Infineon Technologies AG / Quarter Results 28.07.2010 07:32 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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) |[![CDATA[|[pre|]]]|] 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 |[![CDATA[|[/pre|]]]|] 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|]]]|] --------------------------------------------------------------------------- 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 End of News DGAP News-Service ---------------------------------------------------------------------------
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