German chipmaker Infineon on Tuesday posted a net loss as it reported fiscal third-quarter results that were skewed by the closing in mid-April of its $10 billion takeover of U.S. peer Cypress Technologies.
The supplier of automotive, power management and security chips reported a net loss of 128 million euros ($151 million),
down from a profit of 178 million euros in the prior quarter and below analyst expectations it would just break even.
Infineon slashed its outlook in May, forecasting a 5% decline in revenue for the fiscal year to Sept. 30, as the car
industry that accounts for two-fifths of sales was hit by the coronavirus pandemic.
"The pandemic continues to have a significant impact on our target markets, resulting in weaker demand in many product
areas," CEO Reinhard Ploss said.
"Thankfully, we are seeing concrete signs of recovery within the automotive sector, which has been particularly hard hit."
Revenue increased by 9% from the prior quarter to 2.174 billion euros while segment result —management's preferred
measure of operating profitability — fell by 20% to 220 million euros. The segment result margin came in at 10.1%.
Infineon forecast revenue of 2.3-2.6 billion euros in the fiscal fourth quarter, when it will fully consolidate Cypress
for the first time. At the midpoint it sees the segment result margin at 14%.
For fiscal 2020 as a whole, Infineon forecast revenue of around 8.5 billion euros and a segment result margin of 13%.