German chipmaker Infineon Technologies AG reported a 3% decline in revenue for its first fiscal year 2020 quarter that ended Dec. 31 when compared to the December quarter in 2019.
Revenues for the quarter reached 1.9 billion Euros (about $2.09 US billion) while net income declined by 17% over a year earlier, reaching 210 million Euros (about $231 US million).
“Under difficult conditions, revenue fell in line with expectations,” CEO Reinhard Ploss said in a statement issued Wednesday. Cost reduction measures are beginning to take hold, and the company’s latest generation silicon microphones are showing dramatic growth along with improvement in the company’s server chip business, he added.
However, Ploss said the company does not expect a broad-based improvement in demand before the second half of the fiscal year, starting in April.
Infineon last year announced plans to buy Cypress for $10 billion. That deal is expected to close at the end of the current quarter in late March.
RELATED: Cypress purchase by Infineon opens “great potential” in IoT, CEO says
By market segments, Infinion’s Automotive, Industrial Power Control and Power Management groups all saw revenue declines of about 7% over the previous quarter.
For all of fiscal 2020, Infinion expects revenues to grow by 5% compared to fiscal 2019, plus or minus 2 percentage points.
Infineon’s stock price jumped nearly 10% to $24.30 in trading Wednesday afternoon.
RELATED: Infineon sees 4% revenue growth despite sluggish economy