ST-Ericsson grows revenue but fails to shave net losses

Published:2012/7/18 1:30:00 Author:Ecco From:SeekIC

ST-Ericsson, a mobile chip designer, has grew its revenues but failed to shave net losses in its most recent financial quarter. The company is in the trouble to face the predicating flat sales for the coming quarter because of global economic and industry conditions.

According to a statement, ST-Ericsson focused on improvements in operating losses which decreased sequentially by $62 million to $235 million. It said the gains were the result of volume and margin improvements and cost cutting moves.

The design wins in several handsets including Samsung's Galaxy Beam and Ace 2, Sony's Xperia go and the Bambook from China's Shanda. That is the reason for revenue growth of ST-Ericsson. What's more, China Unicom and YuLong will use the company's NovaThor chips and Panasonic rolled out two Eluga handsets for the Japan market using ST-E modems.

By the end of last year, Didier Lamouche, parent company STMicroelectronics's chief operating officer, was named chief executive of ST-Ericsson in a shake up at the loss-making mobile chip venture with Ericsson. According to an announcement from Lamouche in April, he plans to cut 1,700 jobs or about 25 percent of the ST-Ericsson work force and transfer the application processors development team to STM, a task completed on July 1.

Observers indicated that they were impressed with Lamouche's plans and called for the company or parts of it to be sold off, ideally to a China-based chip maker.

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