Semiconductor manufacturer

Infineon

(IFX)

said its third-quarter loss narrowed from a year ago as revenue was up 10% on improved demand.

The company posted a loss of 76 million euros, or 0.11 euros a share, compared with a loss of 371 million euros, or 0.59 euros a share, in the year ago quarter. Sequentially, net loss narrowed by 1%.

Total revenue was up 10% from a year go to 1.4 billion euros, also a 1% sequential increase. The company said in a statement that the improvement was driven by increased demand for security controllers in mobile communications and banking, and steady demand for automotive and power products.

Revenue outside Europe accounted for 56% of the toal, up from 55% in the second quarter.

Looking ahead, Infineon said it expects some continued demand improvement in the second half, but didn't provide specific guidance. "The market outlook for the second half of 2002 shows signs of a moderate improvement in demand; however, Infineon expects market conditions with strong pricing pressure in most of the company's business groups to remain in the months ahead," the company said.

Shares of Infineon were climbing more than 2% in Germany on the news.