Infineon Technologies, Europe's second-largest semiconductor manufacturer, reported its 3Q net loss widened to €197 million ($271m) or -€0.26/share, as revenues declined 11% to €1.75b, missing analysts' average estimate of a net loss of -€146m on sales of €1.8b. On a more promising note, ex-Qimonda, Infineon said it would have earned an operating profit of €13m on 2% higher sales to €995m. Infineon expects more revenue gains in 4Q, ex-Qimonda, driven primarily by its Communications segment. Infineon owns an 85.9% stake in memory-chip maker Qimonda, which suffered a 25% drop in quarterly sales as DRAM prices slumped. Infineon has previously said it eventually wants to cuts its stake to below 50%. Shares of Infineon reversed earlier losses and were last up 2.8% to €12.45. Its ADRs lost 3% to $16.71 Thursday. In a note published this morning, Citigroup reiterated its "1H" (buy/high risk) rating with a target of €14.90. Infineon's earnings call is at 4 a.m. Eastern. Check for Infineon's earnings call transcript later today.
Sources: Press release, Bloomberg, MarketWatch
Commentary: Infineon: A Big Winner In iPhone • Apple's iPhone and the Future of Infineon • Apple Engineered Huge Margins Into Its iPhone
Stocks/ETFs to watch: Infineon Technologies AG (IFX), Qimonda AG (QI). Competitors: STM, TXN, MU, FCS, IRF, BRCM
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