STMicro Posts $758 Million Second-Quarter Loss
Swiss chipmaker STMicroelectronics said Wednesday it fell to a loss in the second-quarter as restrucuring charges weighed on results.
The company also said it expects third-quarter sales to grow less than expected.
The net loss for the three-months ended June 30 was $758 million (548 million euros), or 84 cents (0.60 euros), compared with a profit of $168 million, or 18 cents, in the second quarter of 2006, the company said in a statement.
Excluding $906 million (655 million euros) in restructuring and impairment costs, the company would have earned $139 million (100 million euros).
Revenue for the quarter was $2.42 billion (1.75 billion euros), down 3% from $2.5 billion in the year-ago period.
On average, analysts expected second-quarter earnings of 15 cents per share on $2.43 billion (1.76 billion euros) in revenue, according to a Thomson Financial survey.
Shares in STMicro were down 4.7% at 13.06 euros ($18.07) in Paris trading.
STMicro also said it expects third-quarter sales to grow 2% to 7%.
The outlook implies third-quarter revenue of $2.47 billion to $2.59 billion (1.79 billion euros to 1.87 billion euros). On average, analysts expect third-quarter revenue of $2.54 billion (1.84 billion euros), a Thomson Financial survey said.
In the same period last year, the company posted $2.51 billion in revenue.
STMicro also projected gross margins of about 36%.