Infineon makes profit shock

IPO set for Feb/March 2000

Siemens' spun-off semiconductor operation Infineon scored itself a $22.75 million profit for its latest fiscal quarter, ended 30 June. The division recorded sales of $1.25 billion. And Infineon is now set for a February/March 2000 IPO, according to Siemens CFO Heinz-Joachim Neuberger. Infineon has been well known for its overall inability to make money -- it's one of the reasons Siemens decided to spin the operation off in the first place. Indeed, for the nine months to 30 June, the company lost $34.5 million, sales of $3.35 billion. This period marks the only time Siemens has released separate results for Infineon, a move made earlier this year to comply with the US Securities & Exchange Commission. Infineon's new-found profit-making status probably explains the new IPO date. Earlier hints from Siemens and Infineon senior execs suggested the company was looking at this Autumn, though with a cautious "no sooner than October", just in case. Neuberger also said Siemens would float off its passive components business early Q4 1999. ®

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