Feeds

Infineon predicts Q3 profit surge

Dramurai rakes it in thanks to massive memory demend

  • alert
  • submit to reddit

Euro chip company and Siemens spin-off Infineon yesterday predicted a "significant" rise in its Q3 income, pushing its profits for the quarter way above the E300 million ($281 million) it had been expecting.

The company cited increased demand for memory chips and the rise in prices that that demand has generated as the key factor in its raised expectations. Such demand was always going to drive earnings up, it said, which is why it was already expecting Q3 to out-perform Q1 and Q2, both of which generate income of around E250 million ($234 million).

Infineon also said that it expects Q4's income to be higher still - provided memory prices continue to increase at their current rate, largely driven by supply shortages, though Infineon was careful not to mention that particular point.

One of the Seven Dramurai, Infineon derives around 30 per cent of its sales from memory chips. According to the Financial Times, analysts had anticipated a downturn in profitability thanks to problems Infineon may yet experience meeting demand, in turn due to the company's limiting of production capacity following the fall in memory demand and prices of the mid-90s. ®

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.