Infineon ( IFX) posted preliminary financial results late Wednesday that it said were disappointing due to high inventories and the weak U.S. dollar during its fiscal first quarter ended December.The Munich-based chipmaker reported earnings before interest and taxes of 211 million euros ($279.7 million) and sales of 1.82 billion euros ($2.41 billion). Operating earnings include one-time license income of 118 million euros that it received from a legal settlement with ProMOS. During the company's fourth quarter, which ended Sep. 30, Infineon reported earnings before items of 113 million euros on sales of 1.99 billion euros. Infineon had predicted when the period began only slight declines from its fourth-quarter results. The company logged sequential increases in sales in all four of its business units. Sales of its memory chips amounted to 766 million euros, down 5% from the fourth quarter, with earnings before items of 196 million euros or 78 million euro when excluding the ProMOS settlement. That's a decrease of almost 50% from the previous quarter. Memory-bit production increased slightly but shipments fell because of higher inventory. Infineon also said sales from of its automotive and industrial unit fell to 452 million euros from 501 million euros in the fourth quarter. EBIT declined to 50 million euros from 76 million euros previously. "Lower revenue combined with an active reduction in inventory levels resulted in a decline of fab utilization and EBIT margin," the company said in a statement. Also, sales in its wireline communications business and its secure mobile products unit dropped sequentially The chipmaker said it will report actual financial results on Jan. 24. Shares closed Wednesday's regular session down 2 cents, or to $10.02.