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

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.