|
·
|
Third
quarter revenues come in at high end of outlook range, increasing
6.1%
sequentially
|
|
·
|
Third
quarter benefited from strong sequential improvement in Application
Specific Groups’ operating margin
|
|
·
|
Net
operating cash flow reached $255 million in the quarter and $652
million
for the first nine months of 2007 on lighter-asset strategy
advances
|
|
In
Million US$ and %
|
Q3
2007
|
|
|
ST
|
ST
excluding FMG
|
|
|
Net
Revenues
|
$2,565
|
$2,213
|
|
Sequential
Growth
|
6.1%
|
6.1%
|
|
Year-over-Year
Growth
|
2.1%
|
3.7%
|
|
In
Million US$ and %
|
Q3
2007
|
|
|
ST
|
ST
excluding FMG
|
|
|
Gross
Profit
|
$902
|
$865
|
|
Gross
Margin
|
35.2%
|
39.1%
|
| * |
Net
operating cash flow is a non-US GAAP metric, which the Company’s
management utilizes as a measure of cash-generation capability. It
is
defined as net cash from operating activities ($511 million in the
third
quarter of 2007) minus net cash used in investing activities (primarily
capital expenditures) excluding restricted cash, payments for purchase
of
and proceeds from the sale of marketable securities and investment
in and
proceeds from matured short-term deposits ($256 million in the third
quarter of 2007).
|
| ** |
Net
financial position is a non-US GAAP metric used by the Company’s
management to help assess financial flexibility. It is defined as
cash and
cash equivalents, marketable securities, short-term deposits and
restricted cash ($3,289 million) minus total debt (bank overdrafts
$0
million + current portion of long-term debt $74 million + long-term
debt
$2,099 million).
|
|
As
% of Net Revenues
|
Q3
2007
|
|
|
Market
Segment
|
ST
|
ST
excluding FMG
|
|
Automotive
|
15%
|
16%
|
|
Consumer
|
17%
|
18%
|
|
Computer
|
16%
|
17%
|
|
Telecom
|
37%
|
33%
|
|
Industrial
& Other
|
15%
|
16%
|
|
In
Million US$ and %
|
Q3
2007
|
||
|
Segment
|
Net
Revenues
|
%
of
Net
Revenues
|
Operating
income
(loss)
|
|
ASG
(Application Specific Product Groups)
|
$1,394
|
54.3%
|
$142
|
|
IMS
(Industrial and Multisegment Sector)
|
804
|
31.4%
|
129
|
|
FMG
(Flash Memories Group)
|
352
|
13.7%
|
(35)
|
|
Others
(1)(2)
|
15
|
0.6%
|
(55)
|
|
TOTAL
|
$2,565
|
100%
|
$181
|
| (1) |
Net
revenues of “Others” include revenues from sales of Subsystems and other
products not allocated to product
segments.
|
| (2) |
Operating
loss of “Others” includes items such as impairment, restructuring charges,
and other related closure costs, start-up costs, and other unallocated
expenses such as strategic or special research and development programs,
certain corporate-level operating expenses, certain patent claims
and
litigations, and other costs that are not allocated to the product
segments, as well as operating earnings or losses of the Subsystems
and Other Products
segment. In the 2007 third quarter the one-time charge for the seniority
benefits program are also included in
“Others”.
|
|
In
Million US$ and %
|
First
Nine Months 2007
|
|
|
ST
|
ST
excluding FMG
|
|
|
Net
Revenues
|
$7,258
|
$6,252
|
|
Year-over-Year
Growth
|
-1.5%
|
1.3%
|
|
In
Million US$ and %
|
First
Nine Months 2007
|
||
|
Segment
|
Net
Revenues
|
%
of
Net
Revenues
|
Operating
income
(loss)
|
|
ASG
(Application Specific Product Groups)
|
$3,918
|
54.0%
|
$195
|
|
IMS
(Industrial and Multisegment Sector)
|
2,292
|
31.5%
|
338
|
|
FMG
(Flash Memories Group)
|
1,006
|
13.9%
|
(77)
|
|
Others
(1)(2)
|
42
|
0.6%
|
(985)
|
|
TOTAL
|
$7,258
|
100%
|
$(529)
|
|
·
|
On
August 8, 2007, the Company and Nokia
announced their intention to deepen their collaboration in the licensing
and supply of integrated-circuit designs and modem technologies for
3G and
its evolution. The two companies also announced that they are negotiating
a plan related to the transfer of a part of Nokia's Integrated Circuit
(IC) operations to
STMicroelectronics.
|
|
·
|
On
August 9, 2007, the Company announced that Philippe Lambinet had
joined
the company as Corporate Vice President and General Manager of the
Company's Home Entertainment and Displays (HED) Group, reporting
directly
to President and CEO Carlo Bozotti.
|
|
·
|
With
the recently received clearance from the FTC and the prior European
Commission approval, all required regulatory clearances for Numonyx,
the
joint venture company that will combine key Flash memory assets from
both
ST and Intel, have been received. Numonyx is on track for a Q4
launch.
|
|
·
|
In
mobile communications, ST announced the newest addition to its Nomadik™
family of mobile multimedia application processors. The STn8811 builds
on
the success of the STn8810 by increasing the speed of its ARM9 core
by
almost 50% to deliver stunning performance for general-purpose
applications running alongside video, music and image processing
on smart
mobile phones, personal media players and personal navigation devices.
|
|
·
|
In
connectivity, ST continued to increase its market share with the
gain of
further design-ins for new phones, and strong shipments to existing
customers. ST’s Bluetooth products have now been designed into a multitude
of mobile phones, of which 60 are already available in the market;
and
ST’s wireless LAN ICs are already in more than 15 phones currently on
the
market.
|
|
·
|
In
the communications infrastructure market, ST unveiled its new RF
synthesizer with integrated voltage-controlled oscillators and the
highest
frequency coverage in the market. The STW81103 is the first single-chip
device to operate at up to 5GHz and is aimed at applications such
as
wireless network infrastructures, CATV systems, instrumentation and
test
equipment.
|
|
·
|
In
digital consumer, ST announced that Korea Telecom’s launch of its new IPTV
service, using high-definition (HDTV) set-top boxes (STBs), is based
on
ST’s STi710x family of highly integrated HDTV decoder chips. ST also
announced that it had shipped a cumulative total of more than 400
million
MPEG-2 and MPEG-4 decoder chips - used worldwide in STBs, digital
television sets (DTV) and DVD players - since entering the market
with the
world’s first MPEG-2 System-on-Chip (SoC) decoder in
1995.
|
|
·
|
ST
gained an important design win from a major Japanese manufacturer
for a
sound processor to be used in a high-end TV for the Japanese market.
Additionally, ST started shipments of its ‘Sound Terminal’ digital
amplifiers with integrated sound processing and Bluetooth v1.2
connectivity capability to a major Japanese manufacturer that is
launching
AD2P Bluetooth speakers in Europe and Japan. ST also
gained several other design wins for Bluetooth audio products in
cradle
and home-system applications.
|
|
·
|
In
computer peripherals, ST gained a design win from a world-leading
hard-disk drive (HDD) manufacturer for a 65nm SoC that uses ST’s Read
Channel and Serial Interface (SATA) Intellectual Property (IP). The
SoC
will be used in mobile and consumer HDDs, with production expected
in
2009. Additionally, ST’s leading-edge SPEAr™ (Structured Processor
Enhanced Architecture) family of customizable digital engines gained
significant design wins with three leading manufacturers of printers
and
PC peripherals.
|
| · |
In
automotive, ST strengthened its leadership in safety applications
with the
design win for the next-generation airbag platform with a major American
company that will go into production in 2010 in vehicles for the
American,
European and China markets. ST also won a design from a major American
maker for a full GDI (gasoline direct injection) platform. In addition,
ST
expanded its customer base with wins from several customers in
applications, such as power-steering modules and turbo controllers.
And
following ST’s agreement with Mobileye, design wins in advanced safety
have also been awarded to ST by major automotive
OEMs.
|
|
·
|
In
car radio and multimedia applications, ST gained important design
wins at
major Japanese and Korean car radio makers and from Bosch Blaupunkt
for
the new generation of Digital Audio Broadcasting (DAB) and Digital
Radio
Mondiale (DRM) receiver platforms. ST also announced it had shipped
more
than 15 million units of its TDA7540 high-performance single-chip
tuner IC
used in analog AM/FM car-radio applications. Additionally, ST launched
volume production of its Teseo GPS engine designed for use in certain
Garmin Portable Navigation Devices and handheld GPS receivers, and
achieved important design-ins for new navigation SoC devices with
several
customers, including major European
OEMs.
|
|
·
|
In
car body applications, ST increased its market share with growth
coming
from wide customer acceptance of ST’s smart power products, including a
major design win for novel smart power actuators. ST also achieved
a
design win from a world leader for a new 32-bit microcontroller,
jointly
developed with Freescale, for a generic car body platform. The Company
also gained an important design in the emerging automotive markets
of
India and the Middle East.
|
|
·
|
ST
introduced a new series of 8-bit Flash microcontrollers, within the
low-cost ST7Lite
family,
that feature up to 24 I/O (input/output) lines, further extending
the
range of MCUs for cost-sensitive applications. The ST7Lite49M is
designed
specifically for simpler products such as security and lighting systems,
power management, small appliances, sensors and motor control.
|
|
·
|
ST
announced the availability of its POS (Point of Sale) reference design
that integrates the card payment and fiscal cash register on a single
board. The all-in-one system delivers optimized performance and
significant cost benefits, coupled with superior reliability and
expandability. The solution addresses the main market requirements
by
providing a machine that is equipped with a fiscal cash register,
which
records all sales transactions for tax
purposes.
|
|
·
|
A
new family of secure microcontrollers based on a 0.13-micron
state-of-the-art process technology was introduced by ST, intended
for
banking, loyalty card and other financial applications. This advanced
family is based on the new ST23 secure platform, which takes advantage
of
the most recent improvements in security technology and offers optimized
computing power for next-generation secure applications.
|
|
·
|
ST
announced a 1-Mbit serial EEPROM with SPI bus in the SO8N package
- the
first in the market to squeeze this high EEPROM density into such
a tiny
package. The M95M01 is aimed at storage of fast-changing parameter
data in
digital TVs, DVD players and gaming, as well as in medical, industrial,
car infotainment and computer
peripherals.
|
| · |
In
MEMS, ST started mass production of its LIS302DL digital-output three-axis
accelerometer as the single source for two different customers for
mobile
phone and portable multimedia player applications. ST also extended
its
family of ultra-compact ‘low-g’ linear accelerometers with the LIS244AL,
which has an ultra-compact square footprint and low power consumption,
making the motion-sensing device ideally suited for battery-powered
portable applications.
|
|
·
|
In
advanced analog, ST launched two families of Power-over-Ethernet
(PoE)
interface controllers, which help eliminate external power supplies
to
many wired LAN devices, such as VoIP phones and security cameras.
ST also
announced two high-accuracy application-specific digital chips intended
for monitoring the temperature of the memory modules used in PCs.
|
|
·
|
In
voltage regulators and interfaces, ST gained an outstanding design
win
with a new camera-flash driver IC. A key European mobile phone maker
has
already qualified the product in two new platforms, which are expected
to
be introduced to the market in Q2 2008. Additionally, an ST high-speed
transceiver moved into advanced qualification with a world-leading
European mobile phone manufacturer, with significant volume production
expected during 2008.
|
|
·
|
In
the field of application-specific devices and IPAD™ (Integrated Passive
and Active Devices), ST gained several design-wins in mobile phone
and
portable MP3 players with its family of ESD-protection diodes, assembled
in micro-QFN packages. In rectifiers, ST is now successfully deploying
worldwide its new ultra-fast diodes and Power Schottky diodes with
enhanced avalanche specifications. The Company has achieved several
key
design-wins and new product introductions in growing consumer
applications, such as plasma display panels, LCD TV power supplies
and
video game consoles.
|
|
·
|
In
power conversion, ST won designs in multiple computing applications,
including a new controller for CPU power management from a leading
US
server company, a family of high-voltage converters for a power-supply
design from a major Asian OEM, and a major socket for a new lighting
application from two leading manufacturers in
Asia.
|
|
·
|
In
power MOSFETs, ST achieved several important design wins, including
two in
automotive with US manufacturers, and three for set-top boxes from
world
leading European and US manufacturers. And in power RF, IGBT and
power
bipolar products, ST gained design wins in several fields, including
lighting and home appliance applications.
|
|
·
|
ST
announced availability of the M25PX32, a 32-Mbit device that is the
first
of the sector, sub-sector erase Serial Flash family to be offered
with
Dual I/O. Digital flat panels and set-top-boxes are typical applications
that will benefit from this device. In addition, along with other
leading
companies, ST announced it was supporting the creation of a far-ranging
industry specification for removable memory cards and embedded memory
solutions being standardized by the JEDEC Solid State Technology
Association.
|
|
·
|
future
developments of the world semiconductor market, in particular the
future
demand for semiconductor products in the key application markets
and from
key customers served by our
products;
|
|
·
|
pricing
pressures, losses or curtailments of purchases from key
customers
all of which are highly variable and difficult to predict;
|
|
·
|
the
financial impact of obsolete or excess inventories if actual demand
differs from our
anticipations;
|
|
·
|
the
impact of intellectual property claims by our competitors or other
third
parties, and our ability to obtain required licenses on reasonable
terms
and conditions;
|
|
·
|
changes
in the exchange rates between the US dollar and the Euro, compared
to an
assumed effective exchange rate of US $1.41 = €1.00 and between the U.S.
dollar and the currencies of the other major countries in which we
have
our operating infrastructure;
|
|
·
|
our
ability to manage in
an intensely competitive and cyclical industry, where a high percentage
of
our
costs
are fixed and difficult to reduce in the short term,
including our ability to adequately utilize and operate our manufacturing
facilities at sufficient levels to cover fixed operating
costs;
|
|
·
|
our
ability to close, as currently planned and scheduled, our agreement
with
Intel and Francisco Partners concerning the creation of a new independent
Flash memory company to be named “Numonyx” if the financial, business or
other conditions to Closing as contractually provided are not met;
and the
estimated loss of $857 million posted so far, in relation to our
Flash
memory business, may materially change at Closing as a result of
developments in the Flash memory
business;
|
|
·
|
our
ability in an intensively competitive environment
to secure customer acceptance and to achieve our pricing expectations
for
high-volume supplies of new products in whose development we have
been, or
are currently, investing;
|
|
·
|
the
attainment of anticipated benefits of research and development alliances
and cooperative activities, as well as the uncertainties concerning
the
modalities, conditions and financial impact beyond
2007 of
future R&D activities in
Crolles2;
|
|
·
|
the
ability of our suppliers to meet our demands for supplies and materials
and to offer competitive
pricing;
|
|
·
|
significant
differences in the gross margins we achieve compared to expectations,
based on changes in revenue levels, product mix and pricing, capacity
utilization, variations in inventory valuation, excess or obsolete
inventory, manufacturing yields, changes in unit costs, impairments
of
long-lived assets (including manufacturing, assembly/test and intangible
assets), and the timing and execution of our manufacturing investment
plans and associated costs, including start-up
costs;
|
|
·
|
changes
in the economic, social or political environment, including
military conflict and/or terrorist activities, as
well as natural events such as severe weather, health risks, epidemics
or
earthquakes in the countries in which
we, our key customers and
our suppliers, operate;
|
|
·
|
changes
in our overall tax position as a result of changes in tax laws or
the
outcome of tax audits, and our ability to accurately estimate tax
credits,
benefits, deductions and provisions and to realize deferred tax
assets;
|
|
·
|
the
outcome of litigation;
|
|
·
|
the
results of actions by our competitors,
including new product offerings and our ability to react
thereto.
|
|
STMicroelectronics
N.V.
|
||||
|
Consolidated
Statements of Income
|
||||
|
(in
million of U.S. dollars, except per share data
($))
|
|
Three
Months Ended
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
|
September
29,
|
September
30,
|
||||||
|
2007
|
2006
|
||||||
|
Net
sales
|
2,555
|
2,502
|
|||||
|
Other
revenues
|
10
|
11
|
|||||
|
NET
REVENUES
|
2,565
|
2,513
|
|||||
|
Cost
of sales
|
-1,663
|
-1,609
|
|||||
|
GROSS
PROFIT
|
902
|
904
|
|||||
|
Selling,
general and administrative
|
-272
|
-264
|
|||||
|
Research
and development
|
-442
|
-421
|
|||||
|
Other
income and expenses, net
|
24
|
-5
|
|||||
|
Impairment,
restructuring charges and other related closure costs
|
-31
|
-20
|
|||||
|
Total
Operating Expenses
|
-721
|
-710
|
|||||
|
OPERATING
INCOME
|
181
|
194
|
|||||
|
Interest
income, net
|
22
|
17
|
|||||
|
Earnings
(loss) on equity investments
|
3
|
-1
|
|||||
|
INCOME
BEFORE INCOME TAXES
|
206
|
210
|
|||||
|
AND
MINORITY INTERESTS
|
|||||||
|
Income
tax expense
|
-18
|
-2
|
|||||
|
INCOME
BEFORE MINORITY INTERESTS
|
188
|
208
|
|||||
|
Minority
interests
|
-1
|
-1
|
|||||
|
NET
INCOME
|
187
|
207
|
|||||
|
EARNINGS
PER SHARE (BASIC)
|
0.21
|
0.23
|
|||||
|
EARNINGS
PER SHARE (DILUTED)
|
0.20
|
0.22
|
|||||
|
NUMBER
OF WEIGHTED AVERAGE
|
|||||||
|
SHARES
USED IN CALCULATING
|
945.2
|
957.1
|
|||||
|
DILUTED
EARNINGS PER SHARE
|
|||||||
|
STMicroelectronics
N.V.
|
||||
|
Consolidated
Statements of Income
|
||||
|
(in
million of U.S. dollars, except per share data
($))
|
|
Nine
Months Ended
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
|
September
29,
|
September
30,
|
||||||
|
2007
|
2006
|
||||||
|
Net
sales
|
7,233
|
7,356
|
|||||
|
Other
revenues
|
25
|
15
|
|||||
|
NET
REVENUES
|
7,258
|
7,371
|
|||||
|
Cost
of sales
|
-4,733
|
-4,748
|
|||||
|
GROSS
PROFIT
|
2,525
|
2,623
|
|||||
|
Selling,
general and administrative
|
-803
|
-786
|
|||||
|
Research
and development
|
-1,322
|
-1,238
|
|||||
|
Other
income and expenses, net
|
20
|
-28
|
|||||
|
Impairment,
restructuring charges and other related closure costs
|
-949
|
-67
|
|||||
|
Total
Operating Expenses
|
-3,054
|
-2,119
|
|||||
|
OPERATING
INCOME (LOSS)
|
-529
|
504
|
|||||
|
Interest
income, net
|
57
|
69
|
|||||
|
Earnings
(loss) on equity investments
|
12
|
-6
|
|||||
|
INCOME
(LOSS) BEFORE INCOME TAXES
|
-460
|
567
|
|||||
|
AND
MINORITY INTERESTS
|
|||||||
|
Income
tax expense
|
-32
|
-60
|
|||||
|
INCOME
(LOSS) BEFORE MINORITY INTERESTS
|
-492
|
507
|
|||||
|
Minority
interests
|
-4
|
-1
|
|||||
|
NET
INCOME (LOSS)
|
-496
|
506
|
|||||
|
EARNINGS
(LOSS) PER SHARE (BASIC)
|
-0.55
|
0.56
|
|||||
|
EARNINGS
(LOSS) PER SHARE (DILUTED)
|
-0.55
|
0.54
|
|||||
|
NUMBER
OF WEIGHTED AVERAGE
|
|||||||
|
SHARES
USED IN CALCULATING
|
898.5
|
964.5
|
|||||
|
DILUTED
EARNINGS (LOSS) PER SHARE
|
|||||||
|
STMicroelectronics
N.V.
|
||||||
|
CONSOLIDATED
BALANCE SHEETS
|
|
As
at
|
September
29,
|
June
30,
|
December
31,
|
|||||||
|
In
million of U.S. dollars
|
2007
|
2007
|
2006
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||
|
|
|
|
|
|||||||
|
ASSETS
|
||||||||||
|
Current
assets:
|
||||||||||
|
Cash
and cash equivalents
|
1,650
|
1,374
|
1,659
|
|||||||
|
Marketable
securities
|
1,389
|
1,406
|
764
|
|||||||
|
Short-term
deposits
|
0
|
0
|
250
|
|||||||
|
Trade
accounts receivable, net
|
1,637
|
1,543
|
1,589
|
|||||||
|
Inventories,
net
|
1,370
|
1,337
|
1,639
|
|||||||
|
Deferred
tax assets
|
237
|
205
|
187
|
|||||||
|
Assets
held for sale
|
1,211
|
1,204
|
0
|
|||||||
|
Other
receivables and assets
|
669
|
596
|
498
|
|||||||
|
Total
current assets
|
8,163
|
7,665
|
6,586
|
|||||||
|
Goodwill
|
230
|
225
|
223
|
|||||||
|
Other
intangible assets, net
|
165
|
157
|
211
|
|||||||
|
Property,
plant and equipment, net
|
4,904
|
4,843
|
6,426
|
|||||||
|
Long-term
deferred tax assets
|
124
|
134
|
124
|
|||||||
|
Equity
investments
|
0
|
0
|
261
|
|||||||
|
Restricted
cash for equity investments
|
250
|
250
|
218
|
|||||||
|
Other
investments and other non-current assets
|
162
|
158
|
149
|
|||||||
|
5,835
|
5,767
|
7,612
|
||||||||
|
Total
assets
|
13,998
|
13,432
|
14,198
|
|||||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||
|
Current
liabilities:
|
||||||||||
|
Bank
overdrafts
|
0
|
41
|
0
|
|||||||
|
Current
portion of long-term debt
|
74
|
127
|
136
|
|||||||
|
Trade
accounts payable
|
1,015
|
1,003
|
1,044
|
|||||||
|
Other
payables and accrued liabilities
|
753
|
714
|
664
|
|||||||
|
Deferred
tax liabilities
|
11
|
10
|
7
|
|||||||
|
Accrued
income tax
|
72
|
41
|
112
|
|||||||
|
Total
current liabilities
|
1,925
|
1,936
|
1,963
|
|||||||
|
Long-term
debt
|
2,099
|
1,992
|
1,994
|
|||||||
|
Reserve
for pension and termination indemnities
|
362
|
362
|
342
|
|||||||
|
Long-term
deferred tax liabilities
|
77
|
66
|
57
|
|||||||
|
Other
non-current liabilities
|
160
|
105
|
43
|
|||||||
|
2,698
|
2,525
|
2,436
|
||||||||
|
Total
liabilities
|
4,623
|
4,461
|
4,399
|
|||||||
|
Commitment
and contingencies
|
||||||||||
|
Minority
interests
|
51
|
56
|
52
|
|||||||
|
Common
stock (preferred stock: 540,000,000 shares authorized, not
issued;
|
1,156
|
1,156
|
1,156
|
|||||||
|
common
stock: Euro 1.04 nominal value, 1,200,000,000 shares authorized,
910,293,420 shares
|
||||||||||
|
issued,
899,320,243 shares outstanding)
|
||||||||||
|
Capital
surplus
|
2,070
|
2,055
|
2,021
|
|||||||
|
Accumulated
result
|
5,274
|
5,087
|
6,086
|
|||||||
|
Accumulated
other comprehensive income
|
1,109
|
903
|
816
|
|||||||
|
Treasury
stock
|
-285
|
-286
|
-332
|
|||||||
|
Shareholders'
equity
|
9,324
|
8,915
|
9,747
|
|||||||
|
Total
liabilities and shareholders' equity
|
13,998
|
13,432
|
14,198
|
|||||||
|
STMicroelectronics
N.V.
|
||||||||
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||
|
September
29,
|
September
29,
|
September
30,
|
||||||||
|
In
million of U.S. dollars
|
2007
|
2007
|
2006
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||
|
|
|
|
|
|||||||
|
Cash
flows from operating activities:
|
||||||||||
|
Net
income (loss)
|
187
|
-496
|
506
|
|||||||
|
Items
to reconcile net income (loss) and cash flows from operating
activities
|
||||||||||
|
Depreciation
and amortization
|
309
|
1,079
|
1,337
|
|||||||
|
Amortization
of discount on convertible debt
|
4
|
13
|
13
|
|||||||
|
Other
non-cash items
|
39
|
78
|
13
|
|||||||
|
Minority
interests
|
1
|
4
|
1
|
|||||||
|
Deferred
income tax
|
-6
|
-13
|
-40
|
|||||||
|
(Earnings)
loss on equity investments
|
-3
|
-12
|
6
|
|||||||
|
Impairment,
restructuring charges and other related closure costs, net of
cash
payments
|
20
|
905
|
2
|
|||||||
|
Changes
in assets and liabilities:
|
||||||||||
|
Trade
receivables, net
|
-82
|
-36
|
-163
|
|||||||
|
Inventories,
net
|
62
|
9
|
-135
|
|||||||
|
Trade
payables
|
-43
|
-45
|
235
|
|||||||
|
Other
assets and liabilities, net
|
23
|
-35
|
157
|
|||||||
|
Net
cash from operating activities
|
511
|
1,451
|
1,932
|
|||||||
|
Cash
flows from investing activities:
|
||||||||||
|
Payment
for purchases of tangible assets
|
-228
|
-735
|
-1,147
|
|||||||
|
Payment
for purchases of marketable securities, net of proceeds from
sale
|
34
|
-608
|
-419
|
|||||||
|
Investment
in short-term deposits
|
0
|
0
|
-903
|
|||||||
|
Proceeds
from matured short-term deposits
|
0
|
250
|
401
|
|||||||
|
Restricted
cash for equity investments
|
0
|
-32
|
0
|
|||||||
|
Investment
in intangible and financial assets
|
-28
|
-64
|
-71
|
|||||||
|
Proceeds
from the sale of Accent subsidiary
|
0
|
0
|
7
|
|||||||
|
Capital
contributions to equity investments
|
0
|
0
|
-212
|
|||||||
|
Net
cash used in investing activities
|
-222
|
-1,189
|
-2,344
|
|||||||
|
Cash
flows from financing activities:
|
||||||||||
|
Proceeds
from issuance of long-term debt
|
65
|
82
|
1,562
|
|||||||
|
Repayment
of long-term debt
|
-60
|
-112
|
-1,497
|
|||||||
|
Decrease
in short-term facilities
|
-40
|
0
|
-12
|
|||||||
|
Capital
increase
|
0
|
2
|
28
|
|||||||
|
Dividends
paid
|
0
|
-269
|
-107
|
|||||||
|
Dividends
paid to minority interests
|
-6
|
-6
|
0
|
|||||||
|
Net
cash used in financing activities
|
-41
|
-303
|
-26
|
|||||||
|
Effect
of changes in exchange rates
|
28
|
32
|
50
|
|||||||
|
Net
cash decrease
|
276
|
-9
|
-388
|
|||||||
|
Cash
and cash equivalents at beginning of the period
|
1,374
|
1,659
|
2,027
|
|||||||
|
Cash
and cash equivalents at end of the period
|
1,650
|
1,650
|
1,639
|
|||||||
| STMicroelectronics N.V. | ||
| |
|
|
| Date: October 24, 2007 | By: | /s/ CARLO FERRO |
|
|
||
|
Name:
Carlo Ferro
Title:
Executive Vice President and Chief Financial
Officer
|
||