Feeds

DRAM up, telecom chips down – Infineon

Big losses

  • alert
  • submit to reddit

Build a business case: developing custom apps

Infineon blamed a deteriorating market for telecom chips for a pretty awful quarter. An upturn in DRAM prices and demand was not enough to compensate for the depressed state of what the company calls "wireline communications".

But the performance of Infineon's memory products group shows that the company and DRAM market still has a long way to reach profit. Memory revenues in Q1 were Euro 285m, 18 per cent up on the previous quarter, but 43 per cent down on the same period last year. Earnings before interest and taxes were Euro 371m, better than the loss of E522m in the previous quarter (although inventory writedowns account for much of the latter figure). EBIT in Q1,2000 was Euro 66m.

Group sales for Q1, 2002 (ended December 31, 2001) were down five per cent on the previous quarter and 38 per cent down on the same period in FY2001.

The German chipmaker recorded a Q1 net loss of Euro 331m, better than the previous quarter loss of Euro 280m, but well down on net income of Euro 280m for Q1,2000. It attributes the loss "mainly due to continued price pressure". This includes erosion on memory prices from mid-November.

Presumably, the next quarter will see the company benefit more from the uptick in DRAM prices. And sure enough, Infineon detects the "first positive signs in demand for mobile communication products and pricing for memory products as well as relatively stable demand in chips for automotive and industrial applications".

But the performance of Infineon's memory products group shows that the company and DRAM market still has a long way to reach profit. Memory revenues in Q1 were Euro 285m, 18 per cent up on the previous quarter, but 43 per cent down on the same period last year. Earnings before interest and taxes were Euro 371m, better than the loss of E522m in the previous quarter (although inventory writedowns account for much of the latter figure). EBIT in Q1,2000 was Euro 66m. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.