French Government Tips ST Into Profit.
Thanks to a payment of $100 million from the French government under the Nano2017 R&D support programme, STMicroelectronics recorded its first quarterly profit for 11 quarters in Q2.
Q2 revenue was $1.86 billion and net profit was $38 million.
Free cash flow was minus $99 million compared to minus $51 million in Q1.
ST’s net financial position was $423 million at the end of June ($1.55 billion cash less $ $1.13 billion debt) compared to $612 million at the end of March.
The proceeds from ST’s recent sale of $1 billion worth of bonds will be accounted for in Q3’s balance sheet.
There is another $300 million due to come from Nano2017.
ST recorded a loss of $52 million on exiting the 3Sun solar power jv with Sharp and Enel which made solar modules in ST’s 300mm Catania fab which was never facilitised for chip production. Both Sharp and ST have now transferred their shares in 3Sun to Enel.
“During the second quarter we made positive business and financial progress in key areas,” says ST CEO Carlo Bozotti.