Feeds

ST-Ericsson sees losses balloon

Boardroom musical chairs to stem flow

The essential guide to IT transformation

ST-Ericsson, now the second largest wireless chip maker, has managed to more than double its quarterly losses compared to last year, bleeding $165m over the last three months.

This is the first full quarterly result from ST-Ericsson - which was formed by STMicroelectronics and Ericsson in February this year to create a business second only to Qualcomm in the wireless chip industry - but the company calculates a pro forma loss of $69m for the same period of 2008.

Those figures are based on net sales bringing in $666m, compared to a calculated $966m last year. The company attributes that decline to destocking by customers, which it reckons is just about done. Also contributing to the loss is an an ongoing "cost synergies" program, which should be completed by the end of the year. In fact, when you take account of "acquisition-related intangibles" and "restructuring charges", the company only lost $213m, so that's OK then.

But at least the company is starting to have a coherent shape, with the work being split into three divisions based on technologies: LTE and HSPA headed up by Magnus Hansson, 3G Multimedia platforms run by Marc Cetto and everything else (2G, EDGE, TD-SCDMA, etc.) falling to Thierry Tingaud. We'd certainly want to be working in Mr. Hansson's team, being as he somehow managed to grab HSPA as well as LTE (most people would consider HSPA as an evolution of 3G, while LTE is in a generation of its own).

But ST-Ericsson has to focus on world markets, many of which are still looking to deploy 3G. The company is expecting great things from China, thanks to a development deal with China Mobile that is expected to see four companies deploying TD-SCDMA handsets, utilising chips from ST-Ericsson, over the next 12 months. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.