Infineon Technologies AG / Quarter Results
28.04.2010 07:32
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Infineon reports results for the second quarter and provides outlook for
the third quarter and the 2010 fiscal year
NEW OUTLOOK FOR FISCAL YEAR 2010: REVENUE NOW FORECAST TO GROW BY HIGH 30'S
PERCENTAGE; COMBINED SEGMENT RESULT MARGIN OF MORE THAN 10 PERCENT
STRONG SECOND QUARTER RESULTS WITH 10.6 PERCENT SEGMENT RESULT MARGIN
SECOND QUARTER 2010 RESULTS (January 1 to March 31, 2010)
|[![CDATA[|[pre|]]]|]
in Euro million Q2 FY10 Q1 FY10 +/-
Revenues 1,035 941 10%
Combined Segment Result 110 88 25%
Income (loss) from continuing operations 81 (46) + +
Income (loss) from discontinued operations, net (2) 112 - -
of tax
Net income 79 66 20%
in Euro
Basic and diluted earnings (loss) per share from 0.07 (0.04) + +
continuing operations
Basic and diluted earnings (loss) per share from _ 0.10 100%
discontinued operations
Basic and diluted earnings per share 0.07 0.06 17%
|[![CDATA[|[/pre|]]]|]
Neubiberg, Germany - April 28, 2010 - Infineon Technologies AG (FSE: IFX /
OTCQX: IFNNY) today reported results for the second quarter of the 2010
fiscal year, ended March 31, 2010.
Infineon's revenues in the second quarter were Euro 1,035 million,
reflecting another quarter with a strong increase of ten percent compared
to the first quarter and a 55 percent increase year-over-year. Combined
Segment Result was Euro 110 million, a 25 percent increase compared to the
prior quarter. Net income was Euro 79 million compared to Euro 66 million
in the prior quarter.
OUTLOOK FOR THE THIRD QUARTER AND THE FULL 2010 FISCAL YEAR
For the third quarter of the 2010 fiscal year, Infineon expects revenues to
increase by a high single-digit percentage, and combined Segment Result
margin to increase by between two and four percentage points, compared to
the second quarter.
For the 2010 fiscal year, Infineon is updating its outlook as the strong
operating performance of the first half of the 2010 fiscal year is likely
to continue through the end of the fiscal year. The company is now
anticipating that revenues will grow by a high 30's percentage compared
with the 2009 fiscal year, with combined Segment Result margin of more than
ten percent.
'Our strong performance is not only the result of the general economic
recovery but also reflects our continuing strong cost discipline and
confirms our strategic direction. We are now concentrated on and gaining
share in strongly growing market segments with lasting customer
relationships', said Peter Bauer, CEO of Infineon Technologies AG. 'Growth
during the second quarter exceeded our original expectations in the
Automotive, Industrial & Multimarket, and Chip Card & Security segments. At
the same time, we did not see the typical weak seasonal pattern in the
Wireless Solutions segment. We believe that our performance in the current
environment is a clear signal of the direction we anticipate taking for the
rest of this fiscal year. We are therefore again raising our guidance for
the full 2010 fiscal year and are now looking for full year revenue to grow
by a high 30's percentage, with combined Segment Result margin of more than
ten percent.' Previously, the company expected revenue growth in excess of
20 percent with high single-digit combined Segment Result margin.
Revenues in the second quarter increased by ten percent sequentially, due
to strong demand in all of the company's operating segments, with strongest
growth in the company's Automotive (ATV) and Industrial & Multimarket (IMM)
segments. The Wireless Solutions (WLS) business was largely stable and did
not show the expected seasonal weakness, partly supported by the strength
of the U.S. dollar against the Euro. In addition, the strong revenue
increase was again driven by the continuing economic recovery leading to
further improved demand in the supply chain, as well as at the end
customers.
Second quarter combined Segment Result was Euro 110 million, a significant
increase of 25 percent compared to Euro 88 million in the first quarter.
The positive impact of the stronger U.S. dollar on revenues did not have
positive impact on Segment Result as U.S. dollar-denominated-costs also
increased, and due to hedging. Combined Segment Result margin in the second
quarter reached 10.6 percent, up from 9.4 percent in the prior quarter. The
increase in combined Segment Result reflected higher sales levels and fully
loaded production facilities compared to the prior quarter.
For the second quarter, income from continuing operations was Euro 81
million. This compares to a loss from continuing operations of Euro 46
million in the first quarter, which included a non-recurring operating
charge of Euro 81 million in connection with the deconsolidation of ALTIS,
the company's joint venture with IBM in France.
Infineon reported loss from discontinued operations, net of income taxes,
of Euro 2 million for the second quarter.
Net income was Euro 79 million in the second quarter. This represented an
increase of 20 percent compared to net income of Euro 66 million in the
first quarter, which included an after-tax gain of Euro 106 million from
the sale of the Wireline Communications business to Lantiq, which more than
offset the non-recurring operating charge of Euro 81 million in connection
with the deconsolidation of ALTIS. Basic and diluted earnings per share
were Euro 0.07 for the second quarter compared to basic and diluted
earnings per share of Euro 0.06 for the first quarter.
Free cash flow from continuing operations for the second quarter was Euro
141 million. This compares to free cash flow from continuing operations of
Euro 14 million for the first quarter, which included a reduction in cash
of Euro 88 million resulting from the deconsolidation of ALTIS. Capital
expenditures, including capitalized intangible assets, were Euro 63 million
in the second quarter, up from Euro 48 million in the prior quarter,
reflecting both increased investment in the company's production facilities
and capitalization of intangible assets. Depreciation and amortization was
Euro 97 million, compared to Euro 106 million in the prior quarter.
At the end of the second quarter, Infineon's gross cash position was Euro
1,667 million. The slight decrease compared to Euro 1,678 million at the
end of the first quarter, despite strong free cash flow from continuing
operations, was driven mainly by voluntary repurchases of a portion of the
company's subordinated convertible notes due in June 2010, totaling Euro
139 million at book value. Overall, Infineon's net cash position increased
to Euro 995 million as of March 31, 2010, compared to Euro 874 million as
of December 31, 2009.
OUTLOOK FOR THE THIRD QUARTER OF THE 2010 FISCAL YEAR
Assuming a U.S. dollar/Euro exchange rate of 1.40, Infineon expects
revenues for the third quarter of the 2010 fiscal year to increase by a
high single-digit percentage sequentially. Third quarter combined Segment
Result margin is anticipated to increase by between two and four percentage
points compared to the second quarter.
The sequential increase in revenues is anticipated to be driven by the WLS
and IMM segments, while revenues in the ATV and Chip Card & Security (CCS)
segments are likely to stay at the same level as in the second quarter.
UPDATED OUTLOOK FOR THE 2010 FISCAL YEAR
Given the results of the first half of the 2010 fiscal year and current
visibility, Infineon is again raising its guidance for the 2010 fiscal year
as a whole.
The company now expects full year revenues to grow by a high 30's
percentage compared with the 2009 fiscal year, at an assumed U.S.
dollar/Euro exchange rate of 1.40 for the second half of the 2010 fiscal
year. The company anticipates that the year-over-year increase will be
generated by increases in revenues in all of the company's operating
segments, mostly in the ATV, IMM, and WLS segments, with lower revenue
growth anticipated in the CCS segment. Revenues in Other Operating
Segments, mainly from product supply agreements with Lantiq, are still
anticipated to total a low triple-digit million Euro amount.
Infineon expects combined Segment Result in the 2010 fiscal year to improve
considerably from the 2009 fiscal year, with combined Segment Result margin
now anticipated to be more than ten percent.
In light of the dynamic revenue growth, fully loaded production facilities
and planned development milestones, Infineon anticipates that CapEx,
including capitalized intangible assets, will now exceed Euro 300 million
for the 2010 fiscal year, compared to the previous 2010 guidance of up to
Euro 250 million and reported CapEx, including capitalized intangible
assets, of Euro 154 million in the 2009 fiscal year. As previously
announced, depreciation and amortization is expected to decrease to
approximately Euro 400 million in the 2010 fiscal year compared to Euro 513
million in the 2009 fiscal year.
Infineon segments' performance in the second quarter of the 2010 fiscal
year can be found in the quarterly information at http://www.infineon.com.
All figures in this quarterly information are preliminary and unaudited.
ANALYST AND PRESS TELEPHONE CONFERENCES
Infineon Technologies AG will conduct a telephone conference (in English
only) with analysts and investors on April 28, 2010, at 10:00 a.m. Central
European Summer Time (CEST), 4:00 a.m. Eastern Daylight Time (U.S. EDT), to
discuss operating performance during the second quarter of the 2010 fiscal
year. In addition, the Infineon Management Board will host a telephone
conference with the media at 11:30 a.m. (CEST), 5:30 a.m. (U.S. EDT). It
can be followed in German and English over the Internet. Both conferences
will be available live and for download on the Infineon web site at
http://corporate.infineon.com.
IFX FINANCIAL CALENDAR (*preliminary date)
Jun 24, 2010* IFX Day 2010: Analyst and Investor Day
Jul 28, 2010* Earnings Release for the Third Quarter of the 2010 Fiscal
Year
Nov 16, 2010* Earnings Release for the Fourth Quarter and Full 2010 Fiscal
Year
D I S C L A I M E R
This press release includes forward-looking statements and assumptions
about the future of Infineon's business and the industry in which we
operate. These include statements and assumptions relating to general
economic conditions, future developments in the world semiconductor market,
our ability to manage our costs and to achieve our savings and growth
targets, the resolution of Qimonda's insolvency proceedings and the
liabilities we may face as a result of Qimonda's insolvency, the potential
disposition or closure of our ALTIS joint venture, the benefits of research
and development alliances and activities, our planned levels of future
investment, the introduction of new technology at our facilities, our
ability to continue to offer commercially viable products, and our expected
or projected future results.
These forward-looking statements are subject to a number of uncertainties,
including broader economic developments, including the sustainability of
recent improvements in the market environment, trends in demand and prices
for semiconductors generally and for our products in particular, as well as
for the end-products, such as automobiles and consumer electronics, that
incorporate our products, the success of our development efforts, both
alone and with partners,; the success of our efforts to introduce new
production processes at our facilities,; the actions of competitors; the
continued availability of adequate funds, the outcome of antitrust
investigations and litigation matters, and the outcome of Qimonda's
insolvency proceedings, as well as the other factors mentioned in this
press release and those described in the 'Risk Factors' section of our most
recent annual report on Form 20-F on file with the with the U.S. Securities
and Exchange Commission.
As a result, Infineon's actual results could differ materially from those
contained in these forward-looking statements. You are cautioned not to
place undue reliance on these forward-looking statements. Infineon does not
undertake any obligation to publicly update or revise any forward-looking
statements in light of developments which differ from those
anticipated.
Kontakt:
Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987
28.04.2010 07:32 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Deutschland
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: investor.relations@infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hannover, Stuttgart, Hamburg;
Terminbörse EUREX
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DGAP-News: Infineon reports results for the second quarter and provides outlook for the third quarter and the 2010 fiscal year
| Source: EQS Group AG