Feeds

Infineon posts Q3 loss

Chip sector quietly drowns in red ink

  • alert
  • submit to reddit

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." ®

Related Link

Infineon statement

Related Stories

Infineon raises $1.3bn
Infineon Q3 sales slump 30%
Infineon damages slashed

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.