Infineon Swings to a Profit

Last week, Qimonda reported that its first-quarter revenue surged about 73% year over year, thanks to robust demand for DRAM memory in consumer and communications applications.

Infineon CEO Wolfgang Ziebart said Infineon's first-quarter results came out better than expected in a "challenging" operating environment.

"In a mixed market environment, we should return to revenue growth in automotive, industrial and multimarket in the current quarter and see strong design-win momentum in communication solutions, in particular the baseband business," Ziebart said.

Infineon projected that sales and earnings before income and taxes, excluding Qimonda, in the current quarter would remain "at least" flat sequentially.

The company said it would take charges related to the BenQ insolvency in the current quarter, rather that in the first quarter as it initially expected.

The charges will be significantly lower than the 30 million euros originally anticipated.

Shares of Infineon were up 1.1%, or 16 cents, at $14.55.