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EE Times-India > Manufacturing/Packaging

ST's wireless slump persists, losses of Rs.2,000 crore

Posted: 30 Oct 2012     Print Version  Bookmark and Share

Keywords:Wireless  ST-Ericsson  wafer fabs 

Sluggish overall demand and a write-down on its troubled ST-Ericsson wireless business marked STMicroelectronics's fourth straight loss as the company reported a loss of nearly Rs.2,717.39 crore ($500 million) in its third fiscal quarter.

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."

The net loss of Rs.2,597.83 crore ($478 million) came on revenue of Rs.11,793.48 crore ($2.17 billion), down 11 per cent from last year's third quarter. Revenue was up slightly from Q2's Rs.11,684.78 crore ($2.15 billion).

Bozotti is eyeing Rs.815.22 crore ($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 towards its previously announced financial model, taking into account the changed market environment. The company said it wanted the two pillars of its business, analogue 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 reorganisation of the company that may include a change of business model.

ST recently denied reports that it would break up the company.

- Brian Fuller
  EE Times

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