STMicroelectronics (STM) - Get Report on Monday announced preliminary fourth-quarter sales results of $2.33 billion, near the top of its target range, while gross margins slipped below its targets due primarily to the weak dollar.
The Geneva-based chipmaker reported sales and gross margin figures for its quarter ended on Dec. 31, but saved earnings results for Jan. 26.
Shares of STMicro closed the regular session up 26 cents, or 1.4%, to $18.56.
Sales tallied $2.33 billion, up 10% from sales of $2.11 billion in the same period last year, and up 4.3% from revenue of $2.23 billion in the third quarter. STMicro had predicted sequential sales between flat and 5% growth.
Gross margins tallied 36.6%, down from 37.4% in the third quarter and beneath the company's targeted range of 38% to 39%.
STMicro booked a euro-to-dollar exchange rate of $1.27 while it expected the dollar to trade at $1.23 to the euro. Price pressure and lower-than-expected factory use also hurt the company's margins.