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.