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Infineon forecasts flat growth in fiscal Q4

Posted: 02 Aug 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Infineon? power management? multimarket component? market forecast?

According to Infineon Technologies, fiscal Q3 sales at were slightly ahead of previous guidance but confirmed its outlook that the fiscal Q4 (calendar Q3) would be flat.

With revenues currently running below previous predictions Infineon said that investments in the 2013 fiscal year will be significantly lower than in the 2012 fiscal year. In addition, Infineon said headcount was frozen at the company starting in July and that the management board is evaluating "further measures."

The fiscal Q3 revenue was about $1.21 billion after Infineon had updated guidance for a slight fall in revenue. The company made a net income of nearly $100 million down from almost $136 million in the previous quarter. A year before, Infineon made a net income of about $233 million on revenue of nearly $1.28 billion.

"Growth and margin are currently below plan, reflecting global uncertainties," said Peter Bauer, CEO of Infineon. Bauer, who is due to retire at the end of the fiscal year, added: "The underlying trends for energy efficiency, mobility and security business nevertheless remain positive. We will therefore continue our policy of strategic investment, firmly convinced that this is the only way for Infineon to extend its market leadership in the future. That said, we will make savings now wherever savings are to be made. With this, the cost situation remains manageable even in the face of current market conditions."

Infineon forecasts Q4 revenue will be flat or down slightly compared with Q3 revenue. Due to seasonal factors, the power management and multimarket component division revenue is expected to rise whereas automotive revenue is expected to fall. Chip card and security revenue is likely to be slightly lower than in Q3, while industrial and power control revenue should remain at a similar level.

- Peter Clarke
??EE Times

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