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STMicroelectronics NV said Thursday that third-quarter net profit fell, but turnover exceeded its expectations.
The European chip maker STM, -2.84% made a profit of $302 million compared with $369 million the year before, on revenue that rose 1.2% to $2.55 billion. Its gross margin was 37.9%, it said.
The company said revenue increased 18% quarter on quarter. Previously, it had guided for a 15.3% sequential increase in quarterly revenue at the mid-point.
Increased sales in the imaging, analog, power discrete and microelectromechanical systems segments were largely offset by softness in the digital integrated circuits, automotive and microcontrollers markets, STMicroelectronics said.
Looking ahead, the company guided for a sequential increase in fourth quarter revenue of around 5% at the mid-point, with a gross margin of about 38.2%. Full-year net revenue is expected to be $9.48 billion at the midpoint, with a double-digit operating margin performance.
