In a remarkable year for Infineon, the company has ended a ten quarter run of losses and has seen its share price increase ten-fold.
Back in March, Infineon had suffered eight successive quarters of loss and its shares were traded at 35 eurocents on the Frankfurt stock exchange.
Now the shares are nudging €3.50 and the calendar Q3 (fiscal Q4) figures show a profit of €14m on sales of €855m with free cash flow of €115m.
"The significant improvement in results in the fourth quarter reflects our cost- reduction efforts and continuing strong cost discipline, as well as a recovery in demand across all our operating segments', said CEO Peter Bauer, "building on this momentum, we look back on a fiscal year, which was extremely demanding but also featured the most remarkable improvements and achievements in Infineon's history. For the 2010 fiscal year, we are well positioned to grow market share in our four target markets and deliver improved results on a sustainable basis."
The increase in revenues reflects growth in all of the company's four operating segments, driven by the economic recovery and improved demand in the supply chain as well as at end customers.
All of the company's four operating segments achieved positive results. Higher sales levels, tight cost control, and higher factory loading were the main drivers of the earnings improvement, which were, however, partially offset by the weaker US dollar against the Euro.