LONDON German chipmaker Infineon Technologies AG has reported a profitable but flat fourth fiscal quarter and warned that it expects revenue in its 2012 fiscal year to decline compared with the 2011 fiscal year. The company has also said it plans to re-organize its businesses.
For the fourth fiscal quarter ended Sept. 30 Infineon has reported a profit total segment result in its own jargon of 195 million euro (about $260 million) on sales of 1.038 billion euro (about $1.39 billion), which was almost flat sequentially.
For the 2011 fiscal year Infineon achieved 21 percent sales growth to 3.997 billion euro (about $5.38 billion). The total segment result rose by 65 percent from the 2010 fiscal year to 786 million euro (about $1.06 billion). Some 308 million euro (about $410 million) of cash was returned to the capital markets.
The outlook for the first quarter of 2012 fiscal year, is that sales will decline by about 10 percent, Infineon said. And the total segment result margin will be 13 to 14 percent of sales.
Infineon (Munich, Germany) said it expects the full fiscal year revenue to be decline by single digit percentage relative to the 2011 fiscal year. One contributory factor to this will be planned reductions in wafer supplies to previously divested businesses.
Whilst we are not immune to cycles, we perform well during the current economic slowdown and remain fully confident in the long-term growth and margin prospects of our business, said CEO Peter Bauer, in a statement.
Organizational changes due to come in with effect from Jan. 1, 2012, will include the splitting of the industrial and multimarket IMM business division into two parts; Industrial Power Control (IPC) and Power Management and Multimarket (PMM). IPC will focus on industrial applications requiring high-power while the PMM division will focus in offering ICs with low-to-medium power ratings for use in power supplies for servers, laptops or televisions.
Arunjai Mittal, currently division president of IMM, will assume responsibilities for sales, marketing, strategy development and M&A as fourth member of the Infineon management board as of that date, Infineon said.
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