FRANKFURT (AP) ¿ German chipmaker Infineon Technologies AG said Thursday its fourth quarter net income rose sharply from a large loss a year ago as the company saw cost reductions help its results.
Infineon, based in Neubiberg, said net profit totaled ¿14 million ($21 million) in the fourth quarter, compared with a loss of ¿884 million in the fourth quarter of 2008.
Revenue declined 18 percent to ¿855 million from ¿1.05 billion in the fourth quarter a year ago. Compared to the third quarter, however, revenue increased 12 percent.The company's fiscal year begins in October. For the full year, Infineon still had to report a loss, although it was able to reduce it considerably. The company experienced a steep decline in demand for its products as a result of the economic downturn, and also saw restructuring effects as a result, including job reductions. For the full fiscal year, ended September 30, the company reported a net loss of ¿671 million compared to a net loss of nearly ¿4 billion in the 2008 fiscal year. Revenue in the 2009 fiscal year declined to ¿3.03 billion from nearly ¿4 billion in 2008. "The strong impact of our cost reduction measures during the 2009 fiscal year have stabilized our balance sheet and helped to increase our financial freedom and flexibility," said Peter Bauer, the company's chief executive in the report.