ST had Q2 net revenues of $2.09 billion, a gross margin of 35%, an operating margin of 5.1% and net  income of $90 million.

H1 net revenues were $4.32 billion; gross margin 36.5%; operating margin 7.8%; net income $282 million

The company expects Q3 net revenues of  $2.45 billion with a  gross margin of 36.0

Q2 gross profit totaled $730 million, representing a year-over-year decrease of 12.2%. Operating income decreased 45.8% to $106 million, compared to $196 million in Q2 2019..

“During the second quarter, we returned to normal operations, supporting our customers’ demand and continuing to ensure the health and safety of our employees,” says CEO Jean-Marc Chery (pictured), “Q2 net revenues decreased 6.5% sequentially. As expected, this was due to the decline in Automotive, Analog and Imaging products, partially offset by growth in Microcontrollers, Digital and Power Discrete.”

“The first half of 2020 reflects year-over-year growth of 1.6%, driven by Analog, Imaging and Microcontrollers, partially offset by Automotive and Power Discrete,” adds Chery, “looking at the third quarter, we expect sequential revenue growth of 17.4% at the mid-point. This growth will be driven by engaged customer programs, new products and improved market conditions. Gross margin is expected to be 36.0% at the mid-point.”

“We will drive the Company based on an updated plan for FY20 net revenues between $9.25 billion and $9.65 billion with growth in the second half over the first half to be in the range of $610 million to $1.01 billion,” says Chery, “we expect this growth to be driven by engaged customer programs, new products and improved market conditions. Our CAPEX plan for 2020 is now about $1.2 billion.”

Q2 capex was  $312 million compared to $372 million in Q2 2019.

Inventory at the end of Q2 was $1.96 billion, up from $1.89 billion in Q2 2019.

Free cash flow was positive $28 million in the second quarter, compared to negative $67 million in Q2 2019..

ST’s net financial position was $570 million at June 27, 2020 compared to $668 million at March 28, 2020 and reflected total liquidity of $2.62 billion and total financial debt of $2.05 billion.

Q3 guidance is for net  revenues of $2.45 billion, an increase of 17.4% sequentially, plus or minus 350 basis points;