ST Q2 sales fall, makes a loss, lowers capex, focussing on cost reduction.
STMicroelectronics is ‘focussed on delivering continued expense reduction’, said CEO Carlo Bozotti, after the company made a loss of $75m in Q2, compared to a profit of $420m in Q2 2011, on sales 16% down on Q2 2011 at $2.15bn.
ST said it would cut 2012 capex by 25% to $500m-$600m.
For Q3, ST is forecasting sales growth of 2-2.5% plus or minus 3%. last week Intel forecast 6% sales growth for Q3 which is traditionally the strongest quarter of the year.
ST’s shares have fallen 15% this year giving the company a market cap of $4.3bn which is less than half ARM’s market cap.
ST’s 2012 revenues look like being less than the $8.9bn revenues of 2005 which was the year Bozottie took over as CEO.