by 
ERFURT, Germany — The X-FAB Silicon Foundries Group today announced sales of USD 239.3 million (EUR 181.9 million) for the first nine months of 2010. This represents a year-on-year increase of 66 percent. X-FAB’s third-quarter sales revenue was USD 83.2 million (EUR 63.2 million) – an increase of 39 percent compared with the same quarter the previous year.
New bookings in the third quarter were on par with the previous quarter. After the high level of new bookings recorded in the first six months of the year, the book-to-bill ratio as of September 30, 2010 was 1.03.
Earnings before interest and taxes (EBIT) in the first nine months were USD -12.8 million (EUR -9.7 million). This is an improvement of 72 percent or USD 32.3 million (EUR 23.3 million) compared with the same period the previous year. EBIT in the third quarter was USD -6.2 million (EUR -4.7 million), a year-on-year improvement of 43 percent.
Chris Förster, CFO of the X-FAB Silicon Foundries Group, commented on the company’s business development: “The extremely high demand recorded in the first half of the year has now levelled off to reflect current market conditions. At year's end, we will achieve our target of increasing sales by 50 percent compared with 2009, and will report a net profit. Our goal for 2011 is to record double-digit sales growth.”
Many times I wonder whenever there is finance issues the first option governments find is to increase taxes whether on people or on corporates. Cant they take other measures like reducing money spend on elections, government trips, pay cuts and so on.
Brain drain is a very common and natural phenomenon happens in almost all the field, especially in technological side. The rate of brain drain is much higher in technological field, especially in IT sector, when compare with the other fields. This may be because of better packages, work culture or for career growth. The recent decision taken by Ireland government fasten this phenomenon, either by forcing the companies to move away or the employees to move away as a part of tax savings. In both case it’s not good for the nation’s economic side and industrial growth sector.
I propose we stop calling nations “tigers.” It never ends well.
If Ireland does not find a way maintain its tax base, they can potentially start loosing US employers who have invested Billions. If that happens, that will hurt the country even further. When the new government is in place, they will need to find a way to cut their cost while keeping the taxes relatively competitive. I agree that raising taxes is not the only answer, yet it is the first one that governments flock to when faced with a fiscal crisis.
The world in general is faced with a financial crisis and the countries that offered incentives for foreign corporations and manufacturers are not able to sustain them. This may translate into manufactureres having to absorb increased cost across the board. Maybe this is an opportunity – albeit a small one – for the US to bring back some jobs that we have lost.
There is no doubt about it that if corporate taxes are increased further, American companies would consider pull out. After all its business and in business the first policy is to make money. The reason why they go out of US is less cost and less taxes and more profit. Unless the market is really huge that even after the high taxes they make money which definitely doesnt seem to be the case.
I wonde why Ireland government is trying to impose taxes on the Technlogy firms if they know for sure that it would impact the jobs. When even the UK prime minister is willing to invest and welcome the hi tech firms to set up the next silicon valley in london why would Ireland want to loose something that it already have.
Sp, Taxation – direct or indirect is a major revenue venture for any goverment. Election on the hand is not a yearly occurrence, trips I'm sure is a necessity. I believe the government would have assessed and evaluated other sources of income.”
Marc, Maybe so. Once Celtic, now what?Any suggestions?
It will be penny wise, pound foolish for the Irish government to try to play with current incentives that made it the Celtic Tiger at a time when England is proposing its own silicon vallley. It will make it definitely easy for investors to just travel down to London along with the skilled labor. A delicate balance at this time with IMF conditions which may be the cup of poison that will kill the Irish economy.
This is a crisis that is bound to have ramifications across national borders and will impact big banking institutions in Gemrany, UK and France which have a good amount of exposure in Ireland. The core of the problem is in the financial sector, with circumstances akin to those that existed during th sub-prime in US. This reminds of what happened earlier in Greece and it seems Ireland will have to follow the austerity advice of Big Brothers in the Euro zone!
Backorder, I guess the Eurozone and Britain also understood your concern on the longterm ramification of the Irish crisis, hence the late Sunday unanimous passing of the “Euro bail out” for the Irish Tiger.
Sad but true. Unfortunately, I think many more nations will face the same fate before things get better. I hope these cases will be a testament to proper foresight and the downside of pure speculation (in all industries).