STMicroelectronics reports Q3 2012 results
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STMicroelectronics has reported a third quarter net loss of $478million, which it has attributed to the 'current weak demand environment' and its troubled wireless business.
On a sequential basis, Q3 net revenues increased 0.9% to $2.17billion and gross margin improved to 34.8%.
Carlo Bozotti, ST's president and ceo, pictured, said: "Our third quarter revenue and gross margin results delivered sequential improvements. Overall, the strength of our product portfolio enabled us to manage the current weak demand environment. As anticipated, we benefited from the revenue growth of our mems, microcontrollers, power mosfet and igbt businesses, which continue to expand into new applications and we continue to strengthen relationships with key market leaders, such as Audi and Samsung.
"We have already been taking a number of important steps to advance our key priorities. In December, we will present our new strategic plan which will accelerate the roadmap towards our previously announced financial model and ensure the future success of both our analogue and digital businesses and, therefore, of our company as a whole."
For the first nine months of the company's financial year, revenues were stated as $6.33bn, down by 16% from the $7.54bn reported for the same period in 2011. ST also reported a nine month loss of $1.35bn, compared to a $178m profit in the first nine months of 2011.
Looking to cut overheads, ST announced a plan which it says will save £150m a year. Included are 'efficiencies in process technology development' and a restructuring which 'might affect up to 500 jobs'.
In December, the company will present a new strategic plan that it hopes will ensure the future success of its analogue and digital businesses. However, persistent rumours claim the company will be broken up and essentially sold for parts.
