MANHASSET, N.Y. STMicroelectronics N.V.reported a net loss of $31 million, or 3 cents per diluted share, on sales of $2.1 billion, compared to net earnings of $77 million, or 9 cents per share, on sales of $2.0 billion in the year-ago quarter.
STMicroelectronics (Geneva, Switzerland) was adversely affected by restructuring costs of $78 million. Moreover, gross margins were dampened by increased pricing pressure and lower factory utilization rates.
During the quarter, STMicro saw Pasquale Pistorio hand over
the roles of president and chief executive to Carlo Bozotti. The company also abandoned
an effort to develop a second-generation GSM baseband chipset.
"ST is sharply focused on improving the competitiveness of the company," said Bozotti in a statement. "In addition to previously announced initiatives, we are undertaking several new actions designed to streamline our cost structure and strengthen our product portfolio, the two positive drivers of our gross margin."
The company is migrating a portion of its memory-wafer output to Asia in an effort to improve both fab loading and manufacturing cost structure. ST is also consolidating some general and administrative functions and closing several non-manufacturing sites.