This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

STMicroelectronics At Citi Technology Conference (Transcript)

STMicroelectronics (STM)

Citi Technology Conference

September 04, 2012 01:30 PM ET


Philippe Lambinet - Chief Corporate Strategy Officer and General Manager


Amit Harchandani - Citi


Question-and-Answer Session

Amit Harchandani - Citi

Okay I guess we will get started, first of all thanks to all of you for joining us today. I am Amit Harchandani, I head the European Technology coverage for Citi based out of London and I am also the covering analyst for STM. I am delighted to have STM join us again this year and from STM today we have Philippe Lambinet and Tait Sorensen, Tait is Director of IR and Philippe I guess, those of you who are new to the STM is the firm's Chief Corporate Strategy Officer and the General Manager of the Digital Sector. In fact he is a chip veteran having spent probably 30 years, best part of 30 years of his life looking at chips of all shapes and sizes. So, without further delay I think Philippe said let’s quickly jump into Q&A straight-off so that’s what we are going to do. So, as a start maybe just to get the discussion going Philippe if you could just tell us what are you seeing in the market today. I mean STM is probably the best candidate given your diversified positioning to talk about the broader market trend, how would you characterize current demand versus the first half and is it better, worse, same, is it the same across different product segment?

Philippe Lambinet

When we published our results that the end of July for Q2, we already communicated that the following trend which we saw starting mid-last year an inventory correction and we saw the end of that inventory correction in Q1 this year and the only part of Q2 was actually quite positive. We had a good rebound, April and May bookings were quite good, so we were quite optimistic for the rest of the year. Now when we again when we published our result in July we said let’s not be too bullish, the June bookings and the July bookings have not been very good. The market is softening. What I can say is that softening is continuing. The August bookings have continued to be not very strong. So, it's too early to say whether it will rebound now and in Q4 or whether it's going to be a double dip and it will further weaken. Right now it's flattish so we had taken a flattish booking situation into account in our guidance for Q3 so we have no reason to change our guidance but it's a bit early to say how we will guide for Q4 and of course we will have another month and half before we have to do this but definitely the weakness is there, continues to be there. It's across all applications and it's across all regions, so there isn’t particularly dark spot and there isn’t a particularly bright spot I think all of the market is pretty weak.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.30 -0.92%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $234.18 0.80%
YHOO $35.97 -0.11%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs