logo
Share SHARE
FONT-SIZE Plus   Neg

STMicroelectronics To Quit ST-Ericsson - Quick Facts

STMicroelectronics (STM) announced its new strategic plan, an outcome of a strategic review started over a year before, as the company witnessed major changes in the dynamics of the wireless market. Owing to the major changes in the dynamics of the wireless market, the company has decided to exit ST-Ericsson after a transition period and is currently in talks on exit options, while it would continue supporting ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider. This disengagement process has begun, with the transition expected to end during the third quarter of 2013.

According to Carlo Bozotti, President and CEO of ST, "The new ST will be more focused, leaner and better positioned to deliver value to our customers and our shareholders, targeting to rapidly achieve operating margins of 10 percent."

The company's new strategy is based on two product-segment organizations namely Sense & Power and Automotive Products; and Embedded Processing Solutions. ST said it would build on its position in Sense & Power, comprosing MEMS and sensors, power discrete and advanced analog products, and in Automotive Products, from powertrain to safety, and from body to infotainment. In Embedded Processing Solutions, the company would concentrate on the core of the electronics systems rather than on wireless broadband access.

ST would address an estimated $140 billion market in 2013 and has significant potential to grow and gain market share. Looking ahead, ST aims for an operating margin of 10 percent or more. Also, ST expects to reduce quarterly net operating expenses to an average quarterly rate in the range of $600 million - $650 million by the beginning of 2014, in order to achieve the new financial model.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
U.K. house prices dropped in June from May taking the annual growth to the lowest in two years, data from the Nationwide Building Society revealed Thursday. The annual increase in house prices moderated to a two-year low of 3.3 percent in June from 4.6 percent a month ago. Economists had forecast a 4.5 percent rise for June. PayPal has agreed to buy Xoom, a digital money transfer provider, for $890 million in cash. Following the announcement, Xoom shares jumped 22 percent in after-hours trade on the Nasdaq. Discount retailer Family Dollar Stores Inc., which is being acquired by rival Dollar Tree Inc., said Wednesday after the markets closed that its third quarter profit fell slightly from last year, due mainly to a higher effective tax rate. The company's quarterly earnings per share, excluding items, also came in below analysts' expectations.
comments powered by Disqus
RELATED NEWS
Trade STM now with 
Follow RTT