Net income was $132.4 million, up sequentially from $48.3 million the previous quarter and a net loss of $143.6 million a year ago. However, during the quarter Infineon increased an accrual charge related to ongoing U.S. and European DRAM antitrust investigations by $227.8 million to $262.5 million. This resulted in a fiscal quarter loss of $69.3 million.

Infineon attributed the sequential and year-on-year quarterly earnings increases, excluding the effects of the accrual, to higher chip prices in its Memory Products segment, and increased productivity in its Secure Mobile Solutions segment.

"The worldwide semiconductor market has gained considerable momentum during the last three months. We were able to take advantage of this development which is reflected in our improved financial results, excluding the effect of the antitrust accrual," said Max Dietrich Kley, acting chief executive of Infineon, in a statement. "During the third quarter, we initiated a number of key R&D projects and continued to invest in our worldwide production facilities. We expect these initiatives to significantly strengthen our portfolio and position in our target markets and to further improve the productivity across all our Business Groups."

For the fourth quarter of fiscal year 2004, Infineon expects revenue for mobile solutions to increase further as demand for baseband ICs and RF transceivers remains high, reflecting an anticipated increased number of mobile phones sold in 2004. The company also expects a favorable supply-demand-balance for its Memory Products segment, based on increases of seasonal demand and modest supply additions in the industry.

By: DocMemory
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