NEUBIBERG (dpa-AFX) - Infineon Technologies AG (IFNNY), a German semiconductor maker, on Tuesday reported a net loss for the fourth-quarter, that reflected a loss from discontinued operations.
For the three-month period to September 30, the company registered a net loss of 84 million euros or 0.07 euro per share, compared with a profit of 753 million euros or 0.57 euro per share, posted for the same period last year.
Earnings from continuing operations stood at 384 million euros or 0.29 euro per share, lower than 748 million euros or 0.57 euro per share, a year ago.
Excluding items, income from continuing operations was down at 641 million euros or 0.49 euro per share, compared with prior year's 846 million euros or 0.65 euro per share.
Loss from discontinued operations was 468 million euros or 0.36 euro per share, compared with a profit of 5 million euros in 2023, due to the settlement in August agreed with the insolvency administrator of Qimonda.
Profit from continuing operations before income taxes plunged to 448 million euros from previous year's 911 million euros. Operating profit was 473 million euros, down from prior year's 912 million euros.
Revenue decreased to 3.919 billion euros from last year's 4.149 billion euros.
The company said that it intends to propose for an annual dividend of 0.35 euro per share, unchanged from the previous year.
Looking ahead, Jochen Hanebeck, CEO of Infineon, said: 'Currently, there is hardly any growth momentum in our end markets except from AI, the cyclical recovery is being delayed. The inventory correction is continuing. Short-term ordering patterns and inventory digestion are clouding visibility on demand trends beyond the next couple of quarters. We are therefore preparing for a muted business trajectory in 2025.'
For the first quarter, Infineon expects revenue of around 3.2 billion euros. For the first-quarter of 2024, the firm had reported revenue of 3.70 billion euros.
For the full year, the company expects a slight decline in revenue. A slight decrease in revenue is expected in the ATV segment and a more pronounced decline in the GIP segment.
The annual adjusted gross margin is projected be around 40 percent and the segment result margin in the mid-to-high-teens percentage range.
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