Infineon Reports First-Quarter 2005 Results

Infineon Technologies AG (Germany) reported first-quarter revenues of €1.82 billion, down 9% sequentially, reflecting reduced sales volumes in all segments. Net income in the first quarter was €142 million, up from net income of €44 million sequentially; first quarter EBIT increased to €211 million from €113 million in the prior quarter. Results of both quarters were affected by non-recurring effects.

In the first quarter of financial year 2005, Infineon Technologies reported a sequential revenues decrease in each of its business segments. Sales volumes in the three logic segments declined mainly due to lower demand driven by inventory corrections by customers. Although bit production increased slightly in the Memory Products segment, overall sales volumes declined.

"As anticipated in our outlook from last quarter, we have seen a slowdown in most of our application segments, a further clear market weakening and lower customer demand during the first quarter," said Infineon Technologies CEO and President Wolfgang Ziebart. "We have thus taken necessary measures to adjust inventory levels, which negatively impacted our first quarter's results."