Memory loss: Infineon back in the red

Infineon Technologies AG reported a first-quarter, pre-tax loss of $147.5 million on Friday (Jan. 20), continuing a string of quarterly losses. Overall sales totaled $2.02 billion.

Infineon's memory business again suffered from declining average selling prices. Especially hard hit were DDR2 products. The company's memory unit reported sales of $820 million, resulting in a pre-tax loss of $142.6 million.

In two logic segments, sales exceeded analysts estimates as well as Infineon's own guidance. Its automotive, industrial and multimarket business unit achived sales of $788 million and a pre-tax profit of $61.7 million. The communications segment reported sales of $403.8 million, yielding another pre-tax loss of $32.3 million.

Continuing bad results in the memory business will likely alleviate any doubts within the company about the wisdom of spinning off that business in mid-2006.

- Christoph Hammerschmidt
EE Times