STMicroelectronics Posts Q1 Profit

Demand for products grew across the board.

STMicroelectronics NV posted a profit for the first quarter while revenue soared by 40%, as the economic recovery led to increased demand for its products across the board.

The chip maker, whose semiconductors go into automotive, consumer, computer and communications products, earned $57 million, or 6 cents per share, in the quarter. Excluding one-time items, the company earned $62 million, or 7 cents per share.

In the prior year's first quarter, STMicroelectronics lost $541 million, or 62 cents per share. Last year's loss was inflated by a $232 million loss on equity investments.

Revenue rose to $2.33 billion from $1.66 billion.

But the company's improved results nevertheless were below analysts' expectations, according to Thomson Reuters. They were expecting a profit of 8 cents per share and revenue of $2.4 billion.

Looking ahead, STMicroelectronics expects revenue to increase by 6% to 12% in the second quarter from the first quarter. That comes to $2.45 billion to $2.59 billion. Analysts were expecting $2.5 billion.

Copyright 2010 The Associated Press

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