ST’s Q4 net loss widens
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STMicroelectronics' Q4 net loss has widened to $428million from $11m, as it prepares to pull out of its ST-Ericsson joint venture.
Net revenue for the European chip maker fell to $2.16billion from $2.19bn a year earlier.
In a statement, the company said it was finalising its decision regarding strategic options, and expects to have funding requirements of around $300 to $500m during 2013 in connection with the transition and restructuring efforts.
CEO Carlo Bozotti (pictured) commented: "Important decisions were made in 2012 that are shaping a new, more focused, higher performing ST.
"This new strategy includes a sharper focus on five growth drivers: MEMS and sensors, smart power, automotive products, microcontrollers, and application processors. We are targeting an operating margin of 10% or more."
In Q1, Bozotti said ST expects its wholly owned businesses to deliver 'better than seasonal' revenue performance, with a sequential decrease of about 3% at the midpoint.
"Overall, ST will be a much stronger company with a re-sized cost base, sharpened product focus and stronger market position," he concluded.
