Infineon loss narrows during Q3

Memory division back in the black

Infineon saw sales remain flat during its third quarter, the chip maker said yesterday, which led to its ninth consecutive loss-making period.

The company lost €116 million ($131 million) on sales of €1.47 billion, the latter much the same as Q2 but 11 per cent up on the Q3 2002. It's loss narrowed 64.6 per cent year-on-year, from €328 million.

Infineon's memory business contributed €569 million worth of sales to the company's bottom line, down seven per cent on the previous quarter - the result of the weak dollar - but up four per cent on the same period last year.

Those sales yielded a profit of €2 million, reversing last quarter's €138 million loss.

Looking forward, the company said it expects profitability to increase during Q4, driven by growing memory sales, particularly of high-end DDR products. Wireless chip shipments will grow too, but price pressure will limit revenue growth. ®