SAN FRANCISCOSTMicroelectronics NV posted a net loss of $201 million on revenue of $2.28 billion for the third quarter, as sequential gains in revenue across all markets were not enough to push the company to profitability.
Revenue increased by 14 percent compared to the second quarter, but declined 16 percent compared to the third quarter of last year, ST (Geneva) said. The company's net loss narrowed compared with $318 million in the second quarter of $289 million in the third quarter of 2008.
On an adjusted basis, excluding charges, ST reported a net loss of $153 million, or 17 cents per share.
Consensus analyst estimates had called for ST to report revenue of $2.25 billion and an adjusted loss of 9 cents per share, according to Yahoo Finance.
On a sequential basis, revenue increased across all market segments, ST said, including growth of 21 percent in the computer segment, 18 percent in the automotive segment, 14 percent from telecom, 11 percent from consumer and 9 percent from the industrial segment. But sales declined year-to-year across all segments, the company said.
"We are encouraged as growth restarted in America and Europe and continued to be strong in Asia Pacific and Greater China," said Carlo Bozotti, ST's president and CEO, in a statement.
ST's inventory declined by $150 million in the third quarter, Bozotti said. The company will continue to focus on accelerated inventory turns, he said.
Bozotti said ST expects stronger-than-seasonal revenue growth of 5 to 12 percent, sequentially, for the fourth quarter. This would put the company's fourth quarter revenue between $2.39 billion and $2.55 billion. Consensus analyst expectations had called for ST's fourth quarter revenue to be about $2.41 billion, according to Yahoo Finance.
"We are confident the industry recovery is gaining momentum and that the worst of the economic crisis is behind us," Bozotti said. "However, we will continue to focus on our cost structure and developing and delivering innovative new products. We are encouraged by the progress we are making and expect to increase our competitiveness going forward, as a result."