By Mauro Orru
Infineon Technologies AG said Tuesday that it swung back to a net profit in the third quarter of fiscal 2021, while revenue continued its ascent as demand for chips shows no signs of abating amid a global supply shortage.
The German chip maker posted a net profit for the three months ended June 30 of 245 million euros ($290.9 million), compared with a net loss of EUR128 million a year earlier.
Revenue for the quarter climbed to EUR2.72 billion from EUR2.17 billion. However, coronavirus-related constraints on manufacturing capacity in Malaysia, and the aftermath of the winter storm in Texas held back revenue growth, the company said.
The company’s segment result–a closely watched metric comparable to adjusted earnings before interest and taxes–rose to EUR496 million from EUR220 million, with its segment result margin, or adjusted Ebit margin, up to 18.2% from 10.1%, it said.
Infineon in May had guided for third-quarter revenue between EUR2.6 billion and EUR2.9 billion, with adjusted Ebit margin at around 18% at the midpoint.
For the fourth quarter, the company said it expects revenue of around EUR2.9 billion, with adjusted Ebit margin at around 19%.
“Demand for semiconductors is unbroken,” Chief Executive Reinhard Ploss said. “Inventories are at a historic low; our chips are being shipped from our fabs straight into the end applications,” he added.
Write to Mauro Orru at [email protected]; @MauroOrru94
(END) Dow Jones Newswires
August 03, 2021 02:11 ET (06:11 GMT)
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