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STMicroelectronics shares fall after 3Q results

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October 23, 2013 11:38 AM EST | AP


NEW YORK (AP) — Shares of STMicroelectronics NV took a hit on Wednesday after the Swiss chip maker posted lower revenue for the third quarter and called its financial performance "mixed" due to soft demand in Asia.

Late Tuesday, the company posted a loss of $142 million, or 16 cents per share, for the July-September period. That compares with a loss of $478 million, or 54 cents per share, in the 2012 third quarter. Excluding restructuring charges and other items, STM's loss would have been $23 million, or 3 cents per share.

Revenue fell 7 percent to $2.01 billion from $2.17 billion.

Analysts, on average, were expecting an adjusted profit of a penny per share, on revenue of $2.06 billion, according to FactSet.

STM said it saw revenue improve outside of its wireless product line. During the quarter, the company split up an unprofitable joint venture with wireless equipment maker Ericsson. That transaction closed in August.

On the other hand, STM said that this growth was "milder than expected" due to soft demand for high-end smartphones in Asia, as well as broader market issues in Asia.

U.S.-traded shares of the company fell 78 cents, or 9 percent, to $7.91 in midday trading. Shares are still up about 9 percent since the start of the year.