STMicroelectronics has reported net revenues of $1.99 billion for the second quarter of fiscal 2009, compared to net revenues of $2.39 billion for the same quarter in the prior year. The company said that the net revenues declined in comparison to the year-ago quarter in all market segments except Telecom, and in all regions except Asia Pacific, due to business conditions.
For the quarter, the company reported operating loss of $428m, compared to operating loss of the $26m in the same quarter in the prior year.
The company reported net revenues of $3.65 billion for the first half of 2009 as compared to $4.86 billion as compared to the same period in the prior year. Net revenues for the first half of 2009 decreased 25% over the year-ago period due to weak industry conditions that more than offset the net impact of M&A transactions.
For the first half of 2009 the company reported an operating loss of $821m as compared to $114m in the same period of the prior year.
During the second quarter, the company’s cost realignment initiatives were focused on completing the phase-out of wafer manufacturing operations in Carrollton, Texas, the ongoing reduction in workforce programs and the announced cost reduction actions at ST-Ericsson.
Carlo Bozotti, president and CEO of STMicroelectronics, said: “As we enter the third quarter, we are encouraged as our backlog, including frame orders, is higher than it was when we entered the second quarter of 2009. Based on current booking activity and visibility, we expect to register solid sequential revenue growth in all market segments and geographies.
“Additionally, we expect our gross margin to increase sequentially due to partially recovered operating efficiencies, an increase in fab utilization to about 75%, still leading to some further reduction in inventory, and an improved product mix.”
