Feeds

Infineon sales slip - and will fall further

Sturm und DRAM

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Memory maker Infineon saw earnings rocket during the first quarter of FY2005 despite modest sales gains.

Revenue for the three months to 31 December 2004 totalled €1.82bn ($2.4bn), down on the previous quarter's $2.6bn but higher than the year-ago quarter's $2.1bn.

Infineon blamed the sequential decline, which affected all of its business units, on the ongoing inventory correction that's troubling the whole semiconductor industry. The company restructured into three divisions - Communications, Memory, and Automotive, Industrial and Multi-market - though this structure didn't come into operation until after Q1 FY2005 was over.

Net income for the period topped €142m ($185.6), 223 per cent higher than the €44m ($57.5m) Infineon reported last quarter and 318 per cent up on year-ago earnings of €34m ($44.4m).

Earnings before income tax (EBIT) came to €211m (19 cents a share), up from €113m (six cents a share) in the previous quarter and €70 (five cents a share) in the Q1 FY2004.

However, the gains came from exceptional items: €118m ($154.1m) in licensing income from ProMOS in Q1 FY2005, compared to a €132m ($172.4m) "impact of impairment and antitrust related charges" in the previous quarter.

Without such gains and losses, Infineon's business units reported EBIT declines, thanks to "lower sales volumes and lower fab utilisation in the Secure Mobile Solutions and Automotive & Industrial segments", Infineon said. The company's results were also negatively impacted by the decline of the US dollar, it added.

Infineon expects the sales slowdown to continue. Q2 FY2005 revenues and sales will fall further thanks to "seasonal effects, pricing pressure in all of the company's application segments, and a further decline in demand as customers continue to adjust inventory". ®

Related stories

Infineon issues profit warning
Infineon accuses Rambus of 'litigation misconduct'
WTO backs Hynix over US DRAM duties
Four Infineon execs heading to jail on price-fixing charges
Infineon and ProMOS kiss and make up
Infineon pleads guilty to memory price-fixing
AMD, Infineon to spend $200m on nanotech know-how

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.