Infineon Technologies (IFNNY) posted lower-than-expected four quarter profits Wednesday but lifted its margin guidance for the near-term amid the strengthening U.S. dollar.
The Neubiberg-based chipmaker, whose customers include Apple (AAPL - Get Report) and Samsung Electronics (SSNLF) ,said revenues for the three months ending in September came in at €1.675 billion, up 4.8% from the same period last year. Operating profit, however, fell 2% to €280 million, slightly below analysts' forecast of €285 million.
Infineon said its gross margin for the quarter was 36.3%, down from 36.6% in Q2 and nearly 3 basis points lower than in the same period last year. When adjusted for special items, including the group's €23 million acquisition of International Rectifier, the gross margin was reported at 37.7%.
The company, which is the world's largest power semiconductor maker and the second-largest automotive chipmaker, supplies to a wide range of clients globally, including Bosch (BSWQY) , Panasonic (PCRFY) , Boeing (BA - Get Report) and Midea. The list also includes those in digital security industry such as Gemalto (GTOMY) and Safran's (SAFRY) security arm.
For the 2017 fiscal year, however, Infineon sees its operating margin at around 17%, up from a previously forecast 15%, based on a stable euro exchange rate of 1.1 against the U.S. dollar and year-on-year revenue growth of 6%.
Infineon shares rose around 0.21% to €16.43 by 09:45 CET in Frankfurt, extending the 3-month gain to around 5.7%.
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