Join        Login             Stock Quote

STMicroelectronics (STM) To Exit Ericsson JV; Shares Up

 December 10, 2012 10:41 AM

(By Balachander) STMicroelectronics N.V. (NYSE: STM), the European chipmaker, said it has decided to exit its loss-making joint venture (JV) ST-Ericsson.

The company, which disclosed a new strategic plan, said it is in talks on exit options for ST-Ericsson, STM's mobile chip JV with telecommunications company Ericsson.

"Today we are announcing the new ST, aligned with the new market environment," said ST CEO Carlo Bozotti. "Based on that, we have made the decision to exit ST-Ericsson after a transition period."

STM said it will continue to support ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider.

[Related -China Sets A Floor For Growth]

"This disengagement process has started, with the transition expected to end during the third quarter of 2013," STM said in a statement.

The company said its new financial model targets 10 percent or more operating margin.

STM said its new strategy is based on two product-segment organizations: Sense & Power and Automotive Products; and Embedded Processing Solutions.

The company expects both product segments to be profitable and to generate cash.

In addition, STM said it expects to reduce quarterly net operating expenses to an average quarterly rate in the range of $600 million to $650 million by the beginning of 2014.

U.S.-listed shares of STM rose 3.70 percent to trade at $6.72 on the NYSE on Monday.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.