said Tuesday it expects to report earnings in line with Wall Street's expectations for the first quarter, with a double-digit increase in revenue from the year-ago period.
The French-Italian semiconductor company said it anticipates earnings to match the
First Call/Thomson Financial
10-analyst consensus of 39 cents a share. In January, the company said it expected to earn 45 cents a share for the period. The company earned 26 cents in the year-ago period.
STMicroelectronics said it expects a double-digit revenue increase from $1.7 billion in the year-ago period, but it should not exceed $2 billion.
Shares of STMicroelectronics, which is based in Geneva, Switzerland, gained $2.15, or 6.9%, to $33.25 in regular session
New York Stock Exchange
The company said revenue has been hurt by the current market correction and that gains recognized from telecom and non-volatile memory products are expected to be offset by weakness in sales of digital consumer products and standard and commodity product lines.
STMicroelectronics said it has taken cost-cutting measures including a reduction in its capital expenditure plans for 2001 by $600 million, cost control programs, and a hiring freeze.