Feeds

Infineon sales slip - and will fall further

Sturm und DRAM

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.