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January 25, 2011, 1:59 AM EST
By Chiara Remondini
Jan. 25 (Bloomberg) -- STMicroelectronics NV, Europe’s largest chipmaker, forecast first-quarter revenue that may top analysts’ predictions, citing demand for chips used in three- dimensional televisions and computerized home appliances.
First-quarter sales will fall 7 percent to 12 percent from the preceding period, the Geneva-based company said in a statement yesterday. That implies sales of $2.49 billion to $2.64 billion. The midpoint is $2.57 billion, compared with $2.54 billion, the average estimate of analysts surveyed by Bloomberg.
“We expect to deliver above-market revenue growth accompanied by further year-over-year improvements in quarterly operating profitability,” Chief Executive Officer Carlo Bozotti said in the statement. “We are well positioned for success in our traditional and new growth markets, including energy savings, data security, health care and wellness as well as smart consumer devices.”
Bozotti’s comments reiterate an outlook issued in September, when he said that the company will grow faster than the market this year. Researcher Gartner Inc. projected Dec. 9 that worldwide semiconductor revenue will increase 4.6 percent this year to $314 billion.
Intel Corp., the world’s biggest chipmaker, forecast sales may rise 10 percent this year, Chief Financial Officer Stacy Smith said in an interview Jan. 13. Texas Instruments Inc., the second-largest U.S. chipmaker, reported a 44 percent gain in fourth-quarter profit yesterday.
STMicroelectronics forecast the first-quarter gross margin, the percentage of revenue left after subtracting manufacturing costs, will be about 39 percent, plus or minus one percentage point, from 39.9 percent in the fourth quarter. The forecast is based on an exchange rate of $1.32 to the euro.
--Editors: Robert Valpuesta, Tom Giles, Jillian Ward.
To contact the reporters on this story: Chiara Remondini in Milan at cremondini@bloomberg.net
To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net.
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Jan. 25 (Bloomberg) -- STMicroelectronics NV, Europe’s largest chipmaker, forecast first-quarter revenue that may top analysts’ predictions, citing demand for chips used in three- dimensional televisions and computerized home appliances.
First-quarter sales will fall 7 percent to 12 percent from the preceding period, the Geneva-based company said in a statement yesterday. That implies sales of $2.49 billion to $2.64 billion. The midpoint is $2.57 billion, compared with $2.54 billion, the average estimate of analysts surveyed by Bloomberg.
“We expect to deliver above-market revenue growth accompanied by further year-over-year improvements in quarterly operating profitability,” Chief Executive Officer Carlo Bozotti said in the statement. “We are well positioned for success in our traditional and new growth markets, including energy savings, data security, health care and wellness as well as smart consumer devices.”
Bozotti’s comments reiterate an outlook issued in September, when he said that the company will grow faster than the market this year. Researcher Gartner Inc. projected Dec. 9 that worldwide semiconductor revenue will increase 4.6 percent this year to $314 billion.
Intel Corp., the world’s biggest chipmaker, forecast sales may rise 10 percent this year, Chief Financial Officer Stacy Smith said in an interview Jan. 13. Texas Instruments Inc., the second-largest U.S. chipmaker, reported a 44 percent gain in fourth-quarter profit yesterday.
STMicroelectronics forecast the first-quarter gross margin, the percentage of revenue left after subtracting manufacturing costs, will be about 39 percent, plus or minus one percentage point, from 39.9 percent in the fourth quarter. The forecast is based on an exchange rate of $1.32 to the euro.
--Editors: Robert Valpuesta, Tom Giles, Jillian Ward.
To contact the reporters on this story: Chiara Remondini in Milan at cremondini@bloomberg.net
To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net.
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