Q3 2024 STMicroelectronics NV Earnings Call Transcript
Key Points
- STMicroelectronics NV (STM) reported Q3 net revenues of $3.25 billion, aligning with the midpoint of their business outlook range.
- The company announced a new company-wide program to reshape its manufacturing footprint, focusing on transitioning to 300mm silicon and 200mm silicon carbide, which is expected to improve operating efficiencies.
- STMicroelectronics NV (STM) introduced its fourth generation of silicon carbide MOSFET technology, achieving new benchmarks in power efficiency and density, particularly for electric vehicles.
- The company reported multiple design wins in automotive, including traction inverter and onboard charger designs, and continued traction with automotive microcontrollers.
- STMicroelectronics NV (STM) announced a strategic collaboration with Qualcomm Technologies to integrate wireless connectivity technologies with their STM32 microcontroller ecosystem, enhancing IoT solutions.
- Q3 net revenues decreased 26.6% year over year, primarily due to declines in industrial and automotive segments.
- Gross margin decreased significantly to 37.8% from 47.6% year over year, impacted by product mix and higher unused capacity charges.
- The company anticipates Q4 2024 revenues at the low end of the previously indicated range, with a year-over-year decline of 22.4%.
- STMicroelectronics NV (STM) experienced a significant decline in microcontroller revenues, down 43.4% year over year, largely driven by industrial market weakness.
- The automotive market saw further deterioration in customer backlog and order entry, with a shift from full battery electric to hybrid vehicles, impacting silicon carbide demand.
Ladies and gentlemen, welcome to the STMicroelectronics third quarter 2024 earnings release conference call and live webcast. I am Myra, the Chorus Call operator. (Operator Instructions) The conference has been recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jean-Marc Chery, President and CEO. Please go ahead.
Thank you, Myra, and good morning, everyone. Before starting this call, I am very pleased to announce the appointment of Jérôme Ramel as Executive Vice President, Corporate Development and Integrated External Communication. Jérôme has been associated with our company for many years as a recognized European semiconductor analyst and has had 24 years of experience in certain roles in various finance institutions.
He brings in-depth knowledge of the semiconductor industry and capital
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