Losses at ST-Ericsson deepened in Q4, though sales rose slightly. The loss for Q4 was $125m, compared with Q3's $112m, and revenue increased to $740m from Q3's $728m. ST-Ericsson blamed the increased loss on restructuring charges which were $62m in Q4 compared to $19m in Q3. The Q4 operating loss was $50m, compared to Q3's $77m operating loss.
In November 2008, ST-Ericsson's predecessor ST-NXP Wireless, cut operating expenses by $250m in an initial round of restructuring. That round of re-structuring has now been completed.
In April 2009, ST-Ericsson, which had absorbed ST-NXP Wireless and started operations in February 2009, said it would cut 1,200 jobs expected to save $230m in costs. The effects of this second round of restructuring 'have been in line with plans', said ST-Ericsson, 'and it is due to be completed by the second quarter of 2010.' 75b% of the savings from this programme are still to be realised,
In December 2009 it was announced that a further 600 jobs would be cut with the aim of saving a further $115m. This third programme has still to show any effect on cost reduction.
See also: Mannerisms, the blog of David Manners
ST-Ericsson reckons that the remaining costs associated with the ongoing restructuring plans of between $40m and $60m will be incurred within 2010 with further sums being booked ahead of future re-structuring pay-outs under the third re-structuring programme.
At the end of 2009, headcount was 7,900 including contractors working on-site. At last year's MWC an ST-Ercisson presentation said its headcount was 'about' 8,000.
Net cash was $229m at the end of Q4 - an increase of $13m - including a one-time payment of $53m from parent companies.
Inventory declined by $33m, reaching a level of $244m at the end of Q4.
"In the fourth quarter, we gained further momentum in one of the fastest growing markets, China, where we are the clear leader in its standard TD-SCDMA, having delivered more than 6.5m chip-sets by the end of December 2009", said CEO, Gilles Delfassy.
The company said it was addressing the netbook market mainly through Ericsson which has 'several customers' for netbook designs.