Infineon back in the black in Q4
Not for the full year, though
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. ®