Infineon slides in fiscal first quarter

Semiconductor maker Infineon Technologies AG is blaming poor market conditions, especially in the wireline communication and chip-card sectors, for the steep plunge it took during its fiscal first quarter. The company made a net loss of €331 million ($A546 million as of Dec. 31, the last day of the period being reported), compared to net income of €280 million posted during the same quarter a year ago, Infineon said in a statement Monday.

Revenue for the period, at €1.03 billion, marked a decline of 38 percent from the €1.66 billion in the first quarter of fiscal 2001. Per-share losses came to €0.48, compared to earnings per share of €0.45 for the year-ago quarter.

The company noted some bright spots in its business -- including "positive signs" in demand for mobile communication chips and a moderate price rise in memory products -- but did not predict a quick recovery.

"We should really have seen our revenue bottom out," said Executive Vice President and Chief Operating Officer Andreas von Zitzewitz during a conference call discussing the results. "We think that in the next quarter we should be able to increase revenue again. In wireless, we also see a modest recovery. It's very difficult to argue whether it's the market in general, or just Infineon, because we have some customers with very strong growth potential. .... We would expect that our wireless revenue continues to increase moderately."

The Memory Products group posted revenue for the quarter of €285 million, down 43 percent from the €497 million figure from the fiscal first quarter of 2001. Executives said there was strong demand during the most recent quarter, but that the price war in the DRAM (Dynamic Random Access Memory) industry had taken its toll.

DRAM prices increased in the quarter to an average of about US$2.20 per unit, over about $2.10 in the previous quarter, said von Zitzewitz.

The company's Wireless Solutions group saw first-quarter revenue of €206 million, down 41 percent from the €350 million posted in the same period last year. A modest boost was provided by a slight jump in demand for mobile handsets and by increasing sales of Bluetooth chipsets, the company said.

Infineon's Security and Chip Card ICs group reported quarterly revenue of €82 million, a decline of 47 percent from the year-ago figure of €154 million. The company attributed the drop mostly to lower sales of security controllers used in SIM (Subscriber Identity Module) cards for mobile phones, and to customers' ongoing inventory reductions.

Infineon's poor performance caused its former parent company, Siemens AG, to reduce its stake in the semiconductor maker to less than 50 percent, enabling Siemens to exclude Infineon's figures from its financial reports.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Rick Perera

PC World
Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?