A weak DRAM market saw Infineon Technology's sales slip from their end-financial 2000 levels in the company's first quarter of 2001.
Sales reached euro1.66bn (£1.05bn), up 8% on the same quarter in 2000 but down 30% sequentially. The company said that its non-memory business grew 5% on Q42000, however.
Net profit, which include a euro202m gain from the company's sale of its video business to Micronas, reached euro446m.
Ulrich Schumacher, president and CEO, said margins on non-DRAM products had improved, mostly in wireline communications and smart cards.
In its wireline business, Infineon has shifted more analogue line card and ISDN chip production to foundries. Its main concentration is on broadband access technologies, including fibre-to-the-home, 10BaseS and VDSL.
The company said the allocation situation was now beginning to improve and that it would be in a position to supply a wider range of customers during 2001 than had been possible in the previous year.