Infineon Technologies AG delivered little tangible good news with its end of year results, saying a few markets may begin to stabilize but it expected continued pricing pressure throughout the first half of next year.
The Munich, Germany-based chip vendor reported sales of 1.4bn euros ($1.4bn) for the quarter ending September 30, up 27.6% on the year. Operating loss was 318m euros ($322m), compared to 957m euros ($969m) a year ago. Net loss was 506m euros ($512m), compared to a loss of 523m euros ($529.6m) last year.
For the full year, sales were down 8.1% to 5.2bn euros ($5.3bn), while net loss was 1bn euros ($1bn), compared to a loss of 591m euros ($598.5m) the previous year.
Sales at its wireless communications group were up 39% year on year in the fourth quarter to 249m euros ($252m), although the group made a loss of 29m euros ($29.3m). Memory products sales were up 77% on the year to 429m euros ($434.5m), and the group reduced its loss 62% to 200m euros ($202.5m). The company said its automotive and industrial group had reached an all time high. Wireless communications improved slightly.
Looking ahead to the first half of the current fiscal year, president and CEO Ulrich Schumacher said the company saw a stabilization of demand in mobile communications and a moderate development of demand in its automotive group. However, the outlook for its wireline and chipcard segments was uncertain for the first half of the fiscal year, he said. While prices and demand were increasing for memory products, Schumacher said it was too early to assume a sustained market improvement, and the company would concentrate on reducing its DRAM manufacturing costs.