Pang says he’s seeing indications of higher inventories in the wireless phone food chain. He writes that his checks find build plans for cell phone printed circuit boards in Q4 are running below seasonal levels, and could further impact foundry utilization rates.
Pang's nose should be 12 inch long by now...couple days ago he got RIMMed - good ridance
Infineon Raises Company's Full-Year Forecast as Smartphones Increase Sales
By Ragnhild Kjetland - Sep 21, 2010 8:30 AM PT
Infineon Technologies AG, Europe’s second-largest chipmaker, raised its fiscal 2010 profitability and revenue forecast for a fourth time as it benefits from higher-than-expected sales of smartphones.
The company predicts revenue in the 12 months ended Sept 30. will rise by about 50 percent with an operating profit margin of 13 to 14 percent, Infineon said in a statement today. That compares with a previous prediction for a “mid to high” 40s percent sales growth and a “low teens” percentage margin.
Infineon shares were down 0.5 percent at 4.74 euros at 5.25 p.m. in Frankfurt trading. Before the statement, the shares lost as much as 2.2 percent today. The Neubiberg, Germany-based company last raised its forecast on July 28.
Researcher Gartner Inc. this month raised its forecast for worldwide semiconductor revenue in 2010 to $300 billion, a 31.5 percent increase from 2009. It warned “the industry cannot maintain the momentum” in the second half of the year, or into 2011, partly because of slowing sales of computers and more competition in chips for specific applications on mobile phones.
Infineon last month agreed to sell the unit that makes semiconductors for wireless devices such as Apple Inc.’s iPhone to Intel Corp. After the disposal, Infineon will get most of its revenue from chips for power and energy-efficiency applications such as wind turbines, and from semiconductors for cars.
The wireless division “made a disproportionately higher contribution to the increase in guidance driven especially by higher than expected smartphone sales,” Infineon said today.
On Aug. 27, Intel, the world’s biggest chipmaker, cut its forecast for the third quarter, citing the weaker-than-expected consumer demand for personal computers. Infineon will report fiscal fourth-quarter results on Nov. 16. STMicroelectronics NV, Europe’s largest semiconductor maker, will release third-quarter results on Oct. 20.
To contact the reporter on this story: Ragnhild Kjetland in Frankfurt at rkjetland@bloomberg.net
To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net |
