LONDON – STMicroelectronics NV, Europe's largest chip company, has reported a quarterly loss on revenue of $2.045 billion, for the second quarter of 2013. The revenue was below the mid-point of previous guidance for the quarter, and while it equated to 1.8 percent sequential growth, the company said it sees no sequential growth in revenue in the third quarter.
For most chip companies, the third quarter of the year usually displays the strongest sequential growth at about 8 percent on average. In strong years, percentage growth is often double-digit across the industry.
ST's net loss in the second quarter of 2013 was $152 million, down from the $171 million loss in the previous quarter but double the $75 million loss the company made in the same quarter a year before. The second quarter revenue of $2.045 billion was up 1.8 percent from the previous quarter's total of $2.009 billion, but down 4.8 percent from the same quarter a year before.
The company said that excluding its joint venture ST-Ericsson, which will close during the third quarter, it has seen an improvement in bookings, but that a softening in the smartphone market was impacting some ST products across its divisions.
ST forecasts that, excluding its wireless business, it expects net revenues to increase 3.5 percent sequentially in the third quarter, but with wireless included, overall revenues will be flat on a sequential basis.