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Losses mount at ST on wireless slump
Brian Fuller
10/24/2012 8:25 AM EDT
SAN FRANCISCO-- STMicroelectronics lost nearly $500 million in its third fiscal quarter thanks to sluggish overall demand and a write-down on its troubled ST-Ericsson wireless business. It was the company's fourth straight quarterly loss.
The net loss of $478 million came on revenue of $2.17 billion, down 11 percent from last year's third quarter. Revenue was up slightly from Q2's $2.15 billion.
[Get a 10% discount on ARM TechCon 2012 conference passes by using promo code EDIT. Click here to learn about the show and register.]CEO Carlo Bozotti said: "Our
Wireless segment delivered strong progress during the third
quarter; however, the segment's operating loss and negative cash
flows still remain significant."
Bozotti is eyeing $150 million in annualized savings by the end of 2013, and said the company will unveil its new strategic plan in December. The goal of the strategic plan, first outlined in September, would be to accelerate the company's road map toward its previously announced financial model, taking into account the changed market environment. The company said it wanted the two pillars of its business, analog and digital ICs, to become sustainable segments of ST as quickly as possible.
That news came followed ST's announcement that it was planning production stoppages at its wafer fabs in Crolles, France, and Catania, Italy, amid reports that Bozotti will soon announce a reorganization of the company that may include a change of business model.
ST recently denied reports that it would break up the company.Related stories:
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