Infineon Q1 revenue comes in slightly below expectations


FILE PHOTO: A close-up of a the Infineon microcontroller kit in Munich, February 21, 2019. REUTERS/Andreas Gebert

BERLIN (Reuters) -Infineon, a leading supplier of microchips to the auto industry, on Thursday bumped up its segment result margin outlook for fiscal 2023 to adjust for currency effects as it came in slightly below revenue expectations for its first quarter.

The Munich-based company's revenue fell 5% from the previous quarter to 3.95 billion euros ($4.35 billion) in the quarter ending Dec. 31, slightly under the 4 billion euros expected in a poll of analysts by Vara Research published on Jan. 24.

Infineon's segment result margin rose to 28.0% from 25.5% the previous quarter, beating expectations of 24.7%.

The company maintained its full-year revenue outlook of around 15.5 billion euros, plus or minus 500 million euros, despite a less favourable assumed exchange rate, but now expects a segment result margin of 25% from a previous 24%.

Infineon also said investments for the full year are still expected to amount to approximately 3 billion euros.

Chief Executive Jochen Hanebeck said automotive and industrial demand has been strong while there was significantly weaker demand in areas such as smartphones, PCs and data centres. "Substantial parts of our business have proved robust even in a weaker macroeconomic environment," he said.

For the second quarter, Infineon expects revenue of around 3.9 billion euros and a segment result margin of around 25%.

($1 = 0.9084 euros)

(Reporting by Miranda Murray, editing by Rachel More)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

Google denies destroying 'chat' evidence in U.S. antitrust lawsuit
EU competition chief flags fresh probes into multinationals' tax deals
Content moderators sue Meta over alleged 'union-busting' in Kenya
Amazon deepens tech-sector cuts by slashing another 9,000 jobs
Uber, Lyft trade group asks Biden's labor nominee to explain position on gig workers
Watch out for fake ChatGPT browser extensions
China appeals for fair treatment after latest TikTok bans
Musk says code for recommending tweets will be public
Fahmi: More info on fixed broadband Unity Package to be announced on March 29
Scared of losing your job to ChatGPT? Maybe you're suffering from 'AI-nxiety'

Others Also Read