STMicroelectronics N.V. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. Fourth quarter net revenues increased 3.5% sequentially to USD 1.86 billion, 30 basis points above the midpoint of the Company's guidance. On a year-over-year basis, fourth quarter net revenues increased 11.5% on strong growth across most product families. Fourth quarter operating income was USD 129 million compared to USD 90 million and USD 25 million in the prior quarter and year-ago quarter. Fourth quarter operating income and operating margin before impairment and restructuring charges improved sequentially to USD 153 million and 8.2% of revenues, respectively, from USD 119 million and 6.6%, respectively, mainly due to higher revenues and gross profit partially offset by higher operating expenses. On a year-over-year basis, operating income before impairment and restructuring charges improved by USD 124 million mainly due to higher revenues, improved product mix, manufacturing efficiencies and fab loading. Fourth quarter net income was USD 112 million, equivalent to USD 0.13 per share, compared to net income of USD 71 million in the prior quarter and net income of USD 2 million in the year-ago quarter. Income before income taxes and non-controlling interest was USD 123 million against USD 20 million a year ago. Net cash from operating activities was USD 378 million against USD 245 million a year ago. Net payment for capital expenditures was USD 228 million against USD 89 million a year ago. Non-gaap net earnings were USD 137 million or USD 0.15 per share against USD 2 million or USD 0.00 per share a year ago.

Net revenues for the full year 2016 increased 1.1% to USD 6.97 billion from USD 6.90 billion in 2015. Net revenues, excluding businesses undergoing a phase-out (mobile legacy products, camera modules and set-top box), increased 2.4% with strong growth in specialized image sensors and solid growth in automotive and microcontrollers partially offset by market softness earlier in the year in both analog and power discrete sales for the computer peripheral market, and in MEMS sales for the smartphone market. Operating income increased substantially in 2016 to USD 214 million from USD 109 million in 2015. Similarly, operating income before impairment and restructuring charges also increased sharply to USD 307 million, compared to USD 174 million in 2015 reflecting favorable currency effects, net of hedging, manufacturing efficiencies, improved product mix, and lower operating expenses partially offset mainly by price pressure and lower R&D grants. Full Year 2016 net income increased 58% to USD 165 million, equivalent to USD 0.19 per share, compared to net income of USD 104 million, or USD 0.12 per share for the full year 2015. Income before income taxes and non-controlling interest was USD 201 million against USD 89 million a year ago. Net cash from operating activities was USD 1,039 million against USD 842 million a year ago.

Based on market forecasts, a positive booking trend, and a strong point-of-sales performance at distributors, the company see the momentum of the second half of 2016 to continue entering 2017. Based on these factors, the company expects first quarter to reflect better than normal seasonality, with a sequential net revenues decline of about 2.4% at the midpoint. On a year-over year basis, this would translate into a net revenues growth of about 12.5% at the mid-point. The company expects a gross margin of about 37.0% at the midpoint. The company expects first quarter 2017 revenues to decrease about 2.4% on a sequential basis, plus or minus 3.5 percentage points. Gross margin in the first quarter is expected to be about 37.0% plus or minus 2.0 percentage points.