Results
year-on-year. Net income was $160.6mn, almost three times that of the
previous year.
"Difficult market conditions are expected to persist in the first half of
2003," says president/CEO Pasquale Pistorio. "The combination of normal
seasonal patterns and continued price erosion leads us to anticipate that
STs Q1 2003 revenues will be between $1.62bn and $1.68bn. This would be
substantially above the $1.36bn reported for last years Q1, but below
2002 Q4 levels. Gross margin for the 2003 Q1 should be in the 36% to 37%
range, taking into account the effects of lower revenues and pricing
environment.
"For the full year, however, the picture is brighter. Based upon currently
available data and customer input, we believe 2003 will be a year of
progressive improvement for ST, one in which we will be able to
increasingly raise our levels of profitability. We anticipate that our
gross margin will steadily improve throughout 2003, approaching 40% by the
fourth quarter, fuelled by manufacturing efficiencies, better product mix
and higher volume, within a more favourable market environment."
