BERLIN, Aug 5 Reuters German chipmaker Infineon narrowed the range for its fullyear revenue outlook on Monday after it missed expectations for thirdquarter revenue amid halting recovery in its target markets.

The company reported thirdquarter revenue of 3.702 billion euros 4.04 billion, falling short of the 3.8 billion euros forecast in a companyprovided consensus but increasing 2 from the prior quarter due to growth in the power and sensor systems and automotive segments.

The recovery in our target markets is progressing only slowly. Prolonged weak economic momentum has resulted in inventory levels in many areas overlaying end demand, said Infineon Chief Executive Jochen Hanebeck.

The segment result grew 4 quarteronquarter to 734 million euros, with a margin of 19.8, coming in above expectations.

In a market environment that remains challenging, Infineon continues to hold up well, said Hanebeck, adding that the company is further strengthening its competitiveness through its cost savings programme announced earlier this year.

For the full year, Infineon now expects revenue of around 15.0 billion euros, versus prior guidance for 15.1 billion euros 16.3 billion, plus or minus 400 million euros, for the year.

Infineon shares fell 1.9 in premarket trade at brokerage Lang Schwarz.

1 0.9149 euros

Reporting by Miranda Murray, Editing by Friederike Heine

Source Reuters