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Infineon posts Q1 profit, raises outlook

Infineon posts Q1 profit, raises outlook

German semiconductor maker Infineon Technologies AG said Friday it was able to post a net profit for its fiscal first quarter due to an improvement in the market for technology products, and raised its outlook for 2010.
Infineon, based in Neubiberg, reported net income for the October-December first quarter of (EURO)66 million ($92 million) compared with a loss of (EURO)404 million in the year-ago period.
Revenue for the period increased 27 percent to (EURO)941 million from (EURO)742 million in the first quarter a year ago.
"Thanks to leadership positions in our target markets, we translated the general economic recovery into operating results for the first quarter which exceeded our original expectations," Peter Bauer, Infineon's chief executive, said in the report.
Bauer said especially automotive and industrial markets saw demand increase for Infineon's products, while products in the wireless solutions business also showed improvement. Wireless solutions makes products for telephones.
The company said the increase in revenues was due to the economic recovery, improved demand in the supply chain as well with end customers.
"Although uncertainties in the worldwide economy remain regarding developments in the second half of this fiscal year, we are raising our guidance for the full 2010 fiscal year. We are now looking for revenue growth in excess of 20 percent with a high single-digit combined segment result margin," Bauer said.
Infineon said the guidance is based on an exchange rate of $1.50 per euro. Infineon reported (EURO)3.03 billion in revenue in 2009.
Meanwhile, the company said it expects to make capital expenditures in the range between (EURO)220 million and (EURO)250 million in 2010, compared with (EURO)154 million in 2009.
Infineon had embarked on ambitious cost cutting measures over the last several years that included job and capital expenditure reductions, as the market for computer chips waned in the downturn.
Shares of Infineon were nearly unchanged at (EURO)3.90 in Frankfurt morning trading.
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On the Net:
http://www.infineon.com


Updated : 2021-04-17 23:48 GMT+08:00