News Article
Infineon's first quarter earnings to fall below expectations
German chip maker Infineon Technologies AG has announced that it expects revenues and earnings before interest and taxes (EBIT) in the first quarter of fiscal year 2005 to be below market expectations.
German chip maker Infineon Technologies AG has announced that it expects revenues and earnings before interest and taxes (EBIT) in the first quarter of fiscal year 2005 to be below market expectations.
The company has blamed the sharp decline in the US dollars value compared to the euro for the poorer-than-forecast figures.
The company is projecting revenues of euro 1.82 billion and EBIT of euro 211 million. These figures include a non-recurring license income of about euro 118 million in connection with a settlement with ProMOS.
Infineons automotive and industrial segment is forecast to make revenues of euro 452 million and an EBIT of euro 50 million. These lower-than-expected figures are partly due to the companys decision to reduce inventory levels, resulting in a decline in fab utilisation.
The firms wireline communications business is forecast to achieve revenues of euro 106 million and a negative EBIT of euro 29 million. Infineon says that the recent cancellation of the sale of its fibre optics business to Finisar has had no financial impact.
Results for the companys secure mobile solutions business are forecast to be in line with the outlook the company provided when it announced its fourth quarter results, revenues expected to hit euro 439 million and EBIT euro 2 million.
Revenues in the memory products segment are expected reach euro 766 million while EBIT is forecast to hit Euro 196 million. The company says that while bit production has slightly increased, shipments have declined due to an anticipated increase in inventory levels.
Infineon will report its 2005 first quarter figures on January 24, 2005.
The company has blamed the sharp decline in the US dollars value compared to the euro for the poorer-than-forecast figures.
The company is projecting revenues of euro 1.82 billion and EBIT of euro 211 million. These figures include a non-recurring license income of about euro 118 million in connection with a settlement with ProMOS.
Infineons automotive and industrial segment is forecast to make revenues of euro 452 million and an EBIT of euro 50 million. These lower-than-expected figures are partly due to the companys decision to reduce inventory levels, resulting in a decline in fab utilisation.
The firms wireline communications business is forecast to achieve revenues of euro 106 million and a negative EBIT of euro 29 million. Infineon says that the recent cancellation of the sale of its fibre optics business to Finisar has had no financial impact.
Results for the companys secure mobile solutions business are forecast to be in line with the outlook the company provided when it announced its fourth quarter results, revenues expected to hit euro 439 million and EBIT euro 2 million.
Revenues in the memory products segment are expected reach euro 766 million while EBIT is forecast to hit Euro 196 million. The company says that while bit production has slightly increased, shipments have declined due to an anticipated increase in inventory levels.
Infineon will report its 2005 first quarter figures on January 24, 2005.
