Semiconductor company STMicroelectronics NV (STM), Tuesday, reported a wider net loss for the second quarter, hurt by lower revenues amid the difficult economic conditions. The company also provided its third quarter forecast, with revenue expected to come in ahead of Street expectations.
The Geneva, Switzerland-based company posted a net loss attributable to parent company of $318 million or $0.36 per share for the second quarter, compared to a net loss of $47 million or $0.05 per share in the prior year quarter.
Excluding items, net loss on a non-GAAP basis was $243 million or $0.28 per share, compared to net income of $164 million or $0.18 per share in the year-ago quarter. On average, 7 analysts polled by Thomson Reuters expected the company to report a loss of $0.32 per share for the second quarter. Analysts' estimates typically exclude special items.
Second quarter net revenues declined to $1.99 billion from $2.39 billion in the same quarter last year. Five analysts had a consensus revenue estimate of $1.84 billion for the second quarter.
Earlier, the company expected to report second quarter net revenues of in the range of $1.73 billion to $1.93 billion.
Revenues from Telecom segment grew by 17%, due to the NXP Wireless and ST-Ericsson wireless transactions. However, other segments posted a drop in sales.
Revenues from Automotive declined 38%, followed by Industrial segment, which decreased by 37%, Distribution by 36%, Consumer by 33%, and Computer by 13% over last year, reflecting the global economic slowdown.
Automotive/Consumer/Computer/Communication Infrastructure Product Group or ACCI's second quarter net revenues decreased 34.4% to $722 million. Industrial and Multisegment Product Sector or IMS' net revenues fell 31% to $595 million.
Wireless net revenues soared 58.5% to $650 million. The company noted that the net sales growth was higher than normal seasonal patterns, due mainly to increased demand in China, and in the rest of Asia-Pacific.
Inventory was $1.45 billion at quarter end, down from $1.66 billion at March 28, 2009, due to sharply reduced fab loadings and an increase in sales. Inventory turns in the second quarter improved to 4.1 turns from 3.8 turns in the year-ago quarter.
During the second quarter, the company said that its cost realignment initiatives were focused on completing the phase-out of wafer manufacturing operations in Carrollton, Texas, the ongoing reduction in workforce programs and the announced cost reduction actions at ST-Ericsson.
In conjunction with these efforts, ST incurred second quarter restructuring and impairment charges of $86 million, compared to $185 million in the year-ago quarter.
For the first half of 2009, ST reported a net loss of $860 million or $0.98 per share, compared to a net loss of $131 million or $0.15 per share in the previous year period.
Net revenues for the year-to-date period decreased 25% to $3.65 billion from $4.87 billion in the year-ago period.
Looking ahead, ST anticipates recording solid sequential revenue growth in all market segments and geographies.
For the third quarter, the company anticipates revenue of $2.07 billion to $2.27 billion, representing a growth of 4% to 14% sequentially. Analysts currently project revenue of $2.02 billion for the third quarter.
Gross margin is expected to be 31% of sales, plus or minus two percentage points.
Among others in the industry, Dallas, Texas-based Texas Instruments Inc. (TXN) reported second quarter earnings that fell 56% from last year, hurt by lower revenue and gross margins. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations. The company also forecast third quarter earnings above analysts' current consensus estimate.
STMicroelectronics closed Tuesday's regular trading session at $7.54, down 11 cents or 1.44%, on a volume of 1.38 million shares. In the after-hours, the shares further lost 24 cents or 3.18%.
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