Infineon Technologies reported first-quarter revenue of €1.6bn, up 13% year on year but down 8% compared with the previous quarter.

Net income in the first quarter dipped to €34m, compared with €49m in the previous quarter. In the first quarter of its 2003 financial year, the company posted a net loss of €40m.

Pre-tax profits improved slightly to €70m in the October to December period from €67m in the last quarter.

"The drop in revenue is largely because of the strong euro and fierce pressure on prices, particularly for memory chips," said company spokesman Günter Gaugler.

Despite its first-quarter drop in revenue and earnings compared to the previous quarter, Infineon declared an end to the crisis in the global chip sector.

The group's memory division reported first-quarter revenue of €643m, down 16% compared with the previous quarter, but up 19% year on year.

In its second financial quarter, Infineon said it expected to ship more memory products. For the entire year, the company expects to sell more chips as businesses replace older computer equipment and demand grows for new DDR (double data rate) II chips for desktop PCs and servers.

Siemens, which spun off its semiconductor business to form Infineon, sold 150 million shares in the chip maker, reducing its stake to about 19% from around 40%.

By: DocMemory
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