Wireless product revenue increased 49% to $518m
Chipmaker STMicroelectronics has reported a net loss of $541m for the first quarter 2009, compared to a net loss of $84m a year ago, on revenue down 33% at $1.7 billion. The company said there was significant weakness across most geographies and market segments.
STMicro made an operating loss of $393m compared to $88m last year. The net loss per share widened to $0.62 from $0.09 last year. Cash and cash equivalents at the end of the quarter was $1.5 billion.
It said ACCI (automotive/consumer/computer/telecom infrastructure) product revenue declined 40% to $627m, while industrial and multisegment product revenue fell 35% to $499m, and wireless product revenue increased 49% to $518m.
During the quarter the company discontinued manufacturing operations at its Ain Sebaa assembly plant in Morocco, and reduced headcount by 3,200 to reduce costs by over $700m in 2009. It also formed a wireless joint venture with Ericsson, ST-Ericsson, to develop products for mobile platforms.
Carlo Bozotti, president and chief executive at STMicro, said: The market environment during the first quarter was difficult, although our revenues and gross margin generally tracked to the plans quarter. ST’s position in the wireless core business has improved significantly as a result of ST-Ericsson February. We reduced our inventory levels by $184m. ST has returned to a net cash position from a net debt position.
Looking ahead to the second quarter, the company expects revenue in the range of $1.73 billion to $1.93 billion.