SGS-THOMSON Microelectronics Reports 7.1% Increase In Third Quarter Revenues

SGS-THOMSON Microelectronics NV
Consolidated Statement of Income

(in millions of US dollars, except per share data ($)

	Three Months Ended		Nine Months Ended
	Sept. 28, 1996	Sept. 30, 1995	Sept. 28, 1996	Sept. 30, 1995
Net sales	$ 965.7	$ 913.2	$ 3,024.4	$ 2,553.7
Other revenues	22.7	9.4	39.0	26.0
NET REVENUES	988.4	922.6	3,063.4	2,579.7
Cost of sales	(589.2)	(552.3)	(1,757.7)	(1,530.9)
GROSS PROFIT	399.2	370.3	1,305.7	1,048.8
Selling, general & administrative	(104.0)	(103.6)	(313.2)	(294.1)
Research & development	(134.5)	(109.3)	(391.9)	(312.0)
Restructuring costs	0.3	(6.8)	(1.2)	(7.9)
Other income and expenses	6.4	15.7	13.0	30.8
Total Operating Expenses	(231.8)	(204.0)	(693.3)	(583.2)
OPERATING PROFIT	167.4	166.3	612.4	465.6
Net interest expenses	(3.2)	(6.7)	(5.3)	(14.7)
Gain on Disposal of Investment	0.0	0.0	7.3	0.0
PROFIT BEFORE TAX	164.2	159.6	614.4	450.9
Income tax	(32.1)	(30.7)	(131.8)	(92.6)
PROFIT BEFORE MIN. INTERESTS	132.1	128.9	482.6	358.3
Minority interests	0.3	0.1	0.9	0.2
NET EARNINGS	$ 132.4	$ 129.0	$ 483.5	$ 358.5.
EARNINGS PER SHARE	$ 0.95	$ 1.00	$ 3.49	$ 2.78
Number of weighted average shares*	138.8	129.1	138.6	128.9
Number of shares* at end of period	138.8	129.2	138.8	129.2