Infineon Technologies AG / Quarter Results
28.07.2010 07:32
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Quarter Results / Final Results
Infineon reports results for the third quarter and provides outlook for the
fourth quarter and the 2010 fiscal year
3Q 2010 RESULTS: EURO 1,209 MILLION SALES AND 13.5 PERCENT SEGMENT RESULT
MARGIN
THIRD QUARTER 2010 RESULTS (April 1 to June 30, 2010)
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in Euro million Q3 FY10 Q2 FY10 +/-
Revenues 1,209 1,035 17
Combined Segment Result 163 110 48
Income (loss) from continuing operations 121 81 49
Income (loss) from discontinued operations, net 5 (2) +++
of tax
Net income 126 79 59
in Euro
Basic earnings (loss) per share from continuing 0.11 0.07 57
operations
Basic earnings (loss) per share from discontinued 0.01 - +++
operations
Basic earnings per share 0.12 0.07 71
Diluted earnings (loss) per share from continuing 0.11 0.07 57
operations
Diluted earnings (loss) per share from - -
discontinued operations
Diluted earnings per share 0.11 0.07 57
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Neubiberg, Germany - July 28, 2010 - Infineon Technologies AG (FSE: IFX /
OTCQX: IFNNY) today reported results for the third quarter of the 2010
fiscal year, ended June 30, 2010.
Compared to the second quarter, Infineon's third quarter revenues grew
strongly by 17 percent to Euro 1,209 million. Combined Segment Result was
Euro 163 million, a significant increase of 48 percent compared to the
prior quarter. Net income rose 59 percent sequentially, to Euro 126 million
from Euro 79 million in the prior quarter.
'After a challenging 2009 fiscal year, we are executing extremely well in
the current up-cycle. We have come a long way in improving profitability
and are now beginning to take aim at our ambitious goal of 15 percent and
greater overall Segment Result margin', said Peter Bauer, CEO of Infineon
Technologies AG.
SUMMARY OUTLOOK FOR THE FOURTH QUARTER AND THE FULL 2010 FISCAL YEAR
For the fourth quarter of the 2010 fiscal year, Infineon expects a high
single-digit percentage increase in revenues and an increase in Segment
Result margin of one to two percentage points.
Given the results for the first nine months and the outlook for the fourth
quarter of the 2010 fiscal year, Infineon is now anticipating revenue
growth for the 2010 fiscal year compared to the 2009 fiscal year to be a
mid to high 40's percentage, up from a high 30's percentage in the previous
outlook. Infineon now expects Segment Result margin for the full year to be
a low teens percentage. The company now anticipates investments of more
than Euro 400 million, up from an earlier guidance of more than Euro 300
million.
'Our high level of innovation and our strong customer relationships are
driving strong growth in the 2010 fiscal year and should lead to further
market share gains. Within our current portfolio of activities, last
quarter marked an all-time-high for Segment Result margin and free cash
flow was yet again solidly in excess of Euro 100 million', said Peter
Bauer, CEO of Infineon Technologies AG.
DETAILED REVIEW OF THE GROUP FINANCIALS OF THE THIRD QUARTER OF THE 2010
FISCAL YEAR
Revenues in the third quarter increased by 17 percent sequentially to Euro
1,209 million, reflecting strong demand in all of the company's operating
segments, especially driven by the Wireless Solutions (WLS) and Industrial
& Multimarket (IMM) segments. In addition, the stronger U.S. dollar
contributed about five percentage points of sequential revenue growth.
Third quarter combined Segment Result was Euro 163 million, a significant
increase of 48 percent compared to Euro 110 million in the second quarter.
Whilst the stronger U.S. dollar had a positive effect on revenues, there
was no benefit on the Segment Result level, mainly due to hedging expenses
and increases in U.S. dollar-denominated-costs. Nonetheless, combined
Segment Result margin in the third quarter reached 13.5 percent, in-line
with guidance and up from 10.6 percent in the prior quarter.
For the third quarter, income from continuing operations was Euro 121
million, up from Euro 81 million in the second quarter. Infineon reported
income from discontinued operations, net of income taxes, of Euro 5 million
for the third quarter, up from a loss of Euro 2 million in the preceding
quarter. Resulting net income for the group was Euro 126 million in the
third quarter. This represented an increase of 59 percent compared to net
income of Euro 79 million in the second quarter. For the third quarter,
basic earnings per share were Euro 0.12 and the diluted earnings per share
were Euro 0.11, compared to Euro 0.07, basic and diluted, for the second
quarter.
Investments, which the company defines as the sum of purchases of property,
plant and equipment, purchases of intangible assets and capitalized
research & development (R&D) assets, were Euro 117 million in the third
quarter, up from Euro 63 million in the prior quarter, reflecting increased
investments in the company's production facilities. Depreciation and
amortization remained almost unchanged at Euro 96 million, compared to Euro
97 million in the prior quarter. Despite the strong increase in capital
spending, free cash flow from continuing operations for the third quarter
was Euro 134 million, down only slightly from Euro 141 million for the
second quarter.
At the end of the third quarter, Infineon's gross cash position was Euro
1,514 million. The decrease compared to Euro 1,667 million at the end of
the second quarter, despite strong free cash flow from continuing
operations, was driven mainly by the scheduled repayment of the company's
2010 convertible notes with a nominal value of Euro 255 million. The strong
free cash flow generation drove an increase in Infineon's net cash position
to Euro 1,108 million as of June 30, 2010, compared to Euro 995 million as
of March 31, 2010.
Detailed outlook for the fourth quarter of the 2010 fiscal year: High
single-digit sequential sales growth and an increase in Segment Result
margin of one to two percentage points
Assuming a U.S. dollar/Euro exchange rate of 1.30, Infineon expects
revenues for the fourth quarter of the 2010 fiscal year to increase
sequentially by a high single-digit percentage. Fourth quarter combined
Segment Result margin should post an increase of one to two percentage
points from third quarter levels.
The sequential increase in revenues is expected to be driven mainly by the
WLS segment, with the IMM and Chip Card & Security (CCS) segments growing
at a slower pace. ATV revenues are expected to stay approximately flat.
DETAILED OUTLOOK FOR THE 2010 FISCAL YEAR: MID TO HIGH 40'S YEAR-OVER-YEAR
REVENUE GROWTH WITH LOW TEENS SEGMENT RESULT MARGIN; INVESTMENTS TO TOTAL
MORE THAN EURO 400 MILLION
Given the results of the first three quarters of the 2010 fiscal year and
the fourth quarter outlook, 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 mid to high 40's
percentage compared to the 2009 fiscal year, at an assumed U.S. dollar/Euro
exchange rate of 1.30 for the last quarter of the 2010 fiscal year. This
compares to a previous expectation of a high 30's percentage for sales
growth. Combined Segment Result margin is now expected to be a low teens
percentage of revenue.
After several quarters of fully loaded manufacturing facilities and
allocation across a wide range of products and in light of continued high
levels of order intake, Infineon is increasing guidance for investments.
The company now anticipates an amount of more than Euro 400 million for the
2010 fiscal year. This compares to the previous 2010 guidance of more than
Euro 300 million and reported investments of Euro 154 million in the 2009
fiscal year. The company maintains its guidance for depreciation and
amortization at approximately Euro 400 million for the 2010 fiscal year
compared to Euro 513 million in the 2009 fiscal year.
Infineon segments' performance in the third 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 July 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 third 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)
- Nov 16, 2010* Earnings Release for the Fourth Quarter and Full 2010
Fiscal Year
ABOUT INFINEON
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, communications, and security. In the 2009 fiscal year
(ending September 30), the company reported sales of Euro 3.03 billion with
approximately 25,650 employees worldwide. With a global presence, Infineon
operates through its subsidiaries in the U.S. from Milpitas, CA, in the
Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is
listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA
on the over-the-counter market OTCQX International Premier (ticker symbol:
IFNNY).
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, 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, and developments relating to our ALTIS joint
venture, 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 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
28.07.2010 07:32 Ad hoc announcement, Financial News and Press 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 third quarter and provides outlook for the fourth quarter and the 2010 fiscal year
| Source: EQS Group AG