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Infineon Posts Eighth Straight Loss

Infineon Technologies AG on Tuesday posted its eighth consecutive quarterly net loss – E328 million ($356.5 million), triple its year-earlier loss – despite a 13 percent rise in revenue to E1.48 billion.

The company is the second-largest semiconductor manufacturer in Europe. Infineon and rivals in its main business – making memory chips for personal computers – have suffered through two years of depressed demand and falling prices. In the market for memory chips, only Samsung Electronics Co. has shown a profit for the most recent quarter.

Ulrich Schumacher, Infineon president and chief executive, told analysts during a conference call that while the company had improved its revenue and market share, it could not compensate for the dramatic decline in prices of memory products.

Infineon said that demand from computer manufacturers for memory – which accounts for more than 40 percent of the company’s sales – had picked up. But analysts warn that the outlook is dependent on corporate replacement cycles and increased investment in infrastructure.

Analysts said the results were laced with higher-than-usual extraordinary expenses, especially those for inventory depreciation. Onetime charges totaled E157 million in the quarter.

Andrew Griffen, a Merrill Lynch Co. analyst, said that when viewed on a “clean basis” – that is, without extraordinary charges – the loss per share was about 24 cents, or a slight improvement over the 25 cents Merrill had predicted.

“The revenues were better than analyst consensus,” another analyst for Merrill Lynch said. “We had expected E500 million in memory division revenues, which actually came in at E609 million.”

Viktor Dammann, financial analyst at Bank Vontobel in Zurich, said the “good news” was that the cost of making a 256-megabyte chip – including research and development, depreciation and sales channels – had dropped to E5.40, 50 cents lower than expected. “This was mainly due to a steep increase in production,” he said.

Infineon said memory-chip productivity had reached more than 6,000 wafer-starts per week after upgrading its state-of-the-art 300-millimeter facility in Dresden, which accounted for 40 percent of its dynamic random-access memory production in the quarter.

Journey To Prague

American pilots in Europe are constantly amazed that, in a Skyhawk, you’re often just two hours away from another country. (See related story on how an American with a PPL can rent and fly airplanes in Europe.)

Ten years ago, at the dusk of the Cold War, a trip from Munich to Prague, one of Old Europe’s most beautiful and elegant cities, would have been unheard of. But on a recent sunny autumn afternoon, two friends and I made that two-hour flight. It was both a piece of cake and the thrill of a lifetime.

The Route From Munich to Prague direct is just under two hours, but I’d thought up an interesting little sidetrip to Ceske Budojovice (Budweis). This would be both a leg-stretcher as well as a pilgrimage of sorts to one of beer-lovers’ most holy spots: birthplace of the Czech Budweiser brewery. I figured on a brief stop there, and then we’d depart for the 35-minute leg to Prague.

The return flight would be direct. Nothing could be simpler.

Red Tape
In Europe, the radio work is still in English, and Jeppesen makes the maps in English, too. But the Red Tape Factor was becoming a supreme worry in making my flight plan, as I couldn’t seem to get a straight answer to the procedure for crossing the German/Czech border. Something about a NATO Identification Zone kept coming up, which sounded mildly alarming to say the least!.

In the end, after many phone calls and several blind leads, it turned out to be as simple as a flight from Miami to the Bahamas: a simple filing, in English, of an ICAO International Flight plan form.

Okay, the Czechs are a bit more procedural than their Bahamian counterparts, but it’s essentially the same thing: the plan must include your exact time, altitude and the place where you’ll cross the border. A little nervous about getting all that right, I held off on filing my plan until I picked up my plane at Munich Flyers Flight Club in Augsburg airport, just west of Munich. There I got a final weather briefing (confirming the predicted clear skies and 20kt headwind at 10,000 feet), and faxed off the plan.

I’d verified my intentions by phone with Prague Flight Information regarding the stop in Budweis, and had meticulously noted checkpoints along the entire route to ensure I crossed the border just where I said I would, about four miles north of Philippsreut, a village nestled in the Bavarian Forest.

I phoned Munich Flight Information right after filing my plan, and they assured me that everything was okay. With that, I got out Cessna D-EHMB, a 172, and was in the process of fueling when the airport loudspeaker blared, “Pilot of Cessna Delta-Echo Hotel Mike Bravo, contact Munich Information!”.

My flight plan, it seemed, had been ixnayed by Czech Authorities, who now said that there were no customs officials in Budweis – it was direct to Prague or nothing. The idea of hours of flight planning down the commode and then hastily planning a direct route to Prague while sitting in the cockpit didn’t strike me as particularly pleasant, but we reached a compromise: keep the original flight plan, but turn left over Budweis and head up to Prague.

Munich Airport – Europe’s busiest during peak hours – doesn’t provide flight following services as such, but would give me a transponder code and keep vague track of my progress, ensuring I didn’t venture into restricted airspace or veer glaringly off course.

And, I’m almost sad to report, the flight was almost extraordinary in its ordinariness.

I’d secretly hoped for bizarre instructions, exciting NATO complications and cloak-and-dagger intrigue – perhaps the odd MiG scramble at the border. But the flight was as routine as they come. Well, there was something: finding checkpoints was difficult because each and every town we flew over looked identical! Cluster of red-roofed houses with a church in the middle? Why, that’s clearly Dingolfing..or Straubing.. or Deggendorf ..or possibly Ingolstadt!!.

With the help of a goond flight plan (and, okay, a great GPS and the help of two very keen passenger/navigators), we reached the border transition area spot on time. Munich Flight information handed us off to Prague Information, who gave us permission to climb to 11,500 feet and cross the border. We were in!!.

To save a bit of time, they let us turn left heading 06 degrees on a beeline for Prague, rather than subjecting us to the farce of overflying the now forbidden city of Budweis.

Flight Level Five Five
English may be the language of the skies here, but you’d best speak very slowly and clearly: controllers are used to conversing with non-native speakers, who use a more formal – if stilted – version of the language.

Transition levels in Europe are different from those in the US, where it is above 18,000 feet. About 15 minutes south of Prague, at 9,500 feet, I had a little moment of confusion when the controller then told me to “descend to flight level five five.”.

I replied, thinking I was being clear, “Mike Bravo, leaving niner thousand five hundred for flight level five five, that’s five thousand five hundred feet”, and got back, “Cessna Mike Bravo, I say again, Flight Level Five Five.” .

Allrighty. “Mike Bravo is leaving niner thousand five hundred for flight level five five, that’s five thousand five hundred feet,” I said, slower and even clearer.

“Cessna Mike Bravo, I repeat again,” he said, audibly put out by my rebellious behavior, “descend to Flight Level Five Five.” .

We probably could have gone on all day like that had I not just shut up and said “Roger, Flight Level five five!” And descended to 5,500 feet.

Turns out that was the right thing to do for the wrong reason: As my friend Michel McAloon wrote to correct me, “In most ICAO countrues the published transition altitude may be as low as 3000 feet. Pilots when climnbing through the transition altitude are expected to change their altimiters to the QNE standard of 1013.25 hecopascals (29.92 inches Hg).

Buzzing The Rooftops
Despite that hiccup, things were going swimmingly, and having abandoned my flight plan I was happy to quit looking at the map and let the Prague controllers call my every turn. Prague Info handed me off to Prague tower, and I saw the city just ahead, but I hadn’t ever landed there and couldn’t see the actual field, so I was a bit trepidatious. But I’d figured that, since they had me heading 06, I must be on a straight-in approach to runway 06, right?.

“Cessna Delta-Echo Hotel Mike Bravo, descend to maximum 2000 feet, QNH 1023 and turn left bearing 310 degrees”.

Hmm. Confirm the altimeter setting and..that seems a little, uh, low, as I’m about 500 feet above the ground at this point. My front seat passenger, a Brit, says alto voce “I can see bloody dogs on the ground we’re so bloody low!”.

He’s right, but this is seriously fun; actually instructed to barrel in low over the hillsides and rooftops, with the city of Prague now off my right wing and my passengers boisterously humming Wagner’s Flight of the Valkyries.

The hills dropped away and we were now at the relatively sane height of about 800 feet above the rooftops. I finally saw the airport just ahead, but we were number two after an Austrian 737. The tower asked us to, “make now a left turn for one orbit” (more controllers’ stilted English), then to fly right along over runway 31, turning left just past it to enter the left downwind for runway 06.

I’ve gotten used to shorter, European airstrips so I put it down gently right on the numbers. I was in the midst of telling my passengers, “On behalf of Air Nick, I’d like to welcome you to Prague” when I noticed we could have taken off and landed again in the distance it took for us to trundle over to Taxiway Charlie – Runway 06 is 12,188 feet!.

And then began the rock star treatment: the Follow-Me car was a nice touch, and our plane was met by a minivan bearing the gracious Mr Vlastimil Sovak of the Czech Airports Authority Handling Agency who cheerfully offered hotel booking assistance, information on getting to town by taxi or public transport, and then whisked us off to our own private customs and passport control while our plane was refueled. He even made the exchange office employee cut short his lunch hour so we could get busfare to the center!.

Prague is a spectacularly gorgeous city, and it’s so old its “new town” dates to the 15th century. Alas, flying directly over the spectacular city center is forbidden.

20 minutes after leaving the airport, just outside the Staromestska subway station, we were treated to a sweeping view across the Charles Bridge to the magnificent Prague castle, home to Czech royalty since the 9th century. It seemed that around each corner was another architectural masterpiece!.

We spent the evening wandering Prague’s ancient cobblestone streets, and shopping for the justifiably famous Czech glassware. That night, while I caught up on sleep, my two passengers set out to do the town’s lively bars and clubs, sampling the famous beer and, I’m told, getting treated to several on the strength of the tale of their journey.

The next morning we headed back to Augsburg with no barreling, no low passes, and nary a MiG to be seen. With the exception of a slight detour over a restricted area just inside the German airspace I’d somehow (ahem!) overlooked in my flight plan, the return flight was, technically, eventless.

Isn’t it amazing how technically eventless flights can leave you with memories for a lifetime?

An Autobahn Experience

With the dollar so far down against the Euro, it feels as if the only favorable exchange rate left to Americans is one of distance: you still get 1.6 kilometers for every mile.

When the crowds of the Oktoberfest have taken their toll, and you’ve just about overdosed on museums and local sights, it’s time to head out on your own.

The famous autobahns, the freeways that make up Germany’s wonderful highway system, and the country’s compact size mean that within a half-hour of Munich’s center you can be driving through rolling green hills with the Alps practically at your feet.

And when you consider that Chiemsee, Salzburg, Vienna, Baden-Baden and Strasbourg are all within day-trip reach, the proposition gets even more attractive.

But while Americans are among the world’s most dynamic drivers, covering incredible distances each year by car, many here find themselves facing a whole new set of baffling rules and practices that amount to an entirely different driving culture.

Passed At 110
“I was going about 110 mph – fast enough to be dragged away in handcuffs at home,” said Mark Walsh, a Chicago native living in Munich, “and I got passed by a guy on a motorcycle with a passenger!”

An American driving on the autobahn is very likely to have just that sort of disconcerting experience 10 or even 15 times during an hour’s drive. On U.S. highways, getting from Point A to Point B may be the primary objective, but in Germany, it’s not just getting there, but how fast you can possibly do it.

Here’s How It Can Be
A black Mercedes appears in my rear-view mirror. It wasn’t there when I looked a second ago, and now it’s bearing down on me with great vigor. An angry flash of headlights – it’s almost on my rear bumper! I swerve frantically into the right lane and the black beast accelerates past me as if I were standing still, leaving swirling exhaust fumes and a turbo whine in the air. I glance at my speedometer: It reads 180 km/h – 113 miles per hour.

“Every German driver is convinced of two things,” says Munich native Oliver Bengl. “First, that they are an excellent driver, and second, that everyone else on the road is an execrable one.”

Bengl is exceptionally qualified to comment – he’s been a professional driver on Germany’s roads and autobahns for 10 years, in everything from Munich taxis to long-distance freight trucks, from film company vans to one of Bavaria’s most beloved vehicles, beer delivery trucks.

Wind in the Hair
Bengl suspects that Germans, who behave extremely conservatively in everyday life and business, simply need the release of high speed and feeling the wind in their hair – even if that wind is just the light puff of their car’s air conditioner.

“The average German,” he says, “spends his day in close contact with very conservative people. When he gets into his big car at the end of the day, he reverts to a Stone Age hunter mentality – he’s King of the Road.”

This assertive on-road demeanor has resulted in gesticulation (at best) and sometimes even physical fights at the roadside. It is for that reason that it is now a misdemeanor in Germany to “gesture obscenely or shout insults” at other drivers, punishable by a large fine.

Speed aside, driving on the autobahn is a very enjoyable mode of transport that can even be cheaper than public transportation if you’re traveling with someone. And contrary to public belief, there are speed limits on about 85 percent of the autobahns.

Speed limit signs are red-ringed circles containing a number. On autobahns it will usually be 110 or 120 kilometers an hour (70-75 mph). Speed traps occur rarely, but they do happen. If you don’t see a sign, there’s probably no speed limit.

All other road signs are international symbols and almost always instantly understandable.

One key exception is the puzzling circle containing a striped black slash over a blank white background.

This means, basically, “Any sign telling you not to do something before you saw this one is now overruled.” For example, the “slash” sign can end a no-passing zone.

The Kreuz
The Kreuz – the German version of a cloverleaf interchange – can be very confusing, too, even to veteran German drivers.

Modeled after, it would seem, Los Angeles’ most confusing transfer points, a Kreuz connects several highways. Signs are not what they could be, and it’s best to slow down and pay attention: Exits come up fast, and if you miss yours, it’s usually a long drive to get to where you can turn around and try again. The best strategy is to stay in the middle lane until you can figure out which way is off, then get there fast.

And Bengl adds one warning: “No matter how fast you go, someone’s going to be faster; no matter how clear your rear-view mirror is, check again… . There’ll be someone there.”

While traffic is outwardly more orderly than in the States, there’s vicious competition for passing lanes, usually from taxis.

The best bet for inexperienced drivers is to stick to defensive tactics, staying slow and safe and letting the taxis do what they wish.

There will be a far higher number of bicyclists on the streets than you may be used to, and while they usually have a separate lane, be on alert. Motorcycles and scooters are also more popular than in the States, and it’s considered very bad form indeed to sideswipe any of them.

Finally, remember that there is no right on red law in Germany.

The Island That Time Forgot

At least once a month, a few dozen Amelia Island residents don Civil War uniforms, move into Fort Clinch and live like 19th-century soldiers and citizens. No one around here bats an eye, but then again this is an island of eccentrics. Lots of them.

“We didn’t have no mosquitoes down here,” explains merchant Bob Lannon, in a rich southern drawl, “before you Yankees started comin’.”

“That’s an interesting theory,” says Roger Esckelson, who runs the Book Loft, right next door, “seeing as how Bob’s from New Hampshire.” Then without missing a beat, Esckelson asks, “Want to see some of the mastodon bones I found this morning?”

Since 1562, northeastern Florida’s Amelia Island has been ruled by French and Spanish, English and Patriots, Confederates and Yankees.

At the turn of the century, Fernandina Beach was one of the most luxurious resort areas in the south. And the island’s American Beach was Florida’s only beach resort for blacks (see accompanying story).

But when Henry Flagler’s famous railroad brought wealthy Northerners farther and farther south, Amelia Island was left to rot in peace.

“Everybody just left,” said James Perry, curator of the Amelia Island Museum of History, the state’s only oral history museum. “It was a Pompeii-like flash – the boom was over and the town was frozen in time.”

Loving Restoration
The town was laid out in just the sort of Victorian style that makes entrepreneurs’ hearts sing, “What a place for a B&B!” Over the last 20 years, the town has been lovingly restored and a turn-of-the-century time-traveler would feel at home walking through the Historic Downtown District with its railway terminal, Palace Saloon and cobblestone streets.

Many area homes (including the one used in the 1988 Disney classic “Pippi Longstocking”) have been renovated and refurbished.

Today, those who make their home on Amelia are a tightly knit community. Non-residents are referred to as “off-islanders,” and residents are free to be as quirky and eccentric as they wish.

But what’s so arresting about the island is the open hospitality in every shop, restaurant, B&B and motel.

Islanders Bob and Karen Warner are used to people walking through their home, which happens to be the oldest hotel in the state of Florida. At various times and in various incarnations, their Florida House Inn (1857) has been host to Cuban freedom-fighter Jose Marti and Ulysses S. Grant, as well as to Rockefellers and Carnegies.

Today it’s a decadently comfortable B&B, whose restaurant is one of the best values – price, food and service – in the state (see “If You Go”).

They Visit, They Stay
Every year just before Christmas, the Florida House and eight other historic inns take part in the Amelia Island Christmas Tour. It attracts more than 1,300 visitors who listen to the histories, admire the restoration work, check under the beds and look into the closets for skeletons of a long ago past.

“I can name a dozen people who have stayed with us and then moved here,” says John Kovacevich, who, along with his wife, Rita, runs the Hoyt House, one of the B&Bs included on the tour. “And that’s not because of Rita and me or the resorts or the beaches, but because of the island – it’s so welcoming that it just grabs you.”

The Downtown Historic District is the main draw of Fernandina Beach, though other attractions are to be found on the island. The beaches are about two miles east of the city.

The Amelia Island Museum of History is in the former city jail (1879-1975). Volunteer-led tours are conducted Monday through Saturday at 11 a.m. and 2 p.m.

The exhibits, while fascinating in and of themselves, are secondary to the oral history from the volunteers. Highlights are the Galleon Room, dedicated to Spanish explorers and gold ships, with not much treasure but heaps of artifacts, and the old drugstore soda fountain upstairs.

The museum conducts two-hour walking tours in the Downtown Historic District by appointment and strolls of Centre Street on Thursdays and Fridays at 3 p.m.

The neo-Gothic Episcopal St. Peter’s Parish (1881-1884) features impressive stained-glass windows and a magnificent Harrison organ. It’s at the corner of 8th Street and Atlantic Avenue. Great sign outside in a no parking zone: Thou Shalt Not Park.

Civil War Re-enactments
The U.S. government began construction of Fort Clinch, to the east of the town, in 1847. Today the fort is open as a state park, and re-enactors (whom most call authentic and whom others call nuts) hold open house garrison weekends, candlelight viewings and candlelight tours at least once a month, featuring demonstrations of the weaponry (the cannon are loud!), fireplace cooking, the fully equipped Civil War infirmary and the jail. The fort by candlelight is beautiful, and the re-enactors – who sleep in the fort during the garrison weekends to help them stay in character – are a treat, whether they’re playing Yankee or Confederate troops (they do both).

At the island’s southern end is American Beach, part of Florida’s Black Heritage Trail, a summer resort primarily for blacks but open to everyone.

At its heyday, American Beach catered to throngs of Northern blacks, who boarded buses that would arrive 40 and 50 at a time. Blacks owned the motel, the restaurants, the nightclubs.

Black entertainers performing at clubs in Jacksonville would head up to American Beach after their sets and play the rest of the night at the Ocean Rendezvous, then the resort’s largest nightclub. That club also hosted concerts by Ray Charles, Count Basie, Duke Ellington and other stars of the day.

Ghost of a Resort
After desegregation the beach became less attractive than beaches closer to home, and business dried out. Though the resort remains open, it is a ghost of its former self. And surrounded by big business in the form of a multimillion-dollar resort complex, local residents worry that some of the 35 families who call the beach home will sell out to golf-course building developers.

You can visit for a tour any time. Resident and unofficial mayor MaVynee Betsch is always happy to guide tours personally, and she operates the American Beach Museum out of a small mobile home parked at the corner of Gregg and Lewis streets.

The most notable feature of the American Beach coastline today is the absence of the high-rise condominium and hotel towers that line the sand immediately to the north and south. Horseback tours, available at the southern end of Amelia Island, sometimes clop by; fishermen flock to this relatively deserted stretch, and camping is permitted in summer.

The stretch of coastline controlled by the town is, like the beaches on the rest of Amelia Island, made up of fine white sand that gets sprinkled with sharks’ teeth and fossils for about two hours before and after a tide change. You can almost always see locals out hunting and gathering these in the morning and afternoon.

Where are the Nuclear Wessles?

subphotoI’d come to Severodvinsk, about an hour from Arkhangelsk, to see the submarines. An expatriate Italian bartender living in Arkhangelsk had told me I could take pictures of Soviet-built atomic-powered submarines right from the city’s harbor.

‘Course, what he didn’t mention was that Severodvinsk was a “Closed City” – that is, off limits to foreigners even these days – because it’s a storage area for the Soviet-built atomic-powered submarines that park in its harbor. Formerly it was closed because it was a staging area for the nuclear gear that used to be transported to the islands of Novaya Zemlya, back when the Soviet Union was doing above-ground nuclear testing there.

The bartender assured me that, while the city was closed, it wasn’t “very closed” .

After about an hour of looking on my own (I had taken bus No 3 on a three-loop tour of the city before realizing I was going in circles), I finally asked a kid where the subs were (“Excuse me, where are the nuclear submarines?” – which I pulled off with a dignity equal to that of Ensign Chekhov, who asked the same question of a San Francisco cop in Star Trek V) and was directed to a fence at the end of a long, deserted street.

The “fence” turned out to be the entrance to some sort of naval facility, and as I passed the boundary (there was no one guarding it) I realized that from that point on, no amount of pleaded ignorance would help me if I – an American with a camera in a Russian military facility – were caught.

The water was now in sight, the subs just across the harbor from where I stood, but between them and me, moored at the docks, were two large gunships, sporting several large and rather vicious looking guns fore and aft.

A man with a face of stone and wearing an officer’s uniform stood between me and the subs.

“Hi!” I said, with a smile, “May I take a photograph”

The officer looked at me a and grinned, and said, “Why not?”

There were about eight black submarines parked just across the water, but far enough away to make my photographs look as if they were taken by a spy satellite in the 1960s. Still, I got the shots.

I looked over to one of the gunships and saw on board a young woman in a pink coat looking around ear the bridge. As I walked back past the gangplank, I asked the officer if I could take a look around on bord.

He smiled again and said, “Of course, go right up.”

I saw the bridge, and the guns, but I started to get a little nervous; my Russian’s good enough to say what I had said so far, but anything ese would be a hopeless stretch, and I wanted to get out of there fast.

On my way out, a much more senior looking officer approached me with a look of investigatory intent.

“What is he doing here?” he asked, looking at me but speaking to the officer who had let me on board.

“He’s taking an excursion,” said the first.

The senior officer looked at me, rubbed his chin thoughtfully and said to the officer, “You know, we really ought to set up a ticket booth out here.”