STMicro posts lower first-quarter revenue, smaller loss
SAN FRANCISCO, April 28
SAN FRANCISCO, April 28 (Reuters) - STMicroelectronics posted lower first-quarter revenue and a loss that narrowed after the European chipmaker exited its mobile joint venture with ST-Ericsson.
Franco-Italian STMicro, whose chips are used in cars, computers and mobile phones, posted first-quarter revenue of $1.825 billion, down from $2.009 billion in the year-ago quarter.
Six analysts polled by Reuters on average had expected first-quarter revenue of $1.836 billion.
Its net loss in the first quarter shrank to $24 million from $171 million in the same quarter the year before. Its non-GAAP loss per share was 1 cent.
Last year, STMicro and telecom network gear maker Ericsson ended their money-losing joint venture to make chips for mobile phones. Since then, STMicro has refocused on product lines for automobiles, video game consoles, and high-end smartphones, but that move has yet to pay off in terms of higher profits.
Excluding legacy ST-Ericsson products, the chipmaker's revenue grew 1 percent in the quarter.
The company said its total revenue in the second quarter would rise 2 percent compared to the first quarter.
STMicro is the eighth-largest semiconductor maker by global sales but it has lost ground to rivals like Qualcomm, Intel and Samsung in recent years because of its higher cost base and difficulties suffered by Nokia, once its largest customer. (Reporting by Noel Randewich; Editing by Cynthia Osterman)