SAN JOSE, Calif. – STMicroelectronics NV (Geneva, Switzerland) reported a quarterly loss on revenue of $2.01 billion for the first quarter of 2013, however the company gave an outlook that second quarter revenues would grow sequentially and gross margin would improve.
The net loss attributable to ST was $171 million, mainly due its 50 percent share in the operating loss and restructuring costs for mobile chip company ST-Ericsson NV. This is joint venture that ST has announced its intention to withdraw from and by 3Q13. The first quarter loss compared with a loss of $428 million in the previous quarter and of $176 million in 1Q12.
"Excluding ST-Ericsson, our businesses delivered revenues better than normal seasonality despite the ongoing soft macro-economic environment, due to the strong performance of microcontrollers, power and smart power for industrial and automotive. We also achieved key design wins with leading customers for 28nm FD-SOI technology products and home-gateway applications," said Carlo Bozotti, president and CEO of ST, in a statement.
"While there is still a high level of market volatility and macro-economic uncertainties, bookings excluding Wireless, have continued to improve during the course of the first quarter. We are encouraged by this trend although we believe it is too early to assume this improvement is sustainable. In any case, we believe we are well positioned to outperform the market based on our new products within our five key growth drivers."
"Turning to the second quarter, in terms of revenue we expect broad-based growth in our businesses, excluding Wireless, driven by Imaging, Microcontrollers, Analog & MEMS products and leading again to better than seasonal revenue performance, with a sequential increase of about 7 percent at the midpoint. Including Wireless, we expect an overall revenue increase of about 3 percent at the midpoint of our guidance."
ST said it expects second quarter 2013 revenues to grow sequentially in the range of about 3 percent plus or minus 3.5 percentage points.