venture of STMicroelectronics and Ericsson, has posted $231 million loss in its
fourth quarter.
Net loss for the quarter has gone up to
$231 million from $177 million in the year ago quarter.
Net sales declined to $409 million from
$577 million in the prior year quarter.
The total debt of ST-Ericsson stood at $800
million.
The net financial position at the end of
the fourth quarter was negative $798 million. The sequential decrease was
mainly a consequence of the operating loss, partially mitigated by the
reduction of working capital, according to the official release.
Sales in the fourth quarter, excluding IP
licensing to a third party, grew 1.3 percent over prior quarter. The operating
loss reported for the fourth quarter was higher than the previous quarter.
ST-Ericsson expects a very significant
sequential decline in net sales for the first quarter 2012.
The company anticipates that the decline
could be resulting from a combination of higher inventory at some of company’s
customers.
The company added that this could further discourage
the legacy product sales.
“As the recently appointed CEO of
ST-Ericsson, my aim, and that of the entire organization, will be to ensure
that we meet all of our stakeholders’ expectations. As we ramp up our new
product portfolio and build a strong roadmap towards sustainable profitability,
our focus is to effectively deliver on timely execution of our strategic
programs and continue to proliferate design wins,” said Didier Lamouche,
president and CEO, ST-Ericsson.
