SAN FRANCISCO—STMicroelectronics NV Monday (Jan. 23) reported sales for the fourth quarter of 2011 that came up short of consensus analysts' expectations and the company's chief executive said order bookings hit the bottom of the current downturn.
"Based on current visibility, we believe bookings have bottomed," said Carlo Bozotti, ST's president and CEO, in a statement. He said he expects billings to bottom out in the first quarter.
ST reported fourth quarter sales of $2.19 billion, down 10 percent from the previous quarter and down 27 percent compared with the year-ago quarter. The company reported a net loss for the quarter of $11 million, compared to a net income of $71 million in the previous quarter and a net income of $219 million in the year-ago quarter.
ST's sales for the quarter came in with the company's guided target range, but slightly below consensus analysts' expectations, which called for sales of $2.23 billion, according to Yahoo Finance.
ST said its sequential revenue decline was due to sales declines in all the end markets the company serves. Sales to the industrial market declined by 14 percent sequentially, while sales to the computer market declined by 15 percent, ST said. Automotive sales declined 1 percent, telecom sales declined 4 percent and consumer sales declined by 5 percent, ST said.
For the year, ST reported sales of $9.74 billion, down 6 percent from 2010. The company reported a net income for 2011 of $650 million, down 22 percent from 2010.
ST said it expects sales for the first quarter to be between $1.97 billion and $2.1 billion, a decline of 4 to 10 percent sequentially. Consensus analysts' expectations had called for ST to post first quarter sales of $2.1 billion, according to Yahoo Finance.
ST said its expected revenue decline is due largely to a significantly weaker outlook for sales of its wireless products. The company said it expects its gross margin for the quarter to be between 31.5 percent and 34.5 percent, largely because of expected lower capacity utilization.
"Looking to the first quarter, we expect billings to bottom, as we see stronger than seasonal billings for ST’s wholly-owned businesses offset by a very significantly weaker revenue performance from ST-Ericsson," Bozotti said.
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