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

Reducing security risks from open source software
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.
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.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.