There is some familiar language in here, some interesting timing.
The position of the quote marks is important. It is a mixture of reporting facts and reporting conjecture...
Yahoo News
Franco-Italian chipmaker STMicroelectronics posted in-line 2016 results on Thursday, driven by solid phone and car part sales and improved factory utilization, while setting out a plan to boost plant capacity that could fuel revenue later in 2017.
Europe's third largest semiconductor company said it had won a deal with an unnamed customer that can generate "substantial revenues" in the second half of the year, which analysts believe are tied to parts for upcoming Apple iPhones.
The next generation iPhone 8 line is expected to be released by Apple in the back half of 2017.
Liberum analyst Janardan Menon said ST's latest results reflect demand from automakers and phones such as the Apple iPhone 7, including "time of flight" proximity sensors that also measure ranges between a phone camera and objects in its view.
"This is likely to be a new product in the iPhone 8, in addition to on-going shipments of the time-of-flight sensor," Menon advised clients. "We expect STM's strong revenue growth to convert into rising margins and further multiple expansion," he said, referring to factors justifying a higher stock price.
ST Chief Executive Carlo Bozotti declined to comment on who was behind the new customer contract. "We cannot say more," he told analysts on a conference call. "We cannot give more color." Apple demands suppliers never reveal its contracts.
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