LONDON —German chip vendor Infineon Technologies AG beat analysts' expectations as it made a net income of 126 million euro (about $164 million) on revenues of 1,209 million euro (about $1.57 billion) in its fiscal third quarter, ended June 30, 2010.
The net profit was up from 79 million euro (about $100 million) in the second quarter and a loss of 23 million euro (about $30 million) in the same quarter a year before. The revenue was up 59 percent year-on-year and 17 percent sequentially and the results prompted Infineon to raise its guidance for the fourth fiscal quarter and its financial year.
The strong growth was driven sequentially by Infineon's Wireless and Industrial & Multimarket (IMM) divisions, the company said. "After a challenging 2009 fiscal year, we are executing extremely well in the current up-cycle. We have come a long way in improving profitability," said CEO Peter Bauer, in a statement.
For the fourth quarter of the 2010 fiscal year, Infineon said it now expects a high single-digit percentage increase in revenues. Given the results for the first nine months and the outlook for the fourth quarter of the 2010 fiscal year, Infineon is now anticipating revenue growth for the 2010 fiscal year compared to the 2009 fiscal year to be a mid to high 40s percentage, up from a high 30s percentage in the previous outlook.
The company said it would also be increasing its investments for the year to more than 400 million euro (about $520 million), up from an earlier guidance of more than 300 million euro (about $390 million).
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