Infineon Sees Wireless Operations Break-Even In 2-4 Quarters

MUNICH -(Dow Jones)- Infineon Technologies still expects its wireless operation to break even in the next two to four quarters, Chief Executive Wolfgang Ziebart said Friday during a conference call with journalists.

The wireless segment is part of the company's communication solutions, or Com, unit and is the unit's most unprofitable division.

Infineon said the break-even forecast is on the basis of earnings before interest and taxes. In the third quarter the Com division posted a EUR61 million loss.

The weak performance of the Com unit is due to a sales decline experienced by its main customers, Infineon said. BenQ Corp. is one of Infineon's main customers.

Ziebart, however, said the company has already taken up deliveries to its new customers, Samsung and LG Corp. This customer diversification will be reflected in the results in the coming quarters, he said.

Infineon plans to set the issue price for shares of its Qimonda unit in the week beginning Aug. 7, said Peter Fischl, head of Qimonda's supervisory board during the conference call.

Ziebart said he views Qimonda's IPO price range as fairly valued between $16 and $18 per share. Infineon's officials declined to comment on the question whether the IPO will be carried out even if the lower end of the range cannot be reached.

Ziebart said Infineon won't hold its majority stake in Qimonda for long. If the green-shoe option is fully exercised, Infineon will hold around 79% of its unit.

Earlier Friday the chipmaker committed itself to a 190-day lockup period of its Qimonda stake.

Company Web site: http://www.infineon.com

-By Marc Langendorf, Dow Jones Newswires; +49 69 29 725 500; marc.langendorf@dowjones.com

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Posted to the site on 21st July 2006