Chipmaker STMicroelectronics said it had narrowed its losses in Q3 to $201 million, as the worst effects of the economic crisis began to dissipate.
The result was an improvement both year on year and sequentially, and compares to losses of $318 million in Q2 and $289 million a year ago.
Revenue increased 14% sequentially to $2.27 billion. Just over 40% of STMicro's revenue came from the telecom industry.
Demand for chips within the telecom industry is beginning its climb back to pre-recession levels, with sales increasing by 14% sequentially. But with shipments down 8% year-on-year, it is clear that the market has not yet fully recovered.
Asia-Pacific showed the strongest growth in demand, and was the only region from which net revenue did not decline year-on-year.
“We are confident the industry recovery is gaining momentum and that the worst of the economic crisis is behind us,” CEO Carlo Bozotti said. He predicted sequential revenue growth of between 5% and 12% in Q4.
STMicroelectronics joint venture ST-Ericsson, which was spun off in February, narrowed its loss to $112 million compared to $213 million the quarter before. Revenue increased 9% sequentially to $728 million.
“While visibility on the medium term business environment remains poor, seasonal market trends are likely to be confirmed in the fourth quarter, where we expect Asia will again be one of the main drivers,” said CEO Alain Dutheil.
The company said during the quarter it had signed a top-tier manufacturer for its U8500 smartphone platform.