Troubled semiconductor manufacturer ST-Ericsson reported a loss of US$221 million in the quarter to 2 July 2011, compared with US$139 million in the prior year, on sales of US$385 million, down from US$544 million. Gilles Delfassy, president and CEO of the company, which is jointly owned by Ericsson and STMicroelectronics, said: “the lower second quarter revenue was substantially in line with our expectations. In the quarter we saw legacy product sales decline again sequentially contributing to a wider operating loss; however, we saw revenue from new products grow over the prior quarter, reaching about 45 percent of total sales.” Last month the company announced a cost-cutting plan, intended to deliver around US$120 million of annualised savings by the end of 2012.
Recommended for You
Be the first to know.
Subscribe to our newsletter today.
You'll gain exclusive access to breaking news, expert analysis, and in-depth features delivered right to your inbox.
Comments