Europe's biggest chipmaker

STMicroelectronics

(STM) - Get Report

said it expects fourth-quarter revenue to decline below previous forecasts because of a slowdown in billings and demand.

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The company said it now expects fourth-quarter revenue of between roughly $2.2 billion and $2.35 billion, as compared with $2.7 billion in the prior quarter, or a decline of about 12.8% to 18.4% sequentially.

"The revised revenue outlook is the consequence of a recent slowdown in the billings, recent and substantial changes in customers' demand and order push-outs for the month of December," the company said in a press release Friday. "This situation reflects the well-known weaknesses in the industry, across most geographies and market segments, and, in particular, in wireless, automotive, and computer peripherals."

STMicroelectronics said it plans to further reduce manufacturing activity and sourcing from third-party suppliers. Gross margin for the fourth quarter is expected at about 38%, plus or minus one percentage point.

The company also said it continues to "aggressively implement" cost-control initiatives.

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