Voices » Infineon

Qimonda Up 80 Percent on $845M Bailout From Infineon, Others

Tiernan Ray — Mon, 22 Dec 2008 16:40:55 +0000

By Tiernan Ray, Blogger, Barron’s, Tech Trader Daily

As initially reported over the past week by outlets including Reuters and Bloomberg, Qimonda (QI), the Munich-based maker of DRAM that’s been on death watch for some time, announced yesterday that it has obtained a 605 million euro investment from a combination of investors–including parent Infineon Technologies (IFX), which holds a 77.5 percent stake in the company, and the Federal Republic of Germany. That amounts to roughly $845 million at current exchange rates. The company said the financing comes in the form of a 150 million euro loan from the German state of Saxony, a 100 million loan from “a leading financial institution in Portugal” and a 75 million euro loan from Infineon, plus 280 million euros from the German Republic, of which Qimonda is in “advanced negotiations” concerning a 150 million euro portion.

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Infineon Shares Plunge 40 Percent on Grim Outlook

Eric Savitz — Wed, 03 Dec 2008 20:33:15 +0000

By Eric Savitz, Blogger and Columnist, Barron’s, Tech Trader Daily

Infineon (IFX) shares are down sharply this morning after the company provided an extremely grim outlook for the fiscal first quarter ending December and for all of fiscal 2009.

In the third quarter, the German chipmaker posted revenue of 1.15 billion euros, up 12 percent sequentially and two percent year over year. The company posted a loss before interest and taxes of 220 million, due in part to charges of 253 million euros for cost-reduction measures. The net loss from continuing operations was 244 million euros, or 0.33 euros per share.

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Highly Leveraged Chip Stocks Sell Off on Refinance Worries

Eric Savitz — Mon, 22 Sep 2008 20:27:54 +0000

By Eric Savitz, Blogger and Columnist, Barron’s, Tech Trader Daily

It’s been a rough day for highly-leveraged semiconductor stocks.

In a research note this morning, Citigroup’s Glen Yeung provided a review of the credit liabilities of the chip companies Citi has under coverage. He notes that Advance Micro Devices (AMD), Spansion (SPSN), Infineon (IFX) and Qimonda (QI) all have debt coming due in the next 15 months. “In each instance, we point out that an already difficult financial position is compromised by the current credit market,” Yeung noted.

He also noted that AMD, MU and QI also rank among the chip companies with the worst interest coverage ratio.

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