Infineon posts Q3 loss
Chip sector quietly drowns in red ink
Infineon Technologies today posted a loss of 371 million euros ($322.58 million) for the third quarter, warning it would stay in the red for the rest of its fiscal year.
The loss for the three months ended June 30 compared to a profit of 266 million euros ($231.29 million) for the same period the previous year.
Sales at the German semiconductor maker dropped 30 per cent to 1.28 billion euros ($1.11 billion).
Infineon CEO Ulrich Schumacher said market conditions had deteriorated during the third quarter.
"Our balanced product portfolio did not help to ease the current weakness in the memory market any longer," he said. "This dynamic development and the magnitude of the current downturn, especially in communications, was not expected."
The company said there were no clear signs of the market recovering in the coming months, adding that it expected to post a loss for both the fourth quarter and for its financial year 2001.
"Market conditions for memory products remain difficult," the outfit said in a statement. "Weak demand, especially in the PC market, has led to significantly higher inventory levels at memory producers.
"Even though Infineon's inventory levels have stabilised towards the end of the quarter, the company expects a continued low price level for memory products during the next quarter." ®