STMicroelectronics Reports First Quarter 2022 Financial Results
“ST’s second-quarter midterm outlook calls for net revenue of $3.75 billion, up 25.3% year-on-year and 5.8% sequentially; the gross margin should be approximately 46.0%,” said Jean-Marc Chery, president and CEO of STMicroelectronics. “First quarter net revenue of $3.55 billion and gross margin of 46.7% are above the midpoint of our business outlook range. This revenue performance, driven by strong demand for microcontrollers, was partially offset by the temporary reduction in operations at our manufacturing facility in Shenzhen, China due to the pandemic.
“On a yearly basis, first quarter net revenue increased 17.6%, operating margin increased from 14.6% to 24.7% and net income more than doubled to $747 million. dollars,” Chery added.
Net revenues totaled $3.55 billion, a 17.6% year-over-year increase. Year-over-year, the company recorded higher net sales in all product groups except the Imaging sub-group, as expected. Year-over-year net sales to OEMs and distribution increased 14.4% and 24%, respectively.
Gross profit totaled $1.65 billion, a 40.8% year-over-year increase. Gross margin of 46.7% increased 770 basis points year-over-year, primarily due to better product mix and favorable pricing, and was 170 basis points above midpoint of the company’s forecast.
Free cash flow (non-US GAAP) was $82 million in the first quarter, compared to $261 million in the year-ago quarter.