News Article
Infineon's Q1 results hit by market slowdown
Number one European chip maker Infineon Technologies AG has reported net income of euro 142 million on revenues of euro 1.82 billion for the first quarter of its 2005 fiscal year.
Number one European chip maker Infineon Technologies AG has reported net income of euro 142 million on revenues of euro 1.82 billion for the first quarter of its 2005 fiscal year.
Although net income leapt from euro 44 million in the previous quarter, revenues were down 9% sequentially, thanks to lower sales volumes in all the companys market segments.
The net income for the first quarter is also not so impressive when it is considered that it includes a one-off payment of euro 118 million as a result of a settlement with ProMos.
The 2004 fourth quarter net income was also distorted by the inclusion of a euro 132 million anti-trust related fine. When both of these factors are taken into account, the companys net income actually fell significantly in the first quarter - a point noted by Infineon chief executive officer and president Dr Wolfgang Ziebart.
"As anticipated in our outlook from the last quarter, we have seen a slowdown in most of our application segments, a further clear market weakening and lower customer demand during the first quarter. We have thus taken necessary measures to adjust inventory levels, which negatively impacted our first quarter results."
Ziebart said that the company was expecting a further decline in demand in the next quarter.
Infineon is Europes largest chip maker. It main markets are automotive and industrial, wireline communications and mobile solutions and memory products.
Although net income leapt from euro 44 million in the previous quarter, revenues were down 9% sequentially, thanks to lower sales volumes in all the companys market segments.
The net income for the first quarter is also not so impressive when it is considered that it includes a one-off payment of euro 118 million as a result of a settlement with ProMos.
The 2004 fourth quarter net income was also distorted by the inclusion of a euro 132 million anti-trust related fine. When both of these factors are taken into account, the companys net income actually fell significantly in the first quarter - a point noted by Infineon chief executive officer and president Dr Wolfgang Ziebart.
"As anticipated in our outlook from the last quarter, we have seen a slowdown in most of our application segments, a further clear market weakening and lower customer demand during the first quarter. We have thus taken necessary measures to adjust inventory levels, which negatively impacted our first quarter results."
Ziebart said that the company was expecting a further decline in demand in the next quarter.
Infineon is Europes largest chip maker. It main markets are automotive and industrial, wireline communications and mobile solutions and memory products.
