MUNICH -- Infineon Technologies AG here today reported a 34% sequential jump in revenues to 1.39 billion euros ($1.24 billion) in the company's second fiscal quarter, ended March 31, from 1.03 billion in the prior three-month period mostly due to increased DRAM prices and improvements in other chip businesses.

The former semiconductor unit of Siemens AG posted a net loss of 108 million ($96 million), compared to a loss of 331 million in the prior quarter. Infineon's sales were 16% below revenues in the same quarter last year, when it has a net income of 23 million.

"Infineon's revenue performance was driven by the overall improvement of demand in all business groups and a strong increase in prices for memory products," said Ulrich Schumacher, president and CEO of Infineon. "We were able to significantly reduce our net loss and further improve our cost position despite continued strong pricing pressure in automotive and communications."

The company's Memory Products Group saw its revenues surge 105% sequentially to 585 million ($520 million) from 285 million in the prior quarter, which ended Dec. 31. The total was 13% higher than 516 million in the second fiscal quarter last year. Infineon's memory loss was 28 million (earnings before interest and taxes, or EBIT), compared to an EBIT loss of 371 million in the prior quarter and a loss of 134 million in the period last year.

"In the last quarter, we have seen growing demand in all of our business segments, especially for memory products," Schumacher said.

Infineon said the outlook remains somewhat uncertain for the next six months, but it sees increasing signs of improvement. Most business units are expecting to face ongoing pricing competition and tough competitive conditions, said the company. However, Infineon is encouraged by a move for consolidation in DRAMs, including this week's announcement of Micro Technology Inc. to buy the memory business of Hynix Semiconductor Inc. in Korea (see April 22 story). At one point last year, Infineon was pursuing an agreement with Hynix.

In other business units, Infineon reported that revenues in its Wireline Communications Group grew 16% sequentially to 96 million $85 million) in the fiscal second quarter compared to the prior quarter, and sales in its Wireless Solutions Group were up1% to 208 million ($185 million) on a sequential basis. The wireline chip operation posted an EBIT loss of 66 million in the just-ended quarter, compared to a loss of 85 million in the prior quarter, while the wireless business had an EBIT loss of 20 million ($17.8 million) vs. a loss of 35 million in the previous quarter.

Infineon's Security & Chip Card ICs Group has revenues of 90 million ($80 million) compared to the prior fiscal quarter and its EBIT loss was 21 million ($18.7 million) in the just-ended quarter vs. a loss of 30 million in the prior period.

The company's Automotive & Industrial Group posted revenues of 299 million ($266 million) in the just-ended quarter, a 9% increase from the prior quarter. The group's EBIT earnings increased to 23 million ($20.5 million) vs. 20 million in the previous three-month period, said Infineon.