ST had Q2 revenues 0f $2.17 billion; a gross margin of 38.2%; an operating margin of 9.0%; and net income of $160 million.

H1 net revenues are $4.25 billion with a gross margin 38.8%, an operating margin ofb9.6%, and net income of  $338 millio.

“As planned, in the second quarter we returned to sequential revenue growth,” said ST CEO Jean-Marc Chery (pictured) “in fact, revenues increased 4.7% driven by specialized imaging sensors, RF products for front end modules, silicon carbide MOSFETs and digital automotive, partially offset by general purpose analog, microcontrollers and legacy automotive products.

“Looking at the third quarter, we expect strong sequential revenue growth of about 15.3% at the mid- point,” added Chery, “this growth will be driven by engaged customer programs and new products in a softer than expected legacy automotive and industrial market. Gross margin is expected to be about 37.5%.”

“For the full year 2019, we now expect net revenues to be in the range of about $9.35 to $9.65 billion,” concluded Chery, “we confirm our investment plan of $1.1 to $1.2 billion.”

In the Automotive and Power Discrete Group, revenue increased in both Automotive and Power Discrete. The group’s operating profit decreased by 13.1% to $73 million. Operating margin was 8.2% compared to 9.7%.

In the Analog, MEMS and Sensors Group (AMS), Revenue increased in MEMS and Sensors while Analog decreased. The operating profit increased by 15.6% to $74 million. Operating margin was 10.7% compared to 10.5%.

In the Microcontrollers and Digital ICs Group (MDG) revenue decreased in both Microcontrollers and Digital ICs. Operating profit decreased by 71.7% to $45 million. Operating margin was 7.6% compared to 20.3%.

Free cash flow was negative $67 million in the second quarter, compared to negative $40 million in the year-ago quarter.

ST’s net financial position  was $308 million at June 29, 2019 compared to $510 million at March 30, 2019 and reflected total liquidity of $2.51 billion and total financial debt of $2.20 billion.

The company’s guidance for Q3 is net revenues are expected to increase about 15.3% sequentially, plus or minus 350 basis points with a gross margin of about 37.5%, plus or minus 200 basis points.