The conglomerate’s chip division produced operating income of 186 million euros ($228.9 million) in the third quarter to September 30, up from a loss of 191 million euros ($235 million) on revenue 10.8% higher at 1.4 billion euros ($1.76 billion). The company says that when revenue from mobile display systems, which fell by 10% in dollar terms as it focused on higher margins products, are stripped out, revenue increased by 31% over last year.
The book-to-bill ratio fell from 1.13 at the end of the second quarter to 0.66 due to shortening of the order book, though the utilization rate remained high at 98%. However Philips expects this to fall as customers reduce inventories.
The one bright spot in the coming quarter is that Philips expects double-digit sequential growth in its mobile display systems business.
