Chipmaker Infineon reports smaller 3Q loss
BERLIN – Infineon Technologies AG said Friday its loss narrowed to 23 million euros ($29 million) in its third fiscal quarter, but analysts had been expecting the memory chip maker would make a profit.The company also laid out plans for an initial public offering of shares in its computer chip business, Qimonda AG, saying it would make a 21 percent stake available on the New York Stock Exchange. It declined to say when the initial public offering would take place.In discussing its quarterly loss for the three months ended June 30, the company cited costs associated with the planned IPO of Qimonda ahead and what it called valuation allowances of tax assets. Infineon lost 240 million euros in the third quarter a year ago.Analysts surveyed by Dow Jones Newswires had predicted a profit of 31 million euros ($39 million). Investors sent the company’s stock 5.2 percent lower to 8.46 euros ($10.69) on the Frankfurt exchange.Company-wide sales rose 22.4 percent to 1.97 billion euros ($2.49 billion) from 1.61 billion euros a year ago.CEO Wolfgang Ziebart pointed to improved operating earnings, which exclude one-time expenses and financial items such as interest and taxes.Infineon recorded an operating profit of 49 million euros ($62 million) compared with an operating loss of 234 million euros in the year-ago quarter as its three main businesses – chips used in computers, cars and mobile phones – showed better results.Qimonda earned 100 million euros ($126 million) compared to a loss of 136 million euros a year ago, the company said.Separately, Infineon said it had filed a registration statement with the Securities and Exchange Commission, the U.S. equities regulator, for a public offering of American depositary receipts, or ADRs, that it estimated would raise between $1 billion and $1.1 billion.Infineon would sell 21 million ADRs, with each standing for one ordinary share of Qimonda, while an additional 42 million ADRs would be made available through a capital increase in Qimonda.At the end of the process, Infineon would retain a majority stake in the computer memory business, hard pressed by low prices and global competition.