Infineon Technologies AG / Quarter Results
07.02.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Infineon reports results for the first quarter and provides outlook for the
second quarter and the 2008 fiscal year
FIRST QUARTER 2008 RESULTS (October 1 to December 31, 2007)<pre>
in Euro million Q1 FY08 Q4 FY07 +/-
Revenues Infineon excluding Qimonda 1,090 1,127 (3%)
Revenues Qimonda 513 711 (28%)
Revenues Infineon Group 1,603 1,838 (13%)
EBIT Infineon excluding Qimonda 65 (25) +++
EBIT Qimonda (433) (216) ---
EBIT Infineon Group (368) (241) (53%)
Net loss Infineon Group (396) (280) ---
Basic and diluted loss per share (in (0.53) (0.37) ---
Euro)</pre>
Neubiberg, Germany, February 7, 2008. Infineon Technologies AG today
reported results for the first quarter of the 2008 fiscal year ended
December 31, 2007.
Revenues for Infineon excluding Qimonda in the first quarter of the 2008
fiscal year were Euro 1.09 billion, down three percent sequentially and up
14 percent year-over-year. The sequential decline reflects higher revenues
in the Communication Solutions segment and lower revenues in the
Automotive, Industrial & Multimarket segment. Excluding effects from
currency fluctuations, primarily between the U.S. dollar and the Euro, and
acquisitions and divestitures, revenues for Infineon excluding Qimonda
declined three percent sequentially and rose 15 percent year-over-year.
EBIT for Infineon excluding Qimonda was Euro 65 million in the first
quarter, up from negative Euro 25 million in the prior quarter. EBIT in the
first quarter included a net gain of Euro 11 million, reflecting a gain of
Euro 28 million from the sale of part of the companys interest in its
high-power bipolar business, which was partly offset by charges of Euro 17
million, reflecting a write-off of acquired in-process research &
development (R&D) of Euro 14 million relating to the mobile phone business
acquired from LSI and restructuring expenses of Euro 3 million. Fourth
quarter EBIT included net charges of Euro 94 million, mainly relating to
the sale of Qimonda shares. Also included in EBIT for the first quarter of
the 2008 fiscal year were Euro 9 million for the amortization of
acquisition-related intangible assets related mainly to the business
acquired from LSI.
The Automotive, Industrial & Multimarket segment reported in the first
quarter of the 2008 fiscal year revenues of Euro 743 million, representing
a nine percent decrease compared to the prior quarter and five percent
growth year-over-year. The sequential revenue decline was mostly due to the
deconsolidation of the high-power bipolar business and the effects of the
currency fluctuations, primarily between the U.S. dollar and the Euro.
Excluding these effects, segment revenues decreased four percent
sequentially and grew 13 percent year-over-year. Segment EBIT was Euro 93
million compared to Euro 102 million in the prior quarter. Included in the
first quarter segment EBIT was a gain of Euro 28 million from the sale of
part of the companys interest in its high-power bipolar business. Segment
EBIT for the fourth quarter did not include any net gains or charges.
In the Communication Solutions segment revenues in the first quarter of the
2008 fiscal year were Euro 356 million, up 12 percent compared to the prior
quarter and up 51 percent year-over-year. Excluding the effects of the
currency fluctuations, primarily between the U.S. dollar and the Euro, and
the contribution from the mobile phone business acquired from LSI and the
DSL CPE activities acquired from Texas Instruments, segment revenues
increased 31 percent year-over-year and one percent sequentially. Segment
EBIT for the first quarter improved to negative Euro 11 million, compared
to negative Euro 14 million in the prior quarter. Included in the segment
EBIT for the first quarter was a write-off of Euro 14 million of acquired
in-process R&D in connection with the acquisition of the mobile phone
business of LSI. The segment reached its earnings goals, as anticipated.
Also included in the segment EBIT for the first quarter was the
amortization of acquired intangible assets of Euro 9 million relating
mainly to the mobile phone business acquired from LSI. Segment EBIT for the
fourth quarter did not include any net gains or charges.
In the first quarter, Infineon reported group revenues of Euro 1.60
billion, net loss of Euro 396 million, EBIT of negative Euro 368 million,
and basic and diluted loss per share of Euro 0.53.
'In line with our turnaround plan, results for Infineon excluding Qimonda
showed solid year-over-year improvements in the first quarter of the 2008
fiscal year, and in particular, both the wireless business and the total
Communication Solutions segment reached the goals we set for them', said
Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies AG. 'For
the 2008 fiscal year, we expect reasonably steady performance from our
Automotive, Industrial and Multimarket segment and significant improvements
for the Communication Solutions segment year-over-year. We continue to
target 10 percent EBIT margin for the 2009 fiscal year, although uncertain
prospects for the global economy, the adverse currency development, and the
revised outlook are headwinds that make reaching this goal more
challenging.'
OUTLOOK FOR THE SECOND QUARTER OF THE 2008 FINANCIAL YEAR
For the second quarter of the 2008 fiscal year, Infineon expects revenues
for its segments excluding Qimonda to decrease by a mid single-digit
percentage compared to the first quarter. The company anticipates EBIT for
its segments excluding Qimonda and before net gains or charges to decline
from the prior quarters level, but to remain positive with low
single-digit EBIT margin. In the second quarter, Infineon expects net gains
or charges to be insignificant.
Automotive, Industrial & Multimarket (AIM): In the second quarter of the
2008 fiscal year, Infineon expects revenues of its Automotive, Industrial &
Multimarket segment to be approximately flat compared to the prior quarter,
in line with the usual seasonal pattern. Segment EBIT margin is expected to
be in the range of eight to nine percent. Revenues in the segments
automotive business are expected to increase compared to the first quarter
despite ongoing weakness in demand from U.S. car manufacturers and annual
price reductions for major customers. Revenues in the industrial &
multimarket business are anticipated to decline due to the usual seasonal
pattern in the consumer, computing and telecom markets. Results in the
security & ASICs business are anticipated to remain broadly unchanged
compared to the prior quarter due to strong demand for chip cards.
Communication Solutions (COM): Revenues in the Communication Solutions
segment are expected to decline by a mid-teens percentage in the second
quarter of the 2008 fiscal year compared to the prior quarter. This is
expected to be driven mainly by typical wireless seasonality, but also by
lower than expected volumes in certain mobile phone platform projects. The
broadband business is anticipated to stabilize on the low level of the
prior quarter. Segment EBIT is anticipated to follow the revenue decrease
and to come in at approximately negative Euro 30 million before net gains
or charges.
Qimonda: In the second quarter of the 2008 fiscal year, Qimonda expects its
bit production to be up by a mid single-digit percentage compared to the
first quarter. Additionally, Qimonda has begun to reassess its capacity
corridors with foundry partners in light of the relatively low DRAM market
price environment.
Other Operating Segments and Corporate and Eliminations: In the second
quarter, Infineon expects revenues and EBIT before net gains or charges in
Other Operating Segments and Corporate and Eliminations to remain broadly
unchanged compared to the prior quarter. Infineon expects net gains or
charges to be insignificant.
OUTLOOK FOR THE 2008 FINANCIAL YEAR
For its segments excluding Qimonda, Infineon currently expects revenues to
increase by a high single-digit percentage year-on-year. EBIT for its
segments excluding Qimonda and before net gains or charges in the 2008
fiscal year is anticipated to be positive with low to mid single-digit EBIT
margin.
Automotive, Industrial & Multimarket (AIM): The forecast for the
Automotive, Industrial & Multimarket segment for the 2008 fiscal year
remains unchanged. Infineon still expects segment revenues to be down
slightly compared to the 2007 fiscal year. Excluding net gains or charges,
segment EBIT is anticipated to decrease slightly year-on-year.
Communication Solutions (COM): Revenues in the Communication Solutions
segment are expected to return to growth beginning with the third quarter
of the 2008 fiscal year. For the full year, Infineon now expects
year-on-year revenue growth of 25 to 30 percent in the segment. Segment
EBIT is anticipated to be negative and result in a low to mid single-digit
negative EBIT margin before net gains or charges, including amortization of
acquisition-related intangible assets of around Euro 25 million.
Qimonda: Qimonda is currently targeting an increase in its bit production
for the 2008 fiscal year of 30 to 40 percent, compared with its prior
estimate of about 50 percent, taking into account an accelerated reduction
of 200 millimeter capacities, partly offset by productivity improvements
through conversion to 80 nanometer and 75 nanometer technologies. Qimonda
continues to expect bit demand for DRAM to be driven by continued solid
growth in graphics, consumer and communication applications and the move to
higher density modules in the PC market. The share of bit-shipments for use
in non-PC applications is anticipated to be greater than 50 percent for the
full fiscal year. Qimonda has reduced its target for capital expenditures
for the 2008 fiscal year to a range of Euro 400 to 500 million. As part of
the saving measures, the construction of a new 300 millimeter fab in
Singapore has been put on hold pending improved market conditions. Qimonda
has reduced its targets for R&D and Selling, General & Administrative
(SG&A) expenses for the 2008 fiscal year. It currently expects R&D expenses
in the range of Euro 430 to 460 million and SG&A expenses in the range of
Euro 200 to 220 million.
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 February 7, 2008, at 10:00 a.m.
Central European Time (CET), 4:00 a.m. Eastern Standard Time (U.S. EST), to
discuss operating performance during the first quarter of the 2008 fiscal
year. In addition, the Infineon Management Board will host a telephone
conference with the media at 11:30 a.m. (CET), 5:30 a.m. (U.S. EST). 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
www.infineon.com.
Segments 2008 first quarter performance and additional major business
highlights can be found in the quarterly information at
http://www.infineon.com.
IFX FINANCIAL AND TRADE FAIR CALENDAR (*preliminary date)
- Feb 12, 2008 Analyst Presentation at the Mobile World Congress in
Barcelona
- Feb 14, 2008 Annual General Meeting of Shareholders
- Apr 23, 2008* Earnings Release for the Second Quarter of the 2008
Fiscal Year
- Jun 2/3, 2008* IFX Day: Annual Analyst and Investor Day
- Jul 25, 2008* Earnings Release for the Third Quarter of the 2008
Fiscal Year
- Dec 03, 2008* Earnings Release for the Fourth Quarter and Full 2008
Fiscal Year
New in the IFX podcast section at www.infineon.com/podcast
- Ultra-low-cost mobiles a truly innovative concept
- Radar in cars
- The transistor turns 60
- World's smallest protection diode
- What is a RF-Transceiver?
D I S C L A I M E R
This discussion includes forward-looking statements about our future
business. These forward-looking statements include statements relating to
future developments in the world semiconductor market, including the market
for memory products, Infineons future growth, the benefits of research and
development alliances and activities, our planned levels of future
investment in the expansion and modernization of our production capacity,
the introduction of new technology at our facilities, the continuing
transitioning of our production processes to smaller structure sizes, cost
savings related to such transitioning and other initiatives, our successful
development of technology based on industry standards, our ability to offer
commercially viable products based on our technology, our ability to
achieve our cost savings and growth targets, and the continued development
of the business of Qimonda as a stand-alone entity and any future corporate
financing measures Infineon or Qimonda may undertake. These forward-looking
statements are subject to a number of uncertainties, including trends in
demand and prices for semiconductors generally and for our products in
particular, the success of our development efforts, both alone and with our
partners, the success of our efforts to introduce new production processes
at our facilities and the actions of our competitors, the availability of
funds for planned expansion efforts, the outcome of antitrust
investigations and litigation matters, as well as the other factors
mentioned herein and those described in the 'Risk Factors' section of the
annual report of Infineon on Form 20-F filed with the U.S. Securities and
Exchange Commission on December 7, 2007. As a result, our actual results
could differ materially from those contained in the forward-looking
statements. Infineon does not intend or assume any obligation to update or
revise these forward-looking statements in light of developments which
differ from those anticipated.
Contact:
Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987
DGAP 07.02.2008
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Language: English
Issuer: 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, Hannover, München, Hamburg, Düsseldorf, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) NYSE
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DGAP-News: Infineon reports results for the first quarter and provides outlook for the second quarter and the 2008 fiscal year
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