Wednesday, January 25, 2006
STMicroelectronics reported lower net profit on as restructuring costs at Europe's second-biggest chipmaker offset higher sales driven mainly by wireless products.
Net profit in the fourth quarter was $183 million, or 20 cents per diluted share, compared with $187 million, or 20 cents a share, a year before.
That included $16 million of one-time items such as costs related to STMicro's protracted restructuring, which has seen the world's No. 7 chipmaker by sales cut staff, shift some production to Asia and invest more in research.
"The restructuring seems to be now paying off in slightly better revenue growth, better margins and I think they have products in most of their core markets that make them more competitive than in the past," said Cody Acree, an analyst with Stifel Nicolaus.
Fourth-quarter revenue was $2.39 billion, up from $2.33 billion a year earlier, driven mainly by wireless and data storage products, which both grew at double-digit rates.
By: DocMemory
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