STMicroelectronics Q1 Profit Up

(RTTNews) - Semiconductor company STMicroelectronics NV (STM) on Wednesday reported a 7.9 percent growth in its profit for the first quarter, as revenues rose 7.5 percent, led by higher sales of Imaging products, and Analog and Micro-controllers.

The group's net income for the quarter rose to $192 million from $178 million, and earnings per share edged up to $0.21 from $0.20 in the year-ago quarter.

While gross profit was up 3.5 percent, gross margin declined by 150 basis points to 37.9 percent, mainly impacted by price pressure and unsaturation charges, including COVID-19 workforce related restrictions.

For the first quarter, net revenues rose 7.5 percent to $2.23 billion. The Group attributed the growth to higher sales of Imaging, Analog and Microcontrollers, partially offset by lower sales in Automotive, Power Discrete and Digital.

Looking ahead, the Group expects net revenues for the second quarter to be $2.0 billion, down 10.3 percent sequentially, plus or minus 350 basis points. Gross margin are expected to be about 34.6 percent, plus or minus 200 basis points.