ST-Ericsson restructures amid further losses

ST-Ericsson has reported a Q2 net loss of $163m

Mobile platform and wireless chipmaker ST-Ericsson has reported a $163m (£98m) net loss for the second quarter of 2009, and announced the formation of a new organisation in an effort to better integrate its operations.

ST-Ericsson is a joint venture between Swedish handset firm Ericsson and Franco-Italian chipmaker STMicroelectronics, and is currently second in the mobile chip market behind Qualcomm.

Operating losses grew from $69m (£41m) in the second quarter of 2008, while net sales were $666m (£403m), down from pro-forma revenue of $966m (£585m) a year ago, but higher than the $562m (£340m) generated in the first quarter, the firm said.

"We will continue to drive the execution of our realignment and restructuring plans with a strong focus on providing our customers with solutions spanning all existing and next-generation access technologies," said ST-Ericsson chief executive Alain Dutheil.

The firm also announced a new organisation centred around three product areas as part of its ongoing efforts to integrate the operations of its two component parts.

The three areas are LTE and HSPA connected devices; 3G and multimedia platforms; and 2G, Edge, TD-SCDMA and connectivity.

"The new organisation we are announcing today will allow us to successfully execute on our new product strategy, based on the future convergence to one 3G roadmap, a continued commitment on 2G/Edge and connectivity, as well as a strong focus on TD-SCDMA and on fast growing next-generation access technologies such as LTE," said Dutheil.

"Additionally, it will enable us to complete the integration of the different businesses we merged five months ago, and provide our customers with a world-leading and even more compelling portfolio."