ST-Ericsson Preparing To Be Lunch
Moving to take over as CEO of ST-Ericsson seems to have come as a bit of a shock to Didier Lamouche.
“We operate in a very dynamic, fast-changing market and a highly competitive environment,” says Lamouche in his latest quarterly report.
Quelle horreur! Most people know it’s a hard, cold, cruel world competing with Qualcomm, but Lamouche seems to think it worth mentioning as though it’s news to him.
Lamouche is now in a ‘winner takes everything’ world where you either ‘eat lunch or be lunch’. Lamouche is preparing to be lunch.
The Q2 net loss increased slightly on Q1 to $318 million. The company has run up $1.2 billion of debt since starting trading in early 2009. Cash flow in Q2 was negative $249 million. The company is losing $3.5 million a day.
On the plus side, ST-E says it has $2 billion worth of assets, but $742 million of that is accounted for by goodwill.
On the one hand, as Mike Bryant, CTO of Future Horizons, put it at IFS 2012, “ST-E should be wound up and its good engineers reassigned to addressing markets that STM excels at.”
On the other hand that kind-looking M. Hollande might simply wipe out ST-E’s debts and allow them to carry on ad infinitum.