Infineon, a leading supplier of microchips to the auto industry, on Thursday, bumped up its segment result margin outlook for fiscal 2023 to adjust for currency effects as it came in slightly below revenue expectations for its first quarter.
The Munich-based company's revenue fell five percent from the previous quarter to 3.95 billion euros (S$5.67 billion) in the quarter ending December 31, slightly under the 4 billion euros expected in a poll of analysts by Vara Research published on Jan. 24.
Infineon's segment result margin rose to 28 percent from 25.5 percent the previous quarter, beating expectations of 24.7 percent.
The company maintained its full-year revenue outlook of around 15.5 billion euros, plus or minus 500 million euros, despite a less favourable assumed exchange rate, but now expects a segment result margin of 25 percent from a previous 24 percent.
Infineon also said investments for the full year are still expected to amount to approximately 3 billion euros.
Chief Executive Jochen Hanebeck said automotive and industrial demand has been strong while there was significantly weaker demand in areas such as smartphones, PCs and data centres.
"Substantial parts of our business have proved robust even in a weaker macroeconomic environment," he said.
For the second quarter, Infineon expects revenue of around 3.9 billion euros and a segment result margin of around 25 percent.