April 22, 2004 – Franco-Italian chipmaker STMicroelectronics, Geneva, Switzerland, reported 1Q04 earnings of $77 million, including a $33 million charge to restructure its 6-in. operations, compared with $144 million in 4Q03 and $79 million a year ago. Revenues were $2.03 billion, down 4% sequentially but up 25% year-on-year.

With orders expected to remain strong throughout the year, CEO Pasquale Pistorio said the company would boost its capital spending to $2.2 billion, up from $1.6 billion, two-thirds of which will be used toward leading-edge technologies and R&D. Despite only a 0.4% rise in gross margins in the quarter, Pistorio said he’s “never been more confident” that the company will hit or even exceed its target of 40% margins by the end of the year, according to Reuters.

STMicro projected 2Q04 revenues would increase 6%-12% sequentially and 26%-33% year-on-year, with 37% margins.