ST-E needs to double sales to break even
ST-Ericsson’s new break-even point will be reached when it has revenues of $600m per quarter, according to CEO Didier Lamouche.
In Q1 2012, ST-E’s revenues were $290m for a loss of $297m.
The expectation is that the lay-offs and transfers of people to STMicroelectronics will be saving ST-E $320m a year by the end of next year.
The cost of the lay-offs will be $130-150m.
ST-E expects 10% sales growth in Q2.
ST-E is heavily reliant on the success of its integrated modem/applications processor chip called NovaThor. Lamouche pointed out that “Timing for our next generation ModAp platform significantly delayed.”
Access to 28nm could be a big part of that.
ST-E seems to be expecting these ModAps to be put into FD-SOI with Lamouche putting up a foil saying: ‘NovaThor L8540 in FD-SOI would have operation up to 2.5Ghz, 2x the performance possible at 0.6V, and 35% less power operating at max performance of NovaThor L8540.’
These performance benefits which a ModAp ‘would have’ if made in FD-SOI would deliver, said Lamouche: ‘4 hours more high-speed browsing, 2.5 hours more HD video playback, 2 hours more HD video recording or an additional full waking day of use.’
Lamouche reiterated his earlier expectation that Q2 sales would be 10% up on Q1 and said the ‘early signs of recovery are visible.’