Infineon Technologies AG / Quarter Results
30.04.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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SECOND QUARTER WITH GOOD PROGRESS ON COST REDUCTIONS
STRONG IMPROVEMENT FOR THIRD QUARTER REVENUES AND COMBINED SEGMENT RESULT
EXPECTED
SECOND QUARTER 2009 RESULTS (January 1 to March 31, 2009)<pre>
in Euro million Q2 FY09 Q1 FY09 +/-
Revenues 747 830 (10%)
Segment Result (110) (102) (8%)
Loss from continuing operations (150) (116) (29%)
Loss from discontinued operations, net of tax (108) (288) 63%
Net loss (258) (404) 36%
in Euro
Basic and diluted loss per share from continuing (0.20) (0.16) (25%)
operations
Basic and diluted loss per share from (0.12) (0.34) 65%
discontinued operations
Basic and diluted loss per share (0.32) (0.50) 36%</pre>
Neubiberg, Germany - April 30, 2009 - Infineon Technologies AG (FSE: IFX /
OTCQX: IFNNY) today reported results for the second quarter of the 2009
fiscal year, ended March 31, 2009.
Infineon's revenues in the second quarter were Euro 747 million, down 10
percent sequentially and 29 percent year-over-year. Infineon's combined
Segment Result was negative Euro 110 million, compared to negative Euro 102
million in the first quarter. Included in combined Segment Result was
non-recurring Euro 33 million from the reduction of accruals for bonuses
and incentives.
'Our progress with cost reduction measures was very good and revenues were
as forecast despite a challenging operating environment. During the first
half of the 2009 fiscal year, we reduced capital expenditures and working
capital aggressively in order to contain free cash outflows. Finally, we
successfully implemented the most effective cost-reduction program Infineon
has ever had', said Peter Bauer, CEO of Infineon Technologies AG.
The sequential decrease in revenues reflects a decline in four of the
company's five operating segments. The segments Industrial & Multimarket
(IMM), Chip Card & Security (CCS) and Wireline Communications (WLC) saw the
strongest percentage declines in revenues. Revenues of the Automotive (ATV)
segment also decreased, whereas revenues of the Wireless Solutions (WLS)
segment were driven by market share gains and increased compared to the
first quarter, despite of the shrinking market. Excluding the effects of
currency fluctuations and acquisitions and divestitures, revenues decreased
11 percent sequentially and 32 percent year-over-year.
Net loss from continuing operations for the second quarter was Euro 150
million, resulting in basic and diluted loss per share from continuing
operations of Euro 0.20. For the prior quarter, net loss from continuing
operations was Euro 116 million, and basic and diluted loss per share from
continuing operations was Euro 0.16.
The loss from discontinued operations, net of tax, was Euro 108 million for
the second quarter. Basic and diluted loss per share from discontinued
operations was Euro 0.12. On January 23, 2009, Qimonda AG and its wholly
owned subsidiary Qimonda Dresden GmbH & Co. oHG filed an application at the
Munich Local Court to open insolvency proceedings. As a result of this
application, Infineon deconsolidated Qimonda during the second quarter. In
this context, the company recognized a loss of Euro 100 million primarily
resulting from the recognition of accumulated currency translation effects,
previously recognized in equity. The recognition of such accumulated losses
did not have any impact on Infineon's shareholders' equity.
For the second quarter, Infineon reported group net loss of Euro 258
million, and basic and diluted loss per share of Euro 0.32.
In the second quarter, Infineon reduced inventories aggressively compared
to the prior quarter, including by lowering production levels again from
the already low levels in the first quarter. As a consequence, inventories
declined 18 percent sequentially and net working capital was reduced by
Euro 72 million during the second quarter. This decrease included cash
inflow of Euro 95 million from the German bank deposit protection fund
following the insolvency of Lehman Brothers and cash outflows of Euro 56
million in connection with the IFX10+ cost-reduction program. All in all,
Infineon was able to contain free cash outflow to negative Euro 22 million
in a quarter that may have marked the low-point for revenue and production
levels.
During the quarter, the company repurchased a total nominal amount of Euro
35 million of its exchangeable bonds for about 20 million Euro in cash.
SAVINGS OF ABOUT EURO 60 MILLION REALIZED IN OPERATING EXPENSES UNDER
IFX10+
In the second quarter, Infineon made continued progress with cost
reductions under the IFX10+ program. The fast implementation of the IFX10+
measures was supported by the organizational structure introduced at the
beginning of the 2009 fiscal year. In operating expenses, the company saved
approximately Euro 60 million compared to the fourth quarter of the 2008
fiscal year, equating to annualized savings of about Euro 240 million in
operating expenses alone. In the second quarter, the company has made very
good progress with respect to the planned workforce reductions. Total
headcount stood at fewer than 26,400 employees at the end of March 2009 as
compared to 29,100 at the end of September 2008.
In order to reduce costs further going forward, Infineon announced reduced
working hours and implemented unpaid leave at all German operations.
Infineon does not expect to incur expenses or cash outflows in relation to
these measures.
OUTLOOK FOR THE THIRD QUARTER
REVENUES TO INCREASE, SEGMENT RESULT TO NARROW SIGNIFICANTLY
Although visibility still remains limited, Infineon expects group revenues
for the third quarter to increase by approximately 10 percent compared to
the second quarter. The increase in revenues will be within all segments,
but driven in particular by the WLS segment.
Infineon reduced inventories aggressively during the quarter. Given this
reduction and given some signs of stabilization in the demand environment,
the company can carefully adjust production back to levels more
commensurate with current shipments and customer forecasts. Together with
the benefits of higher sales levels and further cost reductions, Infineon
therefore expects combined Segment Result to improve significantly in the
third quarter, with negative mid-to-high single-digit combined Segment
Result margin.
UPDATE OUTLOOK FOR THE 2009 FISCAL YEAR
Considerable uncertainties regarding the developments in the fourth quarter
remain. However, given results for the first six months and the outlook for
the third quarter, Infineon expects revenues for the 2009 fiscal year to
decrease by more than 20 percent compared to the 2008 fiscal year. The
company continues to expect Infineon's Combined Segment Result to decrease
significantly and to be negative.
Infineon has reduced further its CapEx budget, including capitalized
intangible assets, for the 2009 fiscal year, which is now expected to be in
the range of Euro 170 million to Euro 190 million, down from an already
reduced budget of Euro 250 million at the start of the fiscal year and
compared to Euro 370 million in the prior fiscal year. Depreciation and
amortization is expected to be around Euro 500 million, up from the planned
level of about Euro 450 million at the beginning of the 2009 fiscal year.
'In this challenging environment, we further need to have a tight grip on
expenses. Strategically, Infineon is positioned well. We address the future
growth markets which will gain even more in importance in the future with
our three core topics energy efficiency, communications, and security. The
recent customer endorsements from Bosch and Toyota in automotive power
products and from Nokia in single-chip platforms for GSM/GPRS and EDGE
illustrate the competitiveness of our product offering and our customers'
faith in our operations', Peter Bauer said.
The Infineon segments' performance in the second quarter of the 2009 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 30, 2009, 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 2009 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)
- Jul 29, 2009 Earnings Release for the Third Quarter of the 2009 Fiscal
Year
- Nov 19, 2009* Earnings Release for the Fourth Quarter and Full 2009
Fiscal Year
New in the IFX podcast section at www.infineon.com/podcast
- Technology of the Future: Software Defined Radio
D I S C L A I M E R
This press release includes forward-looking statements about the future of
Infineon's business and the industry in which we operate. These include
statements 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 benefits of research and development alliances
and activities, our planned levels of future investment, the introduction
of new technology at our facilities, the continuing transitioning of our
production processes to smaller structure sizes, and our continuing ability
to offer commercially viable products.
These forward-looking statements are subject to a number of uncertainties,
including broader economic developments, including the duration and depth
of the current economic downturn; 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
availability of funds, including for the re-financing of our indebtedness;
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 the annual report of Infineon on Form 20-F filed with the U.S.
Securities and Exchange Commission on December 29th, 2008.
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.
Contact:
Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987
DGAP 30.04.2009
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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: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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DGAP-News: Infineon reports results for the second quarter of the 2009 fiscal year and provides outlook for the third quarter and the full fiscal year
| Source: EQS Group AG