UPDATE 1-ST Microelectronics profit misses Street expectations

* Q4 EPS ex-items loss of 4 cents vs Street view 2.2 cents

* Q4 revenue $2.58 bln vs Street view $2.56 bln

* Sees Q1 rev decrease between 7 pct and 13 pct from Q4

PARIS/SAN FRANCISCO, Jan 26 (BestGrowthStock) – Top European computer
chip maker STMicroelectronics NV (STM.PA: ) posted on Tuesday
better-than expected fourth quarter sales but warned of weakened
demand in the first quarter.

STMicroelectronics recorded revenue of $2.58 billion and a
gross margin of 37 percent, both slightly ahead of expectations.

Analysts had been expecting fourth quarter sales of $2.56
billion and a gross margin of 36.55 percent, according to Thomson
Reuters StarMine.

The chip maker was also expected to post a slender profit of
2.2 cents per share. It posted a loss of 4 cents per share as its
cost of sales increased nearly 12 percent from the previous year
to $1.63 billion.

The Franco-Italian chip maker, whose chips are used in
everything from cars to mobile phones and DVD players, reported
its full-year results after strong earnings from rivals Texas
Instruments Inc (TXN.N: ) on Monday [ID:nN25194319] and Intel Corp
(INTC.O: ) earlier in January. [ID:nN15228962]

For the year 2009, STMicroelectronics had predicted that the
global market for chips would contract 17-18 percent.

STMicroelectronics said it expected net revenues in the first
quarter to decrease 7 percent to 13 percent from the fourth
quarter, which the company said is in-line with historical
trends.

ST-Ericsson, a joint venture between STMicroelectronics and
Ericsson (ERICb.ST: ) that makes chips for mobile phones, posted a
narrower fourth quarter loss on Friday. [ID:nLDE60L068]

Stock Investing

(Reporting by Leila Abboud in France and Ian Sherr in San
Francisco; Editing by Phil Berlowitz)

UPDATE 1-ST Microelectronics profit misses Street expectations