Feeds

Infineon back in the black in Q4

Not for the full year, though

  • alert
  • submit to reddit

Infineon returned to profitability during its fourth quarter, the chip maker said today, bringing a nine-quarter losing streak to an end.

During the three months to 30 September, Infineon garnered sales totalling €1.76 billion, a 37 per cent increase year on year and 19 per cent higher than the previous quarter's figure.

Net income for the period came to €49 million - rather better than the €560 million loss Infineon reported this time last year and the €119 million it lost last quarter. Earnings before income tax (EBIT) totalled €67 million for the period, compared to last quarter's EBIT loss of €116 million, and Q4 2002's EBIT loss of €295 million.

Infineon lauded rising DRAM prices, productivity gains and the money it made selling €60 million worth of ProMOS shares.

For the fiscal year as a whole, Infineon accrued revenues totalling €6.15 billion, up 26 per cent on last year's figure. Q4's positive income proved insufficient to lift the full-year figure: Infineon lost €435 million (60 cents a share) during 2003. In 2002, it was in the red to the tune of €1.02 billion (€1.46 a share). 2003's figure It includes a non-cash charge of €182 million to increase the deferred tax valuation allowance, compared to an allowance of €271 million established in the prior year.

Infineon's EBIT 2003 loss was €299 million, down from €1.14 billion the year before. It ended the year with cash and cash equivalents totaling €2.8 billion.

Infineon's memory business saw revenues rise 34 per cent sequentially and 75 per cent year on year during Q4 to €765 million. EBIT improved to €134 million, compared to €3 million in the previous quarter, and an EBIT loss of €204 million in Q4 2002. For the year as a whole, the Memory Products group achieved revenues of €2.49 billion, up 34 per cent from the prior year. The group significantly raised fiscal year 2003 EBIT to €31 million "a major improvement" from the €630 million loss it suffered the previous year. ®

Related Stories

Micron, Infineon battle for second place in DRAM chart
Infineon loss narrows during Q3

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.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.