STMicro (STM): Dear Nokia (NOK), Thanks for Nothing!
Tweet
Share
E-mailGet Alerts STM Hot Sheet
Join SI Premium – FREE
STMicroelectronics (NYSE: STM) had a rather weaker quarter, as reported yesterday, but may not be taking all the blame.
STMicroelectronics' CEO Carlo Bozotti commented in the release: "As anticipated, in this quarter we experienced headwinds related to the situation in Japan and currency rates, while continuing to face ST-Ericsson's ongoing transition. Additionally, in June, we saw weaker demand and a much weaker than planned outlook for wireless products from a major customer and we saw signs of softening demand in some of our businesses, such as digital consumer products and microcontrollers."
Later: "Entering the third quarter, we have moved quickly to lower production levels at certain fabs primarily due to the significant reduction in the demand outlook from a major customer compared to previous expectations."
As a matter of fact, the 'major' customer was mentioned several times throughout the release.
So who is the customer? According to reports today, it's none other than Nokia (NYSE: NOK). Nokia reported its first quarterly loss since 2009 on July 21st, but investors initially responded well to it's growth outlook.
Access STMicroelectronics earnings release here.
STMicroelectronics shares are 9.2 percent lower Tuesday following results.
STMicroelectronics' CEO Carlo Bozotti commented in the release: "As anticipated, in this quarter we experienced headwinds related to the situation in Japan and currency rates, while continuing to face ST-Ericsson's ongoing transition. Additionally, in June, we saw weaker demand and a much weaker than planned outlook for wireless products from a major customer and we saw signs of softening demand in some of our businesses, such as digital consumer products and microcontrollers."
Later: "Entering the third quarter, we have moved quickly to lower production levels at certain fabs primarily due to the significant reduction in the demand outlook from a major customer compared to previous expectations."
As a matter of fact, the 'major' customer was mentioned several times throughout the release.
So who is the customer? According to reports today, it's none other than Nokia (NYSE: NOK). Nokia reported its first quarterly loss since 2009 on July 21st, but investors initially responded well to it's growth outlook.
Access STMicroelectronics earnings release here.
STMicroelectronics shares are 9.2 percent lower Tuesday following results.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- BMO starts chip stocks coverage: Here are its preferred picks
- Bernstein SocGen on Meta Platforms Inc. (META): 'Risk-reward remains attractive'
Create E-mail Alert Related Categories
EarningsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
