STMicroelectronics Q3 Profit Beats Estimates; Revenues Miss - Quick Facts

(RTTNews) - STMicroelectronics (STM) Wednesday reported a profit for the third quarter, compared with loss last year, as lower costs helped offset a revenue decline due mainly to the wind-down of ST-Ericsson. Profit topped analysts' estimates, while revenues fell short.

For the three months to September, the company reported net profit of $72 million or $0.08 per share, compared with a loss of $142 million or $0.16 per share a year earlier.

Profit, excluding certain items, of $0.13 per share bested the $0.05 consensus estimate of analysts polled by Thomson-Reuters. Analysts' estimates typically exclude one-time items.

Net revenues declined to $1.89 billion, from $2.01 billion last year, below the $1.92 billion Wall Street expected. Prior-year revenues included sales from ST-Ericsson.

For the fourth quarter, the company expects revenues to decline by 3.5 percent sequentially.

The company is planning to save $100 million in expenses by discontinuing its commodity camera module products, reinforcing imaging efforts on key customer projects, and combining DCG and IBP product groups to take advantage of synergies.

The company also said it is reviewing the implications to its process technology following announcements by Research Alliance partners.

STMicroelectronics expects the restructuring costs to be around $50 million.