LONDON – Struggling joint venture ST-Ericsson NV (Geneva, Switzerland), which has been losing money since its formation in February 2009, announced a $1.53 billion gain in its fourth quarter financial results following debt forgiveness by its parent companies.
The fourth quarter results were prepared on the assumption that ST-Ericsson is a going concern but its parents in December 2012 announced the intention to find a "strategic" solution for the loss-making venture. ST-Ericsson took charges of $1.06 billion for impairment of goodwill and intangible assets.
ST-Ericsson announced net sales of $358 million for 4Q12, in line with the company's outlook, flat with 3Q12 and down 12.5 percent from sales of $409 million in 4Q11. The company made an adjusted operating loss of $133 million in the quarter.
The company also said he it expects a significant sequential decline in net sales in the 1Q13 on top of the usual first quarter seasonality. On a positive note, the company announced that the Samsung Galaxy SIII Mini is now powered by a NovaThor ModAp processor, making it the fourth Samsung smartphone to use the NovaThor platform.
In 4Q12, NovaThor ModAp shipments grew by 45 percent sequentially to 10.7 million units.
"As promised less than a year ago we also unveiled our newest chipset--the NovaThor L8580 ModAp--which is the first product to use FD-SOI technology and is the world's fastest and lowest power integrated LTE modem and application processor platform, confirming the disruptive nature of FD-SOI technology," said Didier Lamouche, CEO of ST-Ericsson, in a statement.