European chip vendor STMicroelectronics expects to grow faster than the market as a whole this year, after reporting a stronger than expected fourth quarter revenue performance.
Revenues in the quarter ending December 31 were $2.1bn, up 18.3% on the year. Wall Street had expected sales of $1.97bn. Net income was $144m, down from $161m the previous year. This delivered earnings per share of $0.16, in line with forecasts.
For the full year, revenues were $7.2bn, compared to the previous year’s $6.3bn, while net income was $253m, down from $429m.
The company put the better than expected fourth quarter performance down to solid order flows from key targeted segments, including those serviced by its analog products. It also saw a 44.9% sequential increase in flash sales.
However, STM’s profitability, while meeting expectations, did not grow in line with revenue. The Geneva-based company laid part of the blame for this on the currency situation.
S expects first quarter revenues of $2bn to $2.1bn, with gross margin of around 35%. It said the firm was hitting the New Year with good momentum, and expected to grow faster than the market as a whole.
This article is based on material originally published by ComputerWire