Loss of 100 million euros confirmed four Infineon will split the memory chip

Sina Technology News Beijing on November 18th news, Infineon has released 2005 fourth quarter earnings today. The report shows that, due to the continued decline in the communications chip business, Infineon third consecutive quarterly losses.

In the quarter ended September 30th, Infineon net loss of 100 million euros (about $117 million). This year, a substantial decline in performance, the fourth quarter of fiscal year 2004, Infineon net profit of $44 million. Infineon fourth quarter sales of $1 billion 730 million, compared with the same period last year, a decrease of 1 billion 990 million euros of 13%. The Infineon fourth quarter results did not reach the expected, Bloomberg survey, analysts had expected the Infineon fourth quarter net loss of 84 million euros, with sales of 1 billion 750 million euros.

The fiscal year 2005, net loss of 312 million euros for Infineon ($360 million), compared with a net profit of 61 million euros; operating loss of 182 million euros in the same period last year, operating profit of 256 million euros; sales of 6 billion 759 million euros, down 6%. Among them, the Infineon automotive, industrial and diversified sales of 2 billion 516 million euros, down by 1%; operating profit of $134 million, down by 47%. Infineon communications sector revenues of 1 billion 391 million euros, down by 18%; operating loss of $295 million, operating loss of $44 million for the same period last year. Infineon memory product segment revenues of 2 billion 826 million euros, down by 3%; operating profit of $122 million, down by 28%.

Due to the increasingly fierce market competition, Infineon memory chip business performance continued to decline. Since 2001, Infineon memory chip business accumulated losses of more than 2 billion euros. Infineon CEO Wolfgang ziebart (Wolfgang Ziebart) said Thursday that Infineon has decided to split the memory chip business, the move will help promote the development of the company and improve profit margins. From July 1st next year, Infineon memory chip business will become an independent legal entity. After the completion of the spin off, Infineon memory chip business is likely to be an initial public offering.

Ziebart said, after the memory chip business listing, Infineon will gradually reduce holdings of shares. He said: "the initial public offering of the memory chip business will help accelerate our cooperation with other companies." In addition, he did not disclose more details, because it is unclear what the memory chip business will be listed on the stock exchange.