ST-Ericsson, a joint venture of STMicroelectronics and Ericsson, has reported net sales of $444m for the first quarter of fiscal 2011, a decrease compared to $606m for the same quarter a year ago.
For the quarter ended 2 April 2011, the company reported an operating loss of $149m, excluding amortisation of acquisition-related intangibles and restructuring charges, compared to an operating loss of $114m for the same quarter of 2010.
The company posted a net loss of $178m, compared to net loss of $154m for first quarter of 2010. Restructuring charges totaled to negative $4m in the first quarter, compared to negative $27m in the first quarter of 2010.
For the first quarter of 2011, inventory increased by $46m, reaching $321m, mainly due to the lower than expected sales during the quarter.
ST-Ericsson president and CEO Gilles Delfassy said revenue in the first quarter reflected normal seasonal trends but declined more than anticipated on a sequential basis due to a steeper drop in sales of their legacy products, which is not yet offset by sales of new products.
"Primarily due to these lower sales, our adjusted operating loss increased sequentially," Delfassy said.
"However, revenue from new products as a percentage of the total revenue grew again this quarter; we’ve also made further inroads with customers on our NovaThor family of products including the U8500 platform, which is on track."
For the second quarter 2011, the company expects net sales to decline sequentially, primarily due to the ongoing decline in legacy products.
