Mobile chipmaker ST-Ericsson, a joint venture of STMicroelectronics and Ericsson, yesterday posted a narrower quarterly net loss. The company reported third-quarter net losses of US$112 million, compared to a loss of US$213 million in the previous quarter. Net sales came in at US$728 million (up 9 percent from US$666 million in the previous quarter), fuelled by handset vendor demand for its U8500 product (claimed to be the industry’s first open OS 3G/HSPA single chip smartphone platform).
In a statement, the company noted it is “progressing on the target to become a solid and profitable leader in the wireless semiconductor market and will continue this challenge, led by the recognised competence and expertise of Gilles Delfassy who will assume the president and CEO position [in November].” The firm’s current head man, Alain Dutheil, stated that “while visibility on the medium term business environment remains poor, seasonal market trends are likely to be confirmed in the fourth quarter, where we expect Asia will again be one of the main drivers.” ST-Ericsson needs Asian markets to help generate growth, particularly China. Established in February, the plan was to create a large-scale European entity to compete with larger companies such as Qualcomm and Texas Instruments. The company is planning restructuring that will cut costs by US$230 million and reduce its roughly 8,000 workforce by 1,200. The plan is expected to be completed by the second quarter of next year.