Chipmaker Infineon reported a 10% revenue growth despite the increase in price of raw materials
Infineon Technologies reported third quarter financial results with revenue up by €320 million or 10 percent to €3,618 million, compared with €3,298 million in the previous three month period.
There was a significant increase in revenue in the Automotive (ATV) and Power & Sensor Systems (PSS) segments, as well as a slight increase in the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments.
There was also a slight increase in the gross margin from 42.9 percent to 43.2 percent. The Segment Result was €842 million, compared with €761 million in the second quarter of the 2022 fiscal year.
The third-quarter non-segment result was a net loss of €152 million, compared with a net loss of €143 million in the second quarter, due to related to increased cost of goods sold, €62 million relating to selling, general and administrative expenses and €7 million relating to
research and development expenses.
Operating profit was €690 million, up from €618 million in the previous three-month period.
Profit from continuing operations improved to €525 million, up from €469 million in the previous quarter.
The profit for the period was €517 million, up from €469 million in the previous quarter and basic earnings per share from continuing operations rose to €0.40, compared with €0.36 in the previous quarter.
Free Cash Flow improved to €440 million, up from €120 million in the previous three-month period while the net cash provided by operating activities from continuing operations rose to €996 million, compared with €615 million in the second quarter of the 2022 fiscal year.
Outlook for the fourth quarter
Based on an assumed exchange rate of US$1.05 to the euro, Infineon expects to generate revenue of around €3.9 billion in the fourth quarter of the 2022 fiscal year, a 8 percent growth compared with the third quarter.
The revenue forecast for 2022 stands at around €14 billion compared with the previous forecast of €13.5 billion.