SAN FRANCISCO Buoyed by the favorable resolution of a tax claim, STMicroelectronics NV posted a net income of $276 million, or 30 cents per diluted share, on revenue of $2.48 billion during the fourth quarter of 2006, the company said Tuesday (Jan. 23).
Revenue for the quarter was down 1.2 percent sequentially, but up 3.9 percent year-to-year, the company said. Fourth quarter net income of $276 million was up 33 percent sequentially and up 51 percent year-to-year, the company said. The company benefited from the favorable resolution of a tax claim by approximately $90 million during the quarter, STMicro said.
For the full year, STMicro (Geneva) reported a net income of $782 millionnearly triple that of 2005 million on revenue of $9.8 billion, up 11 percent from 2005.
"Looking at the fourth quarter and near-term environment, the current market correction underway in some of the key applications we serve is more pronounced than forecasted," said Carlo Bozotti, STMicro president and CEO. "Our wireless results, in particular, came in well below historical seasonal revenue patterns and were also negatively impacted by product mix shift towards the low end, which put additional pressure on our margins and operating performance in the quarter."
STMicro said it expects to see sales for the current quarter decline 3 to 11 percent sequentially. The company said it is budgeting $1.2 billion for capital spending in 2007.