LONDON – Fiscal Q3 sales at chip maker Infineon Technologies AG (Munich, Germany) were slightly ahead of previous guidance but the company 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 990 million euro (about $1,21 billion) up by 4 million euro on the previous quarter after Infineon had updated guidance for a slight fall in revenue. The company made a net income of 82 million euro (about $100 million) down from 111 million euro (about $136 million) in the previous quarter. A year before Infineon made a net income of 190 million euro (about $233 million) on revenue of 1,043 million euro (about $1.28 billion).
"Growth and margin are currently below plan, reflecting global uncertainties," said Peter Bauer, CEO of Infineon, in a statement. 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 that fourth-quarter revenue will be flat or down slightly compared with third quarter 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 the third quarter, while industrial and power control revenue should remain at a similar level.
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