Infineon reports Q3 results

* Third quarter revenues were Euro 1.47 billion – flat sequentially and increasing 11 percent year-on-year - mainly driven by increased sales in the communications segments* Quarterly net loss was Euro 116 million - strongly improving from a net loss of Euro 328 million sequentially - primarily due to further productivity increases and no significant inventory valuation effect; the net loss includes impairment charges of Euro 68 million* Improved gross cash position of 2.4 billion Euro and positive free cash flow of Euro 11 millionInfineon Technologies AG (FSE/NYSE: IFX), announced results for its third quarter and first nine months of fiscal year 2003, ended June 30, 2003. The company had revenues from continuing operations of Euro 1.47 billion, remaining almost flat sequentially and increasing 11 percent year-on-year. Quarterly net loss amounted to Euro 116 million compared to a net loss of Euro 328 million in the previous quarter and a net loss of Euro 76 million in the third quarter of the last fiscal year. This strong sequential improvement is mainly due to increased productivity, further cost reductions and no significant inventory valuation effect compared to the previous quarter. The quarterly loss included impairment charges of Euro 68 million, reflecting a goodwill write down of the company’s interest in Catamaran Communications. The net loss also included a tax benefit of Euro 10 million compared to a tax expense of Euro 96 million in the previous quarter. Quarterly EBIT (which Infineon defines as earnings (loss) from continuing operations before interest, minority interest and taxes) significantly improved to a loss of Euro 115 million, compared to a loss of Euro 223 million in the previous quarter, but up from a loss of Euro 110 million in the third quarter of the last fiscal year. Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG commented: "Although we currently see a more positive market environment, especially for DRAM, last quarter still was very difficult due to the unfavorable Euro/Dollar exchange rate conditions and ongoing strong pricing pressure. However, we achieved a solid revenue performance in most of our business groups and significantly reduced our net loss by Euro 212 million sequentially. Without the impairment charge our net loss would have been Euro 48 million." Source: PCBnewsline