Despite Smartphones, STMicroelectronics grows in 2018
29 April, 2018
“Despite the weak demand we are experiencing for smartphones in the first half of 2018, we anticipate second quarter and first half revenues to grow year-over-year about 17.5% and 19.8%, respectively"
The weakness of the Smartphone market in the beginning of 2018 is expected to hit the major semiconductors suppliers, but some found a way to overcome what seems to be a flat year in the most vibrant market of the industry. STMicroelectronics, for example, admitted its Smartphone business were hit, but nevertheless it reported a strong 2018 Q1 results.
“Despite the weak demand we are experiencing for smartphones in the first half of 2018, we anticipate second quarter and first half revenues to grow year-over-year about 17.5% and 19.8%, respectively, commented Carlo Bozotti, STMicroelectronics President and Chief Executive Officer (photo above). “This will be driven by the continued better than seasonal sales trends in Automotive, Industrial and Internet of Things applications.”
On a year-over-year basis, first quarter net revenues increased 22.2% with all product groups delivering double-digits revenue growth. Specifically, Microcontrollers and Digital ICs Group (MDG) revenues were up 26.6% largely driven by a strong expansion of microcontroller sales; Analog, MEMS and Sensors Group (AMS) revenues increased 26.5% on sharply higher Imaging sales, as well as growth in Analog and MEMS; and Automotive and Discrete Group (ADG) revenues were higher by 15.4% on double-digit growth for both Automotive and Power Discrete products.
The Company expects second quarter 2018 revenues to increase about 1.5% on a sequential basis, plus or minus 3.5 percentage points. Gross margin in the second quarter is expected to be about 40.0% plus or minus 2.0 percentage points.