ST-Ericsson ups sales; reduces loss.
ST-Ericsson had Q2 net sales up 19% on Q1 at $344m for a loss of $235m which was $62m less than the loss in Q1. It expects Q3 sales to be about the same.
The increased Q2 sales ‘reflected a significant ramp of volumes of NovaThor platforms shipping to our major customers’, said ST-E.
The decreased loss was the result of volume and margin improvements due to new platforms and the first steps of the ongoing actions to reduce operating expenses.
“This has been a quarter of progress across the board,” said CEO Didier Lamouche, “we ramped our NovaThor ModAp platform with Samsung and Sony Mobile Communications and also added several new Chinese key players. We are executing in a timely manner our new strategic plan to reposition our whole business model and we finalised on July 1, as anticipated, the transfer of the application processors development team to STMicroelectronics to build a world class partnership.”
“We are advancing towards our objective to reduce our breakeven point and to reach sustainable profitability,” added lamouche, “during the quarter, all profit and loss metrics showed a sequential improvement: from revenue growth to gross margin expansion and from expense reduction to the decrease of our operating loss. While these indicators are encouraging, we recognize that further improvements in the execution of our critical programs are needed. Moreover, we operate in a very dynamic, fast-changing market and a highly competitive environment. In this context our primary focus is on delivering improvements of operating results and cash flow.”