Germany-based semiconductor manufacturer Infineon Technologies reported fiscal second-quarter revenues of EUR 747 million, down 29 percent from EUR 1.05 billion in the year-earlier quarter. The Automotive, Industrial & Multimarket (IMM) and Chip Card & Security (CCS) segments saw the strongest percentage declines in revenues. Revenues of the Wireline Communications segment also decreased, whereas revenues of the Wireless Solutions segment were driven by market share gains and increased compared to the first quarter, despite the shrinking market. Excluding the effects of currency fluctuations and acquisitions and divestitures, revenues decreased 32 percent year-over-year. The net loss for the three months to March narrowed to EUR 258 million or EUR 0.32 basic and diluted loss per share from a net loss of EUR 1.96 billion or EUR 2.03 basic and diluted loss per share. Cash and cash equivalents amounted to EUR 532 million at the end Q2. The company repurchased a total nominal amount of EUR 35 million of its exchangeable bonds for about EUR 20 million in cash during the quarter.

Infineon expects group revenues for the third quarter to increase by approximately 10 percent compared to the second quarter. The increase in revenues will be within all segments, but driven in particular by the WLS segment. Together with the benefits of higher sales levels and further cost reductions, Infineon expects combined segment result to improve significantly in the third quarter, with a negative mid-to-high single-digit combined segment result margin.

Infineon forecasts revenues for the fiscal year to decrease by more than 20 percent compared to fiscal year 2008. The company continues to expect Infineon's combined segment result to decrease significantly and to be negative.