Munich-based Infineon said it expected revenues in the year to Sept. 30 to grow by 4 to 7 percent, lifting the lower end of the range by a percentage point from earlier guidance, and assuming an exchange rate of $1.25 to the euro.

Quarterly revenues were 1.836 billion euros, up 4 percent year on year and 3 percent quarter on quarter. That was just shy of the company's guidance and the average expectation of 1.856 billion euros in a Reuters poll of 11 analysts.

"Our order books are bulging," Chief Executive Reinhard Ploss said in a statement. "We therefore are very confident that we will achieve our revenue targets for the 2018 fiscal year."

Segment result, a measure of profitability across Infineon's operating units, rose 6 percent year-on-year to 315 million euros compared with average expectations of 298 million, while margins expanded to 17.1 percent.

Adjusted earnings per share were 26 euro cents, compared to poll expectations of 21 cents.

Infineon forecast sequential revenue growth of 3 percent, plus or minus 2 percentage points, in the third quarter, with a segment margin of around 17 percent.

(Reporting by Douglas Busvine; Editing by Victoria Bryan and Maria Sheahan)