.2%, operating margin of 12.7%, and net income of $261 million or $0.29 diluted earnings per share.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG): Revenue grew double-digits, in both Automotive and Power Discrete. Operating profit increased by 28.8% to $84 million, mainly due to higher revenue and associated gross profit. Operating margin increased to 9.7% from 8.7%.
Analog, MEMS and Sensors Group (AMS): Revenue grew double-digits, in both Imaging and in Analog. Operating profit increased by 24.1% to $64 million, mainly due to higher revenue and associated gross profit. Operating margin increased to 10.5% from 9.4%.
Microcontrollers and Digital ICs Group (MDG): Revenue grew double-digits, in both Microcontrollers and Digital ICs. Operating profit increased by 121.6% to $159 million mainly due to higher revenue and associated gross profit. Operating margin increased to 20.3% from 11.7%.
Jean-Marc Chery, STMicroelectronics President & CEO, made the following comments: “ST had another quarter of double-digit, year-over-year revenue growth, with improved performance across key financial metrics. We are on track with the goal set at our Capital Markets Day to grow year-over-year 2018 revenues between about 14% to 17%.
“Revenue increased 18% year-over-year on balanced growth across all product groups, regions and end markets, with an especially strong performance in Industrial.
“Operating income and net income were up sharply year-over-year, increasing respectively about 60% and 73%.
“ST’s third quarter outlook is for revenues to grow sequentially about 10.0%, reflecting year-over-year growth of 16.8%, and gross margin to be about 40.0%. This is driven by continued healthy demand in our end markets and, as anticipated, by growth in smartphone applications.”