STMicroelectronics NV Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Financial Guidance for the First Quarter of 2014 and Year of 2015
For the year, the company reported net revenues of $8,082 million against $8,493 million a year ago. Operating loss was $465 million against $2,081 million a year ago. Loss before income taxes and non-controlling interest was $592 million against $2,137 million a year ago. Net loss attributable to parent company was $500 million or $0.56 per diluted share against $1,158 million or $131 per diluted share a year ago. Capital expenditure payments, net of proceeds from sales, were $531 million for 2013, compared to $476 million for 2012.
The Company expects first quarter 2014 revenues to decrease about 9.5% on a sequential basis, plus or minus 3.5 percentage points. As a result, gross margin in the first quarter is expected to be about 32.4%, plus or minus 2.0 percentage points. The company reconfirms long-term growth will be driven by the 5 growth drivers of Microcontrollers, MEMS and Sensors, Automotive, Digital Consumer and ASICs, and Smart Power. For example, The company expects 2 waves of new products to drive the doubling of DCG revenues from fourth quarter 2013 to fourth quarter 2015.
The company targets about a 10% to 15% operating margin for SPA as a part of model of about 10% profitability by mid-2015. Based on the current visibility for 2014, The company anticipates a CapEx in dollar at levels similar to the prior year.