STMicro's loss widens in 2Q; revenue declines

Lower revenue, higher charges push STMicroelectronics into wider 2Q loss

Associated Press

Chip maker STMicroelectronics said Monday that its loss widened in the second quarter, hurt by lower revenue and increased one-time charges.

The Swiss company is in the process of winding down ST-Ericsson, its unprofitable joint venture with Swedish wireless equipment maker Ericsson. The move is expected to be completed early next month. Until then, STMicroelectronics continues to shoulder part of the cost of funding the joint venture.

For the three months ended June 29, STMicroelectronics reported a loss of $152 million, or 17 cents per share, compared with a loss of $75 million, or 8 cents per share, in the prior-year quarter.

Excluding the impact of impairment charges and restructuring costs, STMicroelectronics' loss amounted to 6 cents per share, the company said.

Revenue fell nearly 5 percent to $2.05 billion from $2.15 billion.

The company, which makes chips for a long list of different types of electronics, said macro trends remain uncertain.

Management noted that, outside of ST-Ericsson, its bookings improved in the second quarter before a softening of the smartphone market began having an impact on its own products.

U.S.-traded shares in STMicroelectronics ended regular trading down 6 cents at $9.79. They were unchanged in aftermarket trading following the release of the earnings report.

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