The fourth quarter forecast is for a further 10 percent sequential growth that would take annual sales in 2017 to about $8.23 billion and 18 percent ahead of 2016 sales. This would be an exceptional result for a company with no involvement in DRAM and NAND flash, where high average selling prices are driving the market up 50 percent year-on-year.
ST said its Q3 revenue was $2.14 billion, up 11.1 percent sequentially – versus 9.0 percent forecast – and up 18.9 percent year-on-year. The company made a net income of $236 million compared with a net income of $71 million in the same quarter a year before.
"All product groups recorded double-digit year-over-year revenue growth, driven by strong demand across all geographies in our focus application areas of Internet of Things, smartphones, industrial and smart driving," said CEO Carlo Bozotti, in a statement.
The largest of ST's three main divisions is Automotive and Discrete Group (ADG) which achieved quarterly sales of $775 million, up 10.1 percent on a year before. The MCU and digital group (MDG) achieved sales of $701 million, up 19.4 percent. The smallest of the three is Analog and MEMS Group (AMG) with Q3 revenues of $502 million, but these sales were up 24.6 percent year-on-year.
One of the areas that was expected to make a difference in Q3 due to ramping of a high-volume product believed to be for Apple was the imaging product division revenues which are reported under others. Others registered revenue of $158 million, more than twice the sales seen in Q2, and up 53.4 percent compared with 3Q16. This included the initial ramp in wireless applications for ST's new product program, including time-of-flight and other new specialized imaging technologies, the company said.
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