Chipmaker Infineon warned that it anticipates a larger operating loss and flat sales for its communication chips unit this quarter. Infineon cites delays in shipping a single chip solution for Nokia's ultra low-end phones. Just last month Infineon had said the deal was on track. Infineon shares fell 7.8 percent on the news.
The chipmaker had previously forecasted higher sales and a narrower operating loss for the communications chips division. Compounding the problem is the fact that the company had received lower-than-expected orders for another project that involved HSDPA chips for an unknown device customer. Infineon last month had won business with Samsung for HSDPA chips.
Earlier this month, Infineon CEO Wolfgang Ziebartstep announced plans to step down at the end of June after the German company last quarter reported its biggest loss since it was floated by Siemens in 2000.
To read more on Infineon's woes:
- check out this report in FT.com
Rumor du jour: HSDPA iPhone coming in June. See this HSDPA iPhone story