STMicro expects to hit its Q4 numbers despite slowdown at other companies
By Mark LaPedus
Semiconductor Business News
(12/12/00 08:25 a.m. PST)
SEDONA, Ariz. -- Don't expect any financial surprises from STMicroelectronics Inc.--at least for now. While many chip makers are lowering their forecasts for the fourth quarter of 2000, officials with STMicroelectronics said the European semiconductor supplier it is still on track to hit its numbers in the three-month period, ending Dec. 31.
But given the fact that there is uncertainty in the overall market, the company remains cautiously optimistic about the quarter. "There are some concerns," said Richard Pieranunzi, president and chief executive of STMicroelectronics' U.S. operations. "The bombs are dropping all around us, and we might hit with some shrapnel."
In an interview on Monday during the start of the company's technology conference here, Pieranunzi declined to give a detailed financial forecast for the fourth quarter. "There are still three more weeks left in the quarter, but we don't expect any surprises at the last minute--at least for now," he responded.
Financial analysts project that STMicroelectronics will earn $0.49 per share for the fourthquarter. In the fourth quarter of last year, it reported a profit of $184.3 million, or $0.62 a share, on sales of $1.5 billion.
For some time, STMicroelectronics has been growing faster than the industry average. And given the company's broad product portfolio, it is not as exposed to the cyclical nature of the semiconductor business, as compared to many of its competitors, analysts said.
In fact, ST has grown 55% in the last three quarters, which is faster than LSI Logic, Texas Instruments, among other companies, Pieranunzi said.
ST is still experiencing strong demand for its chips in several product sectors, such as automotive, cellular phones, networking equipment, and set-top boxes, he said. The company is also locked into some large and key OEM accounts: Alcatel, Nokia, and Nortel, he said.
"The flash memory market is still strong," he said. "And if you look at the discrete IC market, we are experiencing strong demand. But the standard linear chip market is starting to loosen up." |
