PARIS German chip vendor Infineon Technologies AG (Munich, Germany) reported strong revenue growth for the first quarter of fiscal year 2010, ended Dec. 31, 2009, and raised full year revenue guidance.
For the first quarter of fiscal year 2010, Infineon published revenue of 941 million euros ($1,317 million), a 10-percent sequential increase and a 27-percent year-over-year increase. The company specified that its first quarter combined Segment Result represented 88 million euros ($123.2 million) compared to 52 million euros ($72.8 million) in the prior quarter.
In a commentary of quarterly financial performances, Peter Bauer, CEO of Infineon, declared: "Thanks to leadership positions in our target markets, we translated the general economic recovery into operating results for the first quarter which exceeded our original expectations. The Automotive and Industrial & Multimarket segments benefited strongly from the market upswing."
For the first quarter, Infineon published a net income of 66 million euros, "a strong improvement from the net income of 14 million euros ($19.6 million) in the fourth quarter of 2009."
The company reported a 46 million euro ($64.4 million) loss from continuing operations and the income from discontinued operations amounted to 112 million euros ($156.8 million).
For the second quarter of fiscal year 2010, Infineon said it expects revenue to be on the same level or, due to seasonality, to decrease slightly on an annual basis. However, for full year 2010, the Munich-based company said it has raised its guidance and now projects a 20-percent revenue growth compared to fiscal year 2009.
"Although uncertainties in the worldwide economy remain regarding developments in the second half of this fiscal year, we are raising our guidance for the full 2010 fiscal year," stated Bauer. "We are now looking for revenue growth in excess of 20 percent with a high single-digit combined Segment Result margin."
Previously, the company said it anticipated revenue growth of 10 percent or more with mid single-digit combined Segment Result margin.
Infineon specified hat it deconsolidated Altis Semiconductor SA in December after the waiving of its option to acquire shares in Altis from its joint venture partner IBM. Infineon recorded a non-recurring operating charge of 81 million euros.
Mid-November, Frédéric Brunier, secretary of Altis' works council, announced that Altis had found a buyer. The reported name was Germain Djouhri, a French-Algerian financier who was prepared to invest 79 million euros ($118 million) in the company.