InterDigital Inc (IDCC)

[thelurker]

Infineon Forecasts Sales Growth as Loss Beats Expectations
By Ragnhild Kjetland

July 29 (Bloomberg) -- Infineon Technologies AG, Europe’s second-largest maker of semiconductors, forecast sales growth in the fourth quarter after reporting a smaller loss than analysts had expected.

Infineon rose as much as 7.3 percent in Frankfurt. The third-quarter net loss attributable to shareholders narrowed to 24 million euros ($34 million) from 292 million euros in year- earlier period, Infineon said in a statement today. Analysts had predicted a net loss of 40.9 million euros, according to estimates compiled by Bloomberg.

“The company benefits from rising demand but the figures also show that the management is doing the right things to turn the business around,” said Bernd Laux, an analyst at Credit Agricole Cheuvreux in Frankfurt, who has an “outperform” rating on the stock, in a telephone interview today. “The company is cutting costs and new products have helped to win market share in the wireless business in recent months.”

Revenue will rise in the fourth quarter from the third, the Neubiberg, Germany-based company said. Infineon has suffered as the automotive industry’s sales dropped, reducing demand for its semiconductors. That has partly been made up by chip sales to mobile-phone makers such as LG Electronics Inc. and Apple Inc. Infineon this month sold its Wireline Communications unit to focus on growth in remaining markets.