SAN FRANCISCO—Chip maker STMicroelectronics NV Tuesday (Oct. 26) reported revenue for the third quarter in line with consensus analyst expectations and said it expects further growth in sales in the fourth quarter despite softening of demand in some market applications.
ST's supervisory board also announced it would propose for shareholder approval the reappointment for a three-year term of Carlo Bozotti as the sole member of the company's managing board and it's president and CEO. The supervisory board also announced that Didier Lamouche, a board member since 2006, has resigned to join ST's management, where he will become chief operating officer of ST after a transition period, on Jan. 26, 2011.
Lamouche will replace Alain Dutheil, ST's COO since 2005, who has decided to retire after 27 years with the company, ST said. From 2004 until mid-2010, Lamouche served as chairman and chief executive officer of Groupe Bull, a global IT company, ST said.
ST (Geneva) reported third quarter revenue of nearly $2.66 billion, up 17 percent compared with the third quarter of 2009. The company reported a net income of $198 million for the quarter, down from a net income of $356 million in the prior quarter, but an improvement compared to a net loss of $201 million in the year-ago quarter.
ST reported an operating profit of $193 million for the third quarter, compared to a profit of $91 million in the prior quarter and a loss of $196 million in the year-ago quarter.
ST said it expects revenue for the fourth quarter to grow 2 to 7 percent, respectively. "Even though in the third quarter the level of bookings in certain market applications softened from the very high levels in prior periods, we are encouraged by the level of our backlog in the fourth quarter," Bozotti said.
ST achieved year-over-year sales growth of 29 percent in the Greater China-South Asia region, followed by a 27 percent increase in the Americas. Sales in Greater China-South Asia grew 5 percent sequentially with Japan and Korea seeing sequential growth of 9 and 7 percent, respectively, the company said.
In product segments, ST reported year-to-year growth of 43 percent in its Industrial and Multi-segment Product Sector, followed by growth of 29 percent in its Automotive/Consumer/Computer/Communication Infrastructure product groups, the company said.