CHIP VENDOR Infineon managed to report a profit in the first quarter of its fiscal year despite revenues falling by 10 percent to €851m.
Infineon, Europe's second largest chip maker, has been enduring a tough few years and the firm started its fiscal 2013 barely managing to stay in the black. Infineon reported revenues of €851m, 10 percent down from the same quarter the prior year, and profits of just €19m.
According to Infineon, the cost cutting measures it put into place are taking effect, and all but one of its divisions posted an increase in revenues. Even the firm's automotive business, which in the semiconductor industry is seen as one of the biggest growth areas, suffered a four percent drop in sales with only the firm's chip card and security business posting an 11 percent growth in sales.
Infineon Technologies CEO Reinhard Ploss said, "Revenue and earnings are in line with our expectations and cost saving measures are beginning to take effect. As long as the global economy does not stall, business should continue to pick up as expected. Our delivery capability at top quality levels will enable us to take advantage of the chances the market offers."
Infineon said it expected "mid single digit" percentage second quarter revenue increases but added that full year 2013 revenue is set to decline by a "mid-to-high single digit" percentage from the previous year. µ