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Infineon shares plunge on poor third-quarter results
Frankfurt (AFP) Jul 21, 2006 Shares in the German chip maker Infineon plunged Friday after the company unveiled disappointing quarterly results, dealers said. Infineon shares had fallen by 5.49 percent to 8.43 euros in midday trades on the Frankfurt stock exchange, while the Dax index of leading shares showed a loss of 0.72 percent. One dealer said the group's quarterly figures were "clearly below expectations". Infineon posted a net loss of 23 million euros (29 million dollars) for its third quarter ending June 30, while analysts had expected a profit. Core earnings of 49 million euros also missed a market target of 51 million. Third-quarter sales reached 1.972 billion euros, up from the year-earlier figure of 1.606 billion euros but below analysts' average consensus of 1.989 billion. The Bernstein brokerage said in a note to clients: "Infineon reported revenue for the third quarter that was 4.0 percent below our expectation of 2.05 billion euros, while earnings per share of 0.03 euros was also below our expectation of 0.06 euros, and a consensus of 0.04 euros. "Weaker earnings were driven by the Comms (communications) segment, which we believe stemmed from further market share loss of BenQ handsets," it added. The broker referred to a mobile telephone manufacturer bought last year by Siemens, with which Infineon has historic ties. The broker said that Infineon's guidance for an improvement in revenue and earnings in the non-memory segment based on new wireless customers was "not very surprising or helpful for investors given it is from such a low base". Infineon nonetheless reduced its net loss thanks to its memory chip unit Qimonda, part of which is to be listed by the parent company in an initial public offer. Qimonda hopes to raise 1.0-1.1 billion dollars (788,000-867,000 billion euros) in its IPO offering on the New York Stock Exchange, with the bookbuilding price set at 16-18 dollar per American Depository Receipt, the means by which Qimonda stock will be traded. Infineon expects to set a final price during the week of August 7, chief financial officer Peter Fischl told journalists during a teleconference. The IPO will consist of 63 million ADRs, of which 21 million will come from a stake held by Infineon. The remaining 42 million ADRs will be from a capital increase by Qimonda. A greenshoe option to be offered in the event of strong demand will consist of 9.45 million additional ADRs held by Infineon. Qimonda expects to receive proceeds of 672-756 million dollars from the sale of the 42 mln ADRs. It intends to spend these funds on research and development. Community Email This Article Comment On This Article Related Links All about the technology of space and more
Google tool bar seekers tricked into downloading computer virus: security firm
San Francisco (AFP) Jul 21, 2006 Computer hackers built a fake Google Tool Bar website to trick people into downloading a malicious program that could turn machines into "zombies," a US Internet security firm said on Friday. |
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