Feeds

STMicro sees profits soar on mobile phone frenzy

Pumps it up to $336 million for Q2

  • alert
  • submit to reddit

High performance access to file storage

Chipmaker STMicroelectronics saw net income more than double for the second quarter thanks to demand for mobile phones.

Profit for the period rose to $336 million for the three months ended 1 July 2000, from $122 million for Q2 the previous year.

This brought profit for the first six months of the year to $575 million, compared to $228 million a year earlier.

Sales soared 58 per cent to $1.88 billion - bringing the total for the two quarters to $3.5 billion, compared to $2.2 billion in 1999.

Gross margin for Q2 2000 increased to 46 per cent from 39.5 per cent.

The company's success stemmed from its concentration on chips for more lucrative markets, such as mobile phones and digital cameras.

Pasquale Pistorio, STMicro president and CEO, said: "The primary drivers of second quarter revenue growth were continued strong unit demand and improved product mix. Revenues also benefited from greater internal capacity and from a better pricing environment."

According to Pistorio, revenue increased "across all major product families and applications". The best jump in sales was in Consumer and Telecom Applications, which saw sequential revenue increases of 21.9 per cent and 12.3 cent, respectively. Standard and Commodities and Logic and Memories products saw sequential increases of 17.2 per cent and 14.7 per cent, respectively.

Pistorio remained upbeat regarding the future: "We continue to experience record incoming order rates and backlog levels, indicating that the market recovery remains robust and that ST's technologically-advanced product portfolio is well suited for next generation applications.

"Increasing order visibility leads us to expect that, despite traditional seasonal factors, third quarter revenues should show sequential improvement over second quarter levels. Additionally, we anticipate that the company's operating margin for the third quarter will be above the record level achieved in the second quarter of this year." ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.