“In the fourth quarter we continued to see sustained demand, resulting in revenues and gross margin better than the midpoint of our guidance. Net revenues grew 3.5% sequentially and 11.5% year-over-year; our gross margin of 37.5% increased substantially both sequentially and year-over-year,” says ST CEO Carlo Bozotti, “In 2016, revenues grew 1.1% compared to 2015. After a weak start to the year, reflecting both market and specific product transitions, revenues grew 6.5% in the second half of 2016 compared to the same period one year earlier.”

“By leveraging our strategic focus on Smart Driving and Internet of Things, we recorded year-over-year sales growth in the second half of 2016 across all of our product groups excluding discontinued businesses,” adds Bozotti, “throughout 2016 we also further strengthened our technology and product portfolio, accelerating innovation and time-to-market to reinforce our leadership. Overall, we have improved our operating profitability through the combination of revenue growth, gross margin expansion and operating expense control.”

ST expects Q1 revenues to be down 2.4% sequentially plus or minus 3.5%.

ST expects to invest about $1 billion to $1.1 billion in 2017 in 300mm front-end manufacturing and in back-end assembly and test.

For 2016, revenues were $6.97 billion for a profit of $165 million with free cash flow of $312 million.

By: DocMemory
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