STMicroelectronics is forecasting Q4 sales to be up 4.3 percent sequentially, to $2.33 million, at the higher end of its previous guidance range of flat to 5 percent growth.
The Geneva-based company released preliminary results for the quarter late on Monday. Full results will be issued on January 26.
Currency exchange rates and continued pricing pressure and lower than expected manufacturing utilization and performance at certain fabs hurt the company’s gross margin at the end of Q4, STMicro said in a statement. Another big contributor to lower than forecast gross margin was the weakening of the US dollar. Previous guidance was based on an average Euro to US dollar exchange rate of $1.23. The actual quarterly exchange rate was about $1.27.
SG&A and R&D expenses, as a percentage of sales, will be approximately flat with Q3 in spite of the currency impact, the company said.
Electronic News, a sister publication of EDNAsia
