SGS-THOMSON Microelectronics Reports 19% Increase In Second Quarter Revenues

SGS-THOMSON Microelectronics NV
Consolidated Statement of Income

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

	Three Months Ended		Six Months Ended
	June 29, 1996	July 1, 1995	June 29, 1996	July 1, 1995
Net sales	1039.7	872.0	2058.7	1640.5
Other revenues	7.7	6.5	16.3	16.6
NET REVENUES	1047.4	878.5	2075.0	1657.1
Cost of sales	(582.1)	(526.9)	(1168.5)	(978.7)
GROSS PROFIT	465.3	351.6	906.5	678.4
Selling, general & administrative	(103.1)	(99.8)	(209.2)	(190.5)
Research & development	(136.0)	(105.1)	(257.3)	(202.6)
Restructuring costs	0.3	(0.8)	(1.5)	(1.1)
Other income and expenses	(2.2)	11.8	6.6	15.2
Total Operating Expenses	(241.0)	(193.9)	(461.4)	(379.0)
OPERATING PROFIT	224.3	157.7	445.1	299.4
Net interest expenses	(1.6)	(5.1)	(2.1)	(8.0)
Gain on Disposal of Investment	0.0	0.0	7.3	0.0
PROFIT BEFORE TAX	222.7	152.6	450.3	291.4
Income tax	(46.9)	(30.1)	(99.7)	(62.0)
PROFIT BEFORE MIN. INTERESTS	175.8	122.5	350.6	229.4
Minority interests	0.3	0.1	0.5	0.1
NET EARNINGS	176.1	122.6	351.1	229.5
EARNINGS PER SHARE	1.27	0.95	2.53	1.78
Number of weighted average shares*	138.7	128.8	138.5	128.7
Number of shares* at end of period	138.8	129.0	138.8	129.0

* millions of shares