Is ST Anticipating Massive Revenue Drop?
December 12, 2012
About the only solid fact in ST's restructuring plan is that it plans to reduce quarterly opex to $600-650 million by 2014 when it plans to be achieving a 10% operating margin compared to today's 2-3% operating margin.
Since ST's current quarterly opex is $900 million, a one third cut in opex represents a big cut in what ST does, and conventional wisdom says you can't cut opex too much without affecting what you do. And what you do determines your revenues.
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