Germany's Infineon Technologies AG was among the biggest decliners in the semiconductor sector Thursday, after the company said it expects sequentially flat sales and said its CEO will resign.
Infineon, which makes a wide range of chips used in the automotive, communications, computer and other industries, said Thursday flat sales, combined with various expenses, will likely lead to a decline in pretax earnings for the fiscal third quarter. On Monday, the company said its chief executive, Wolfgang Ziebart resigned.
In a note to investors, Credit Suisse analyst Adrien Bommelaer said he'd remain cautious on the company's shares, due in part to management uncertainties and continued losses at Qimonda and uncertainty regarding its disposal. Infineon holds a majority stake in memory chip maker Qimonda AG.
U.S.-traded shares of Infineon fell $1.17, or 12 percent, to $8.79 in midday trading. In the past 52 weeks, the stock has traded between $6.26 and $18.74.
American Depositary Shares of Munich-based Qimonda fell 23 cents, or 5.7 percent, to $3.84. The stock has traded in the 52-week range of $3.04 and $17.29.
Fairchild Semiconductor International Inc., meanwhile, rose 24 cents to $14.85. Friedman, Billings, Ramsey analyst Craig Berger said the company's tone at FBR's Spring Investor Conference Wednesday was upbeat, and kept an "Outperform" rating on the stock.
"Fairchild Semi's tone was positive, hinting that bookings and order trends have strengthened since the firm provided guidance in mid April," the analyst wrote, adding that this could mean the company is tracking toward the high end of its sales guidance of sequentially flat to 3 percent higher sales.
Elsewhere, Intel Corp., the world's largest chip maker, slipped 27 cents to $23.20.
The Philadelphia Semiconductor Sector Index slid 0.20 to 408.70.
Terms & Conditions
RSS Headlines
Fool UK