­ST-Ericsson -- a joint venture of STMicroelectronics and Ericsson -- has reported a further decline in revenues of US$359 million compared to US$412 million a year ago, although it managed to slightly reduce its losses to US$190 million compared to US$211 million a year ago.

Didier Lamouche, President and CEO of ST-Ericsson said: "In the third quarter, we made further improvements on all the key metrics, thanks to our steady and timely progress in executing the new strategic direction we set in April."

"Although our losses remain large, we have succeeded in halving them in two quarters thanks to our progress in cost reduction and productivity improvements. As we enter the fourth quarter and we still have to face the further decline of the legacy portion of our business, we are encouraged by new design wins on leading phones,"

ST-Ericsson expects net sales to be approximately flat sequentially for the fourth quarter 2012.