STMicroelectronics reported financial results for the 2009 second quarter 2009. The net revenues total $1,993 million and include the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson and $18 million from the licensing of technology. Net revenues increased 20% sequentially reflecting an increase in demand across ST’s served market segments, as well as in all regions, with particular strength in China and Asia Pacific. Net revenues declined in comparison to the year-ago quarter in all market segments except Telecom, and in all regions except Asia Pacific, due to business conditions.

On a sequential basis, all market segments posted growth with Computer increasing by 36%, Automotive by 19%, Telecom by 14%, Industrial by 7% and Consumer by 1%. Distribution registered the strongest sequential improvement by 44% reflecting the better alignment of inventory to current demand levels and improving market conditions. In comparison to the year-ago quarter, performance was led by the 17% growth of Telecom driven by the NXP Wireless and ST-Ericsson wireless transactions. All other market segments decreased in the year-ago period with Computer down by 13%, Consumer by 33%, Industrial by 37%, and Automotive by 38%. Distribution decreased 36% reflecting a destocking of the channel and weak industry conditions.

ACCI’s (Automotive/Consumer/Computer/Communication Infrastructure Product Groups) second quarter net revenues increased 15% sequentially to $722 million. ACCI’s second quarter operating loss was $77 million, compared to a loss of $35 million in the first quarter period.

IMS’ (Industrial and Multisegment Product Sector) second quarter net revenues increased 19% on a sequential basis. IMS registered in the second quarter an operating loss of $16 million, compared to an operating profit of $12 million in the first quarter.

Wireless net revenues increased 25% sequentially to $650 million. For the second quarter of 2009, Wireless net revenues results reflected the complete integration of the former Ericsson Mobile Platforms business into ST-Ericsson.

Net sales growth in the second quarter was higher than normal seasonal patterns mainly due to increased demand in China, driven by TD-SCDMA, and in the rest of Asia-Pacific and to the alignment of inventory to demand levels across the handset supply chain. Wireless operating results in the second quarter of 2009 exclude $22 million in restructuring charges, as consolidated by ST. Net income attributable to noncontrolling interest of $109 million, including restructuring charges, mainly related to the ST-Ericsson joint venture, is posted below operating results in the Company’s Consolidated Income Statement.

For the 2009 second quarter ST reported a net loss of $318 million, compared to a net loss of $541 million and $47 million in the prior quarter and year-ago period, respectively.