By Mauro Orru
Infineon Technologies AG (IFX.XE) said Wednesday that net profit and revenue for the first quarter of its fiscal year fell amid a difficult environment.
The German chip maker said net profit for the quarter ended Dec. 31 fell to 210 million euros ($232 million) from EUR254 million in the first quarter last year, while revenue decreased to EUR1.92 billion from EUR1.97 billion.
Infineon said in November 2019 that it expected revenue to drop roughly 7% year-on-year in the first quarter.
"Under difficult conditions, revenue fell in line with expectations," said Chief Executive Reinhard Ploss, adding that "we do not expect to see a broad based recovery of demand before the second half of the fiscal year."
The company reported a gross margin of 37% for the quarter, down from 39.5% for the same period last year, while its closely watched segment result margin fell to 15.5% from 18.2% last year.
Infineon said it continues to expect year-on-year revenue growth of 5% for 2020, plus or minus 2%, with a segment result margin of about 16%.
Write to Mauro Orru at email@example.com; @MauroOrru94