STMicro's revenue slides as wireless struggles

Reuters News
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Posted: Apr 23, 2012 5:19 PM
STMicro's revenue slides as wireless struggles

SAN FRANCISCO (Reuters) - European chipmaker STMicroelectronics posted lower first-quarter revenue as it restructures a struggling wireless business with partner Ericsson.

STMicroelectronics, which makes chips for cars, computers and mobile phones, posted a first-quarter sales drop of 8 percent to $2.02 billion from $2.19 billion the fourth quarter.

Analysts on average had expected first-quarter revenue of $2.02 billion, according to Thomson Reuters I/B/E/S.

ST Micro said current-quarter sales would rise 4.5 percent to 10.5 percent from the first quarter.

It had a first-quarter net loss of $176 million, versus net income of $170 million in the year-ago quarter.

(Reporting By Noel Randewich and Leila Abboud; Editing by Richard Chang)