ST looking for partners for ST-E
STMicroelectronics is bringing in the time-scale it has set for ST-Ericsson to become profitable, says Philippe Lambinet, ST’s Chief Corporate Strategy Officer and General Manager.
Lambinet says that the ST-E April plan to terminate 1,700 people to get break-even down to $600m a quarter was predicated on a 2014 target.
“Now we think 2014 is a bit too far away,” says Lambinet, “and also $2.4bn (annual sales) is not such an easy target. Starting from $1.5bn last year moving up to $2.4bn billion is not an easy target in a tough market.”
With 2014 looking unlikely, Lambinet adds: “So the two shareholders have asked the management of ST-Ericsson to look at alternatives.”
“ST-Ericsson is looking for ways to accelerate to go back to breakeven and is looking for partnerships or any other form of deals with potential partners,” says Lambinet, “there are many scenarios on the table. Nothing is taboo.”
“The things the shareholders want is to find a way not to have to spend cash anymore as soon as possible,” says Lambinet, “and 2014 is a bit too far away.”