ST-Ericsson reports financial results[1] for its first two months of operation
50/50 joint venture between Ericsson and STMicroelectronics started operations on February 2nd 2009, creating a new wireless-semiconductor industry leader
Net sales $391 million
Operating loss $98 million
$230 million of annualized savings expected from a new program of resources and operations re-alignment to reflect outcome of the integration as well as current unfavorable business environment
Continuous focus on innovation and strengthening of strategic partnerships with customers since the launch of the company in February 2009
Geneva - Switzerland - ST-Ericsson, a joint venture of STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ:ERIC), reported financial results for its first two months of operation from February 2nd 2009.
President and CEO Alain Dutheil commented: "Our sales development in the quarter reflects the broad-based economic downturn that has led to weaker consumer demand for handsets and put pressure on the overall wireless semiconductor industry.
Even in such a challenging climate, during the first quarter of 2009 we confirmed our number two position in the market, we renewed our focus on innovation and we strengthened our partnership with key customers.
We were the first to consolidate in our industry, creating a new global leader in wireless platforms and semiconductors, and we are currently executing on an alignment of our operations that will allow us to shape the long term success of the company, while creating a sustainable cost structure for the short and medium term.
A more efficient and integrated product strategy, based on the future convergence of our 3G roadmap and on our continued commitment on 2G/EDGE and connectivity, as well as a strong focus on next generation access technologies, will help us achieve our short and long term objectives and continue to offer our customers a complete and innovative portfolio of solutions."
Click to read full press release
Net sales $391 million
Operating loss $98 million
$230 million of annualized savings expected from a new program of resources and operations re-alignment to reflect outcome of the integration as well as current unfavorable business environment
Continuous focus on innovation and strengthening of strategic partnerships with customers since the launch of the company in February 2009
Geneva - Switzerland - ST-Ericsson, a joint venture of STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ:ERIC), reported financial results for its first two months of operation from February 2nd 2009.
President and CEO Alain Dutheil commented: "Our sales development in the quarter reflects the broad-based economic downturn that has led to weaker consumer demand for handsets and put pressure on the overall wireless semiconductor industry.
Even in such a challenging climate, during the first quarter of 2009 we confirmed our number two position in the market, we renewed our focus on innovation and we strengthened our partnership with key customers.
We were the first to consolidate in our industry, creating a new global leader in wireless platforms and semiconductors, and we are currently executing on an alignment of our operations that will allow us to shape the long term success of the company, while creating a sustainable cost structure for the short and medium term.
A more efficient and integrated product strategy, based on the future convergence of our 3G roadmap and on our continued commitment on 2G/EDGE and connectivity, as well as a strong focus on next generation access technologies, will help us achieve our short and long term objectives and continue to offer our customers a complete and innovative portfolio of solutions."
Click to read full press release
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