STMicro's revenue slides as wireless struggles

SAN FRANCISCO, USA: European chipmaker STMicroelectronics posted lower first-quarter revenue as it restructures a struggling wireless business with partner Ericsson.

STMicroelectronics, which makes chips for cars, computers and mobile phones, posted a first-quarter sales drop of 8 per cent to $2.02 billion from $2.19 billion the fourth quarter.

Analysts on average had expected first-quarter revenue of $2.02 billion, according to Thomson Reuters I/B/E/S.

STMicro said current-quarter sales would rise 4.5 per cent to 10.5 per cent from the first quarter.

It had a first-quarter net loss of $176 million, versus net income of $170 million in the year-ago quarter.