STMicroelectronics recently released its first quarter revenue report. According to the report, net profit increased significantly in the first quarter due to rapid sales growth in all product categories and regions.
According to the report, ST’s net profit for the first quarter was US$239 million, compared with US$108 million in the same period last year. STMicroelectronics stated that during this period, revenue increased by 22% to 2.23 billion U.S. dollars, the reason of the growth is the excellent performance of the sales of automotive and industrial products.
Regarding the second-quarter revenue, STMicroelectronics stated that it expects to increase by 1.5% from the first quarter. The estimated gross profit margin for the three months is approximately 38%-42%.
STMicroelectronics stated that the current demand for smart phones is relatively slow, but it is expected that revenues in the second and first half of the year will increase by 17.5% and 19.8% year-on-year respectively, reaching the midpoint of the company's guidance.
“In the second half of the year, we saw healthy demand. There was a huge backlog in all of our product groups, including smart phones and regional end markets,” said Carlo Bozotti, President and CEO.
