STMicroelectronics reports $75m loss in Q2
STMicroelectronics has reported a loss of $75million in Q2 2012, compared to a net income of $420m in Q2 2011. The company attributes the loss to joint venture ST-Ericsson, with ST president and ceo Carlo Bozotti saying there is 'substantial progress' to be made.
Net revenue for Q2 also fell 16% to $2.15billion from $2.57bn a year earlier.
"As we saw during the end of the second quarter, the global economic environment has weakened. As a result, bookings in June softened and remain somewhat volatile," commented Bozotti.
The company said that it expects improvement in Q3 due to new product momentum, including MEMs, microcontrollers and power mosfets. It is also focused on expense reduction and aims to cut its full year 2012 capital expenditures plan by approximately 25%.
"Overall, we will become a much leaner company with increased flexibility to adjust to market conditions and reduce our earnings volatility," added Bozotti.
