Chipmaker Infineon Technologies reported a return to profitability in its first quarter as higher earnings at its memory chip business offset losses at its wireless chip business.
The Munich-based company reported a net profit of 120 million euros ($154.81 million) for the first quarter, up from a net loss of 183 million euros in the same quarter last year, beating analysts' forecasts.
Analysts polled by Dow Jones Newswires had expected net profit of 100 million euros ($129.01 million) on sales of 2.28 billion euros ($2.94 billion).
Sales in the three months to Dec. 31 rose 27% to 2.12 billion euros ($2.74 billion).
Infineon, one of Europe's largest chipmakers, said that it expects fiscal second-quarter sales and earnings before interest and taxes to be at least at the same level as the first quarter, excluding its memory chip business.
"In a challenging operating environment, results for the first quarter came out better than originally expected," CEO Wolfgang Ziebart said in a statement.
He said the company expected to return to revenue growth in its automotive, industrial and multimarket division in the second quarter.
The company said communication chip sales fell 29% to 236 million euros ($304.46 million).