Chipmaker Infineon Technologies AG said yesterday it turned to a net loss in its fiscal second quarter because of restructuring charges and losses at its communications division.
The Munich-based company lost 114 million euros (US$147.81 million) in the January-March period, compared with a profit of 39 million euros during the same period last year.
Infineon warned that its performance in the current quarter likely would be similar.
Sales in the quarter were down 4 percent to 1.60 billion euros (US$2.07 billion) from 1.67 billion euros a year ago.
The company, Europe's largest chipmaker, said it didn't anticipate any improvement in demand during the current quarter.
"As there are no near-term catalysts for growth in demand, especially in the memory and mobile phone businesses, in the third quarter we will continue to focus on cost-cutting measures and on restructuring non-profitable businesses," the company's chief executive Wolfgang Ziebart said in a statement.
He said Infineon would have to extend its restructuring efforts.
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