And priority number three, we are focused on carefully managing our assets and investments, and we can see this evidenced in our revised CapEx spending and in our net financial position remaining strong.
All these actions will enable us to improve our profitability and to enhance our flexibility to adjust to market changes.
Turning now to the second quarter in detail. Revenues were up sequentially 6.5% to $2.15 billion and gross margin improved 470 basis points to 34.3%. We had expected the growth to be broad-based and it was, with all product segments reporting sequential growth even with the macro-driven change in customer demand in June.
Revenues from our wholly-owned businesses increased 4.4% on a sequential basis, with APG and AMM somewhat below our expectations while Digital and Power Discrete came in at or above our expectations.
AMM’s second quarter net revenues increased 2.2% led by our analog and microcontroller applications.
Our automotive business grew sequentially 3.4%, driven by market share gains and growth in China, Japan and U.S.
Digital revenues increased about 5% sequentially, thanks to our set-top box products and despite a decrease in Imaging, due to the situation at specific customers, which has also significantly impacted the profitability of the Digital segment. Power Discrete saw 12.3% sequential growth in the quarter led by Power MOSFETs.
ST-Ericsson had been expecting low double-digit sales growth and came in higher at 19% as the NovaThor U8500 ModAp systems started to successfully ramp at major customers including Samsung and Sony Mobile Communications.
As I outlined at the start of the call, a key priority for the second half of the year is gaining market share, profitable market share growth. We had a number of new design wins in the quarter, healthcare and wellness, power management and energy savings, trust and security for instance. And we have a number of new product ramps during the second quarter.
Read the rest of this transcript for free on seekingalpha.com