SAN JOSE, Calif. (AP) — STMicroelectronics’ net income leaped in the second quarter on a cash payment it received to settle litigation. But its revenue fell short of expectations as it warned of slowing demand for digital consumer products and of “much weaker than planned” demand from a major wireless customer.
The results, reported Monday, send shares down 51 cents, or 5.6 percent, to $8.60.
Net income was $420 million, or 46 cents per share, or 14 cents per share excluding items such as a $305 million settlement payment from Credit Suisse for an auction rate securities case.
Analysts expected 22 cents per share, according to a poll by FactSet.
A year ago, the company earned $356 million, or 39 cents per share.
Revenue was $2.57 billion, up 1 percent from $2.53 billion last year but below the $2.62 billion that analysts expected.
The company, which makes chips for a long list of different types of electronics, said it had better-than-expected results in its automotive, consumer and communications businesses. But analog chips and microcontrollers were “slightly” below expectations because of disruptions from the deadly March earthquake and tsunami in Japan and slowing demand.