ST appoints Bozotti CEO for one more year
There had been speculation about when Bozotti would retire and who would follow him as leader of STMicroelectonics, a broad-based chip company with annual sales of about $7 billion. Bozotti will serve for one more year, a year in which he turns 65, and then retire from the CEO position.
The expectation is that Jean-Marc Cherry, previously chief technology officer and chief operating officer of the company, will shadow Bozotti for one year before taking up the CEO’s post in 2018.
The leadership announcements was made alongside ST’s first quarter 2017 financial results. “Our objective for 2017 is to achieve sustainable revenue growth and margin expansion through our strategic focus on Internet of Things and Smart Driving. Our results in this first quarter are putting us on the right trajectory,” Bozotti said in a statement.
The company’s revenue was $1.82 billion, up 12.9 percent year-on-year. This helped drive net income of $108 million, which was flat sequentially, but compared with a loss in the same quarter a year before.
Of ST’s several product groups the stand out performer was Analog and MEMS Group (AMG), which increased revenues by 19.9 percent compared to the year-ago period. Microcontrollers and Digital ICs Group (MDG)n revenues increased year-over-year by 11.4 percent. Automotive and Discrete Group (ADG) revenues increased year-over-year by 5.6 percent. Imaging Product Division revenues in the first quarter more than doubled compared to the year-ago quarter driven by sales of time-of-flight sensors
By region of shipment sales in Asia-Pacific, Euroe and the Americas grew by 17.4, 8.0 and 5.7 percent respectively.
Next: Outlook
The company said it expects to improve net income in the second quarter as revenues increase about 5 percent on a sequential basis, representing an annual growth of about 12.3 percent at the mid-point of guidance. ST has previously said that it is expecting to enjoy the benefit of a major product ramp in the second half of 2017.
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