STMicroelectronics (ST) has released its first-quarter 2023 financial results. According to the company, net revenue was US$4.15 billion, a 19.8% YoY increase, and gross margin was 49.7%. Net income also saw a 39.8% YoY increase to US$1.04 billion.
Jean-Marc Chery, ST president & CEO, remarked that the first-quarter net revenues were better than expected in automotive and industrial sectors. However, the number was partially offset by lower revenue in personal electonics. According to Chery, ST's product mix in a "favorable" price environment contributed to the gross margin of 49.7%, 170 basis points above the mid-point of the company's business outlook range.
According to ST's guidance, at the mid-point, for second-quarter 2023: net revenue is expected to be US$4.28 billion, an increase of 0.8% sequentially, plus or minus 350 basis points. Gross margin is expected to reach 49.0%, plus or minus 200 basis points. This outlook is based on an assumed effective currency exchange rate of approximately US$1.08 = EUR1.00 for second-quarter 2023 and includes the impact of existing hedging contracts.
By product group, compared with the year-ago quarter, STMicroelctronics' automotive and discrete group (ADG) and microcontrollers and digital ICs group (MDG) both saw revenues increase. For analog, MEMS, and sensors group (AMS), revenue increased in imaging, but decreased in analog and MEMS.
"Our second quarter business outlook, at the mid-point, is for net revenues of US$4.28 billion, increasing YoY by 11.5% and increasing sequentially by 0.8%. Gross margin is expected to be about 49.0%," said the ST president, who also revealed a plan to "drive the company based on a plan for FY23 revenues in the range of US$17.0 billion to US$17.8 billion."
