Memory chip sales boosted revenue at Infineon Technologies ( IFX) in its fiscal third quarter, and the German chipmaker unveiled details of its plans to spin off the memory group in a public offering. Infineon announced Friday that it posted sales of $1.97 billion euros ($2.48 billion) in the three months ended June 30, up 23% from $1.6 billion euros in the year-ago period. The company narrowed its loss to 23 million euros compared with 240 million euros in the third quarter of 2005. The company ascribed the loss partly to charges associated with the spinoff of its memory division. Excluding interest and taxes, the company turned a profit, earning 49 million euros Shares of Infineon sank 5.6%, or 62 cents, at $10.52 in midday trading Friday, tracking a broad selloff in the tech sector. Sales of memory chips were the main engine of growth during the quarter, with revenue surging 48% year over year to 977 million euros, thanks to an increase in bit shipments and average selling prices. In November, Infineon announced it was splitting off the volatile memory group to focus on making logic chips for automotive, communications and industrial markets. In a separate announcement Friday, Infineon set the offering price for shares of the memory business, dubbed Qimonda. The company will sell 63 million American depositary receipts of Qimonda, priced between $16 and $18 per ADR, for a total offering between $1 billion and $1.1 billion. Credit Suisse, Citigroup and JPMorgan will act as joint book-running managers for the offering, which will list Qimonda on the New York Stock Exchange. No time frame was given for the offering. Qimonda expects to receive between $672 million and $756 million in proceeds from the offering which it will use to finance investments in manufacturing facilities and research and development. During the third quarter, Infineon's automotive and industrial group saw sales rise 14% to 714 million euros, while the communications solutions business recorded a 15% drop in revenue. "We are pleased with the overall EBIT development in the third quarter," said CEO Wolfgang Ziebart in a statement. "While EBIT in the automotive, industrial and mulitmarket segment normalized after the exceptionally strong second quarter, the communications solutions' EBIT was negatively affected by restructuring charges and weak development in its wireless business."