Chipmaker ST Micro predicts 3 pct sales growth in Q3

Reuters

PARIS, July 23 (Reuters) - STMicroelectronics posted net revenue of $1.86 billion and a gross margin of 34 percent in the second quarter, helped by sales of chips for cars and industrial products.

Analysts had on average expected second-quarter sales of $1.89 billion, according to Thomson Reuters I/B/E/S.

It also returned to a net profit of $38 million, which was boosted by public funds for nanotechnology research in a programme called Nano2017.

The chip maker, which competes with larger U.S. and Asia-based companies like Texas Instruments, said it was targeting 3 percent sequential revenue growth and a gross margin of about 34.4 percent in the third quarter.

(Reporting by Leila Abboud and Gwenaelle Barzic; Editing by James Regan)

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