PARIS In a commentary of financial results for the first half of fiscal year 2009, European chipmaker STMicroelectronics NV (Geneva, Switzerland) expressed optimism as it expects demand to recover in the second half of 2009.
The semiconductor company published net revenues of $1,993 million in the second quarter of 2009, up 20 percent sequentially while five analysts had consensus revenue estimate of $1.84 billion for the quarter.
And, for the third quarter of 2009, ST expects revenues to be between $2.07 billion to $2.27 billion, up sequentially between 4 percent and 14 percent.
"As we enter the third quarter, we are encouraged as our backlog, including frame orders, is higher than it was when we entered the second quarter of 2009,'' stated Carlo Bozotti, ST's president and CEO.
At an analysts' conference on (July 29), Bozotti explained that early booking indicators for the fourth quarter are positive. He, however, expressed vigilance as the global economic situation remains uncertain.
He declared: "The numerical indicators we have in our backlog are very positive. We have good indicators for the fourth quarter. Still, we are leaving a major crisis so we remain cautious and we want to be careful on our inventory and are ready to adjust loading down if necessary in September. The risk we see is more a correction in Asia, [notably] in China, Taiwan and Korea, because the recovery was very fast. In the case this comes, we will rapidly adjust our loading because we are strongly committed to move on with inventory reduction. This is the concern."
Bozotti confirmed: "If we look at all the indicators today, our backlog for the fourth quarter is substantially up."