FRANKFURT, Nov 8 (Reuters) - Chipmaker Qimonda AG
(QI1Ay.DE: Quote, Profile, Research)(QI.N: Quote, Profile, Research) said Thursday its quarterly operating loss
widened to a worse-than-expected 258 million euros ($378
million) after prices for standard DRAM memory chips fell to
Sales in the German company's fiscal fourth quarter fell 4
percent sequentially and 42 percent from a year ago to 711
According to a Reuters poll, nine analysts expected an EBIT
(earnings before interest and taxes) loss of 236 million euros
on sales of 823 million euros, on average.
Qimonda said it expected to increase bit production, or the
amount of memory it produces, by 5 percent this quarter as it
accelerates a planned transition to smaller circuit structures
to help cut costs.
Qimonda said average selling prices had been 53 percent
lower than a year earlier.
"In light of these difficult market conditions, we have
accelerated our efforts to increase productivity and reduce
costs," the company said in a statement.
"We curtailed our capital expenditures and operating
expenses in the fourth quarter even more than originally
planned, and on the productivity front, we are confident that
we will have more than 50 percent conversion to 80 nanometre
and 75 nanometre in December 2007."
U.S. memory-chip rival Micron Technology Inc (MU.N: Quote, Profile, Research) also
posted a quarterly loss last month, saying prices for both DRAM
and NAND memory chips had fallen about 15 percent from the
Qimonda is majority owned by German chipmaker Infineon
Technologies AG (IFXGn.DE: Quote, Profile, Research), which listed it in New York a year
(To read the Reuters poll on Qimonda's fourth-quarter results,
please double click on [ID:nL07254560])
(Editing by Jeffrey Benkoe)