STMicroelectronics reported financial results for the second quarter and first half ended July 1, 2017 including: Second quarter net revenues of $1.92 billion, up 5.6% sequentially and 12.9% year-over-year; Second quarter gross margin of 38.3%, up 70 basis points sequentially driving operating margin before impairment and restructuring to 9.6%; Second quarter net income was $151 million, or $0.17 per share; and First half net revenues of $3.74 billion, net income of $258 million, free cash flow of $113 million.
"It was another solid quarter, with both net revenues and gross margin sequentially performing better than seasonality and above the mid-point of our guidance," commented Carlo Bozotti, STMicroelectronics President and CEO.
"On a year-over-year basis, revenue growth came from all product groups and sales channels. In Internet of Things and smartphones, we continue to win with our complete portfolio of microcontrollers, sensors, analog and power management, connectivity and security solutions. In Smart Driving, we continue to capture opportunities both with products developed in our Automotive and Discrete Group, as well as from the rest of our organization which fit the needs of our automotive customers, such as sensors and general purpose analog.
"On top of our sales initiatives, during the quarter we improved our profitability thanks to our operating leverage, better product mix and manufacturing efficiencies driving our operating margin before impairment and restructuring to 9.6% in the second quarter.
"To strengthen our capital structure and further enhance our financial flexibility, in July we raised $1.5 billion at an overall zero cost, through a convertible bond offering. Additionally, the combination of the net share settlement option and the on-going repurchase of the underlying shares implies substantially no dilution at conversion to shareholders,” concluded Bozotti.