STMicroelectronics Q3 Profit Declines, Revenues Rise - Quick Facts

(RTTNews) - STMicroelectronics (STM), a semiconductor company, reported that its third-quarter net income attributable to parent company declined to $71 million or $0.08 per share from last year's $90 million or $0.10 per share.

The year-ago quarter's results included an income tax benefit of $14 million related to the settlement of a tax assessment.

Operating income for the quarter edged down to $90 million from $91 million in the year-ago period. However, operating income before impairment and restructuring charges grew to $119 million from $102 million a year ago.

Third-quarter net revenues increased 1.9 percent to $1.80 billion from $1.76 billion last year. Net revenue increased 3.4 percent excluding businesses undergoing a phase-out, such as mobile legacy products, camera modules and set-top box.

Looking ahead to the fourth quarter, the company expects revenues to increase about 3.2 percent on a sequential basis, plus or minus 3.5 percentage points. Gross margin in the fourth quarter is expected to be about 37.0 percent, plus or minus 2.0 percentage points.

For 2016, the company expects to improve its profitability and continue to generate solid free cash flow.