According to Infineon, it has achieved a "segment profit" of € 8 million (about $11.3 million) in the third quarter of its financial year. In the quarter ending June 30th, the company achieved sales of €845 million — 18 percent less than during the same quarter last year but 13 percent higher compared to Q2.

Infineon's automotive segment achieved a loss of €17 million on sales of €206 million. The Industrial and multimarket segment wrote an operating profit of €9 million on sales of €228 million, the ChipCard and Security segment also was profitable with €4 million on sales of €82 million.

The wireless solution segment achieved the highest profit, driven by sales to customers such as Nokia and Apple. On sales of €251 million, the segment generated a profit of €19 million. Wireline communications which Infineon has decided to sell to U.S. based private equity company Golden Gate Capital, also was profitable on operating basis. On sales of €84 million, the wireline activities generated a profit of about €7 million.

Other segments associated to Infineon's corporate activities generated a loss amounting to €14 million in total. The final figures will be published on July 29.

The approval of the capital increase through Bafin is the first formal step necessary to implement the company's refinancing strategy. Infineon plans to take private equity investor Apollo LLC on board by selling up to 30 percent of the shares issued in the capital increase to the investor.

However, there are still other possible obstacles. Infineon's shareholders have a pre-emptive right to buy the new shares; Apollo will only take over the reminder of up to 30 of the capital. In case Apollo will get less than 15 percent, it will walk away from the deal.

In addition, German authorities have to approve the Apollo entry. Since Infineon's ChipCard and Security segment produces goods rated as "security relevant", the move is subject to approval by export tracking authorities.

By: DocMemory
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