Electronics Production | January 25, 2011

ST-Ericsson reports 4Q-net sales of USD 577 million

"Sales in the fourth quarter came in line with our expectations, even slightly better," said Gilles Delfassy ST-Ericsson president and CEO.
"New products that started to sell in 2010, which represented more than a quarter of our total sales in Q4, became a bigger contributor to our revenue growing more than 50% sequentially. Continued strong performance from our new 2G/EDGE platforms in addition to initial HSPA+ modem sales offset weakness in the TD-SCDMA market and the anticipated decrease in our legacy products.

Operating loss increased sequentially mainly due to higher operating expenses reflecting anticipated seasonality and currency effects, as well as price erosion due to the company's ongoing legacy product transition. Overall, 2010 was a pivotal year for ST-Ericsson, the CEO stated.

2010 Fourth quarter financial summary (unaudited)

The net financial position [2] at the end of the fourth quarter was negative USD 82 million, which compares to positive USD 39 million at the end of the third quarter. During the fourth quarter the company sold trade receivables without recourse, of which USD 166 million were outstanding at the end of the quarter, representing a sequential decrease of USD 13 million. Inventory decreased by USD 20 million reaching USD 275 million at the end of the fourth quarter.


For the first quarter 2011, the company expects net sales to decline sequentially, reflecting both the accelerating decline of legacy products and the effect of first quarter seasonality.


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