STMicro reported an adjusted net loss of $0.03 per share and American Depositary Receipt, up from a $0.13 loss per share in the year-ago period. Sales declined 9.1% to $1.83 billion. Both numbers were exactly in line with analyst expectations.
The lower sales follow from STMicro exiting the ST-Ericsson joint venture, and would have increased 0.7% year-over-year if that division were excluded from the reported results. In particular, STMicro saw approximately 15.5% year-over-year sales growth in the automotive and MMS (microcontroller, memory, and secure microcontrollers) divisions.
Looking ahead, STMicro CEO Carlo Bozotti put the midpoint of his second-quarter revenue guidance at $1.87 billion -- slightly below the current Street view of $1.93 billion. Gross margins should land near 33.6%, up from 32.8% in the just-reported quarter.
Mr. Bozotti credited the ST-Ericsson wind-down and an improving macro-economic environment for helping STMicroelectronics in the first quarter. "Our general-purpose microcontroller business enjoyed the fourth consecutive quarter of record revenues and today, ST is the second largest player worldwide in microcontrollers, including both general-purpose and secure," Bozotti said in a prepared statement.