Memory was little help to Munich, Germany’s Infineon Technologies AG in its now closed fiscal Q4.

The company reported Q4 revenues of $2.6 billion (1.99 billion euro), up 4 percent sequentially from $2.5 billion (1.9 billion euro) in Q3 and up 13 percent from $2.3 billion (1.8 billion euro) in the same quarter last year. The gains reflected higher sales in all segments, except memory products, the company said.

Net income in Q4 was $56.9 million (44 million euro), up from a net loss of $72.4 million (56 million euro) in Q3 and down 10 percent from net income of $63.3 million (49 million euro) in the same quarter last year.

Fiscal year revenues were $9.3 billion (7.2 billion euro), up 17 percent over last year’s $8 billion (6.2 billion euro), reflecting higher demand in all segments but wireline communications.

Net income for the fiscal year was $78.8 million (61 million euro), up from a net loss of $562 million (435 million euro) last year.

In addition, manufacturing cost reductions were achieved, resulting in the operating profit improvement of $717.1 million (555 million euro) despite charges of $270 million (209 million euro) in connection with the U.S. and European DRAM antitrust investigations and related civil claims.

“We were able to strongly increase revenues and operating cash flow during the last fiscal year, but are not satisfied with the earnings," Wolfgang Ziebart, CEO and president of Infineon, said in a statement. "Our primary goal for the upcoming years is to improve productivity and increase efficiency while containing our cost base. I am convinced of Infineon’s extraordinary know-how, innovational strengths, and the competence of our employees. These factors, combined with the competitive position we currently have, provide a solid base to achieve this goal.”

Looking ahead to fiscal Q1 2005, Infineon said it sees signs of a slowdown in several of its application segments. In these markets, inventory levels have gone up as compared to the previous quarters.

“During fiscal year 2004, we were able to benefit from the improved market conditions in the worldwide semiconductor industry. Without the impairment and antitrust related charges, fiscal year 2004 would have been more profitable for Infineon. In fiscal year 2004, we showed a revenue improvement for every quarter. But now we have to prepare ourselves for a slowdown,” Ziebart said.

By: DocMemory
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