Power Semiconductor developer Infineon Technologies AG (Germany) reported fourth-quarter 2005 financial year results. Fourth-quarter revenues were €1.73 billion, up eight percent sequentially, reflecting increased sales in all operating segments. Fourth-quarter EBIT loss improved significantly to €43 million from €234 million in the prior quarter, reflecting improved EBIT in all operating segments. The planned phase-out of production at the company's Munich-Perlach facility, and impairment charges in the communications segment, contributed to charges of €64 million, included in the fourth-quarter EBIT loss. In the third quarter, charges were €81 million. Net loss in the fourth quarter was €100 million compared to a net loss of €240 million in the prior quarter.
The 2005 financial year revenues were €6.76 billion, down six percent year-on-year. The EBIT loss was €183 million in the 2005 financial year, compared with positive €256 million in the 2004 financial year. Net loss for the 2005 financial year amounted to €312 million, compared to net income of €61 million in the 2004 financial year. For the 2005 financial year, cash flow from operations decreased to €1.04 billion, from €1.86 billion in the 2004 financial year, mainly the result of the net loss in the 2005 financial year. Free cash flow in 2005 was negative €281 million, a decrease from positive €206 million in 2004.
