Infineon evaluates options for fiber business
In its financial results statement, Infineon said that it was “preparing strategic options for Fiber Optics by carving out the business into a separate legal entity.”
“[Infineon] is in the process of evaluating potential strategic partners to maximize the value of the business,” continued the statement.
Revenues for Infineon’s Wireline Communications group were Euro 107 million ($134 million) in the final quarter of 2003, down 12 percent from the previous quarter, and up 1 percent year-on-year.
The sequential revenue decrease was due mainly to lower revenues in the fiber-optics market, partially offset by growth in access product revenues. Revenues were also negatively impacted by the weakening of the US dollar against the Euro, and ongoing price declines.
Infineon manufactures a wide range of fiber-optic components, including lasers, receivers, VCSELs, transceivers and parallel optical links. Earlier this year, it announced a manufacturing agreement with Taiwan’s United Epitaxy Company (see Infineon and UEC in opto components tie-up).
Despite seeking to offload its Fiber Optics business, Infineon said that its sees “solid growth for its Wireline Communications business group in the current fiscal year [ending September 30, 2004]”.
Overall the world’s sixth largest semiconductor manufacturer had revenues of Euro 1.62 billion for the last quarter of 2003, a decrease of 8 percent sequentially, but an improvement of 13 percent on a year-on-year basis. The sequential revenue decrease was due mostly to continued price decline throughout all business segments, as well as the negative impact of exchange rates.
The company is generally optimistic about 2004. “All business indicators show that the semiconductor industry is finally in an upswing phase. The worst crisis ever experienced in the semiconductor market seems to be over,” commented Ulrich Schumacher, Infineon’s president and CEO. “With the market back on track, we also see positive business development for the current fiscal year. All segments are expected to show stable growth in 2004.”
