STMicroelectronics NV (STM) has reported a 5,500 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $112 million in the quarter, compared with $2 million for the same period last year. On an adjusted basis, net profit for the quarter was $137 million, when compared with $2 million in the last year period.
Revenue during the quarter grew 11.45 percent to $1,859 million from $1,668 million in the previous year period. Gross margin for the quarter expanded 403 basis points over the previous year period to 37.55 percent. Total expenses were 93.06 percent of quarterly revenues, down from 98.50 percent for the same period last year. This has led to an improvement of 544 basis points in operating margin to 6.94 percent.
Operating income for the quarter was $129 million, compared with $25 million in the previous year period.
However, the adjusted operating income for the quarter stood at $153 million compared to $29 million in the prior year period. At the same time, adjusted operating margin improved 649 basis points in the quarter to 8.23 percent from 1.74 percent in the last year period.
"In the fourth quarter we continued to see sustained demand, resulting in revenues and gross margin better than the midpoint of our guidance. Net revenues grew 3.5% sequentially and 11.5% year-over-year; our gross margin of 37.5% increased substantially both sequentially and year-over-year," commented Carlo Bozotti, STMicroelectronics president and chief executive officer.
Debt comes down
STMicroelectronics NV has recorded a decline in total debt over the last one year. It stood at $1,451 million as on Dec. 31, 2016, down 9.99 percent or $161 million from $1,612 million on Dec. 31, 2015. Interest coverage ratio improved to 25.80 for the quarter from 4.17 for the same period last year.
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