ST Expects Progressively Improving Market
"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 effect 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."
