German semiconductor maker Infineon Technologies saw an increase of 4% in revenues in the quarter that ended June 30 compared to a year earlier, hitting 2.015 billion Euros ($2.2 billion under current exchange rates).
“Infineon remains on course,” CEO Reinhard Ploss said in a statement Thursday. “Although the economy remains sluggish, group revenue again grew in the third [fiscal] quarter.”
All four segments of the company had slightly higher revenues. They include automotive (44% of total revenues), industrial power control (18%), power management and multimarket (30%) and digital security solutions (8%).
Ploss said Infineon’s pending purchase of Cypress for about $10 billion is a “landmark step in Infineon’s strategic development.” Cypress technology will enable Infineon to strengthen its core power semiconductor business. The transaction is expected to close by the end of the year or early in 2020. Both company’s boards have approved the deal.
In the current quarter, Infineon expects 1% revenue growth over the June quarter, with single digit decreases in revenue for industrial power control and digital security solutions. Power management and multimarket will grow faster than average while auto will grow in line with average for all the segments.
Revenues for the entire fiscal year should increase to 8 billion Euros ($8.9 billion) up from the previous year amount of 7.6 billion Euros.
The company employs about 40,100 workers in 35 research locations and 17 manufacturing plants.