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Infineon Technologies returns to profitability in 1Q

Infineon Technologies returns to profitability in 1Q

Chipmaker Infineon Technologies AG reported a return to profitability in its first quarter as higher earnings at its memory chip business offset losses at its wireless chip business.
The Munich-based company reported a net profit of euro120 million (US$154.81 million) for the first quarter, up from a net loss of euro183 million in the same quarter last year, beating analysts' forecasts.
Analysts polled by Dow Jones Newswires had expected net profit of euro100 million (US$129.01 million) on sales of euro2.28 billion (US$2.94 billion).
Sales in the three months to Dec. 31 rose 27 percent to euro2.12 billion (US$2.74 billion).
Infineon, one of Europe's largest chipmakers, said that it expects fiscal second-quarter sales and earnings before interest and taxes to be at least at the same level as the first quarter, excluding its memory chip business.
"In a challenging operating environment, results for the first quarter came out better than originally expected," CEO Wolfgang Ziebart said in a statement.
He said the company expected to return to revenue growth in its automotive, industrial and multimarket division in the second quarter.
The company said communication chip sales fell 29 percent to euro236 million (US$304.46 million).


Updated : 2021-04-15 08:19 GMT+08:00