SGS-THOMSON SGS-THOMSON MICROELECTRONICS 1996 EARNINGS INCREASE 19% ON 16% REVENUE GAIN
1996 Net earnings rise to $625 Million

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SGS-THOMSON Microelectronics NV
Consolidated Statement of Income

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

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Three Months EndedNine Months Ended
Dec.31, 1996Dec.31, 1995Dec.31, 1996Dec.31, 1995
Net sales 1053.8 966.9 4078.3 3520.7
Other revenues 5.1 7.8 44.1 33.7
NET REVENUES 1058.9 974.7 4122.4 3554.4
Cost of sales -657.0 -565.1 -2414.7 -2096.0
GROSS PROFIT 401.9 409.6 1707.7 1458.4
Selling, general & administrative -107.9 -119.0 -421.1 -413.2
Research & development -140.4 -128.4 -532.3 -440.3
Restructuring costs 1.2 -5.1 0.0 -13.0
Other income and expenses 32.1 28.3 45.1 59.1
Total Operating Expenses -215.0 -224.2 -908.3 -807.4
OPERATING INCOME 186.9 185.4 799.4 651.0
Net interest expenses -5.9 -2.1 -11.2 -16.8
Gain on disposal of investment 0.0 0.0 7.3 0.0
INCOME BEFORE INCOME
TAXES AND MINORITY INTERESTS

181.0

183.3

795.5

634.2
Income taxes -39.8 -15.7 -171.6 -108.3
INCOME BEFORE MINORITY INTERESTS
141.2

167.6

623.9

525.9
Minority interests 0.8 0.4 1.6 0.6
NET INCOME 142.0 168.0 625.5 526.5
EARNINGS PER SHARE 1.02 1.24 4.50 4.03
Number of weighted average shares*
used in calculating earnings per share

138.9

135.9

138.7

130.6
Number of shares* at end of period 139.0 138.2 139.0 138.2

* millions of shares

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INDEX | SGS-THOMSON SGS-THOMSON MICROELECTRONICS 1996 EARNINGS INCREASE 19% ON 16% REVENUE GAIN 1996 Net earnings rise to $625 Million | SGS-THOMSON Microelectronics NV - Consolidated Statement of Income | SGS-THOMSON Microelectronics NV - Selected Consolidated Financial Data | SGS-THOMSON Microelectronics NV - Consolidated Balance Sheets |