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Chipmaker disappoints investors

17 февраля 2007
STMicroelectronics is blaming weaker-than-expected demand for its wireless chips as the reason the firm, whose clients include handset makers such as Nokia, Motorola and Sony Ericsson, had lower-than-expected revenues of $2.48 billion. Revenue for the quarter was down 1.2 percent from the third quarter. Nevertheless, annual revenue rose 11 percent to $9.85 billion.

The company says that instead of focusing on chips for low-cost handsets it will spend more energy on making 3G chip sets.

Analysts said that while the firm's results were disappointing, they were in line with some of the other wireless chip set firms such as Texas Instruments.



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