Feeds

Infineon issues profit warning

Dollar doldrums

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Infineon expects first quarter revenues and earnings to fall below market expectations. In a profit warning yesterday, the German chipmaker blames client inventory build-up, which aggravated by the sharp decline of the US dollar.

The German chipmaker now anticipates earnings before tax and interest of €211m and revenues of approximately €1.82bn. This includes €118m from the settlement of a licence dispute with ProMOS, the company's former Taiwanese partner.

The profit warning follows hot on the heels of the collapse of the sale of its fibre-optic business to Finisar early this week and the sentencing of four of its executives for their part in a price fixing scheme in the DRAM (Dynamic Random Access Memory) chip market in December. Infineon was also ordered to pay a $160m fine for its role in stabilising DRAM chip prices. It may be forced to make additional payments to hardware makers who were affected by the price fixing.

The announcement also signals turbulence within the European semiconductor market which has been reeling from the weakness of the US dollar. On Monday, STMicroelectronics, Europe's biggest chipmaker, said its fourth quarter revenues were likely to come in at the higher end of its previous guidance, although gross margins would probably be lower than expected.

The Franco-Italian company forecast net revenues for the three months to 31 December of $2.3bn, 4.3 per cent higher than the previous quarter and at the high end of an earlier forecast. Gross margins are expected to come in at around 36.6 per cent, well behind its earlier guidance range of 38 percent to 39 per cent.

© ENN

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.