Reports an operating loss of $171m in Q4 2010
ST-Ericsson, a joint venture of STMicroelectronics and Ericsson, has reported net sales of $577m for the fourth quarter of fiscal 2010, a decrease compared to $740m for the same quarter a year ago.
For the quarter ended 31 December 2010, the company reported an operating loss of $171m, excluding amortisation of acquisition-related intangibles and restructuring charges, compared to an operating loss of $139m for the same quarter of 2009.
The company posted a net loss of $177m, compared to net loss of $125m for fourth quarter of 2009. Restructuring charges totalled $24m in the fourth quarter, compared to $62m in the fourth quarter of 2009.
For the fiscal year 2010, the company’s net sales decreased to $2.3bn compared to net sales of $2.5bn for the previous fiscal year.
Operating loss for 2010 increased to $611m compared to $581m and net loss for 2010 increased to $591m compared to $539m for the previous fiscal year.
ST-Ericsson president and CEO Gilles Delfassy said sales in the fourth quarter came in line with their expectations, even slightly better.
"New products that started to sell in 2010, which represented more than a quarter of our total sales in Q4, became a bigger contributor to our revenue growing more than 50% sequentially," Delfassy said.
"Continued strong performance from our new 2G/EDGE platforms in addition to initial HSPA+ modem sales offset weakness in the TD-SCDMA market and the anticipated decrease in our legacy products."