Infineon Technologies ( IFX) swung to a profit in its fiscal first quarter, as strong sales in its recently divested memory business helped offset challenges in its wireless business.

The German chipmaker on Monday reported revenue of 2.13 billion euros, or $2.75 billion, in its fiscal first quarter, compared with 1.67 billion euros a year ago.

Excluding sales from Qimonda ( QI), Infineon's former memory-chip business, Infineon posted sales of 958 million euros.

Infineon's net income was 120 million euros, or 0.15 euros a share, vs. a net loss a year ago of 183 million euros.

The company spun off Qimonda last year to exit the volatile memory business and focus on making chips for the automotive, industrial and communications business. The company still has an 85% stake in Qimonda.

The new plan hit a speed bump in September when cell phone maker BenQ, an important Infineon customer, went bankrupt, prompting Infineon to lay off 400 workers.

In the first quarter, Infineon's communications business saw sales plummet 21% sequentially as a result of the BenQ bankruptcy. The communications group lost 57 million euros in earnings before interest and taxes.

Infineon's automotive and industrial business saw sales slip 4% sequentially, due to what Infineon said were seasonal effects and weak U.S. car production.

If you liked this article you might like

AMD Unveils New Profit Goals

AMD Unveils New Profit Goals

AMD Relying on Chip Do-Over

AMD Relying on Chip Do-Over

Intel Slashes Revenue Forecast (Update)

Intel Slashes Revenue Forecast (Update)

Intel Slashes Revenue Forecast

Intel Slashes Revenue Forecast

Street Frowns on Hostile Fight for Atmel

Street Frowns on Hostile Fight for Atmel