Infineon Technologies AG / Key word(s): Quarter Results
16.11.2010 07:31
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Quarter Results / Final Results
4Q 2010 RESULTS: SALES FROM CONTINUING OPERATIONS OF EURO 942 MILLION WITH
18.2 PERCENT SEGMENT RESULT MARGIN
QUARTERLY REVENUE UP 6 PERCENT SEQUENTIALLY
SEGMENT RESULT OF EURO 171 MILLION, A 24 PERCENT INCREASE FROM PRIOR
QUARTER
DIVIDEND PER SHARE OF 10 EURO CENTS FOR 2010 FISCAL YEAR
FY 2011 OUTLOOK: REVENUE FORECAST TO GROW TOWARDS 10 PERCENT WITH MID TO
HIGH TEENS COMBINED SEGMENT RESULT MARGIN
FOURTH QUARTER 2010 RESULTS (July 1 to September 30, 2010)
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in Euro million Q4 FY10 Q3 FY10 +/-
Revenue from continuing operations 942 885 6
Segment Result from continuing operations 171 138 24
Segment Result Margin from continuing operations 18.2% 15.6%
[in %]
Income (loss) from continuing operations 193 103 87
Income (loss) from discontinued operations, net 197 23 +++
of income taxes
Net income 390 126 +++
in Euro
Basic earnings (loss) per share from continuing 0.18 0.10 80
operations
Basic earnings (loss) per share from 0.18 0.02 +++
discontinued operations
Basic earnings per share 0.36 0.12 +++
Diluted earnings (loss) per share from 0.16 0.09 78
continuing operations
Diluted earnings (loss) per share from 0.17 0.02 +++
discontinued operations
Diluted earnings per share 0.33 0.11 +++
Revenue including Wireless Solutions 1,400 1,209 16
Total Segment Result including Wireless
Solutions 274 163 68
Segment Result Margin including Wireless
Solutions [in %] 19.6% 13.5% 16
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Neubiberg, Germany - November 16, 2010 - Infineon Technologies AG (FSE: IFX
/ OTCQX: IFNNY) today reported results for the fourth quarter of the 2010
fiscal year, ended September 30, 2010.
'The last quarters' excellent performance has continued in the fourth
quarter across all the segments. The company's growth during this upcycle
remains significantly ahead of the market and our profitability has risen
yet again, as evidenced by more than 18 percent Segment Result margin and
free cash flow of Euro 236 million from continuing operations', says Peter
Bauer, CEO of Infineon Technologies AG.
REVIEW OF THE GROUP FINANCIALS OF THE FOURTH QUARTER OF THE 2010 FISCAL
YEAR
Due to the planned divestiture of Infineon's Wireless mobile phone business
to Intel Corporation, announced on August 30, 2010, Infineon now reports
this part of the business as a discontinued operation. On the other hand,
our segment reporting for the 2010 fiscal year continues to include our
Wireless Solutions segment. We have focused our comments herein on our
continuing business and references to our segments exclude Wireless
Solutions, unless otherwise stated.
Infineon's revenues in the fourth quarter were Euro 942 million, up 6
percent compared to the third quarter and up 55 percent year-over-year. The
sequential increase in revenues reflects growth in all of the company's
segments. Including the Wireless Solutions business, revenue totaled Euro
1,400 million.
Fourth quarter Total Segment Result was Euro 171 million, a significant
increase of 24 percent compared to Euro 138 million in the prior quarter.
Total Segment Result margin in the fourth quarter reached 18.2 percent, up
from 15.6 percent in the third quarter. Including the Wireless Solutions
business, Segment Result totaled Euro 274 million and Segment Result margin
was 19.6 percent. This was well in-line with September guidance of 18 to 20
percent Segment Result margin.
For the fourth quarter, income from continuing operations was Euro 193
million, up from Euro 103 million in the third quarter. The sequential
increase of 87 percent contained a non-recurring benefit of Euro 69 million
resulting from deferred tax assets recorded during the fourth quarter.
Infineon reported income from discontinued operations, net of income taxes,
of Euro 197 million for the fourth quarter, up from Euro 23 million in the
prior quarter. Net income from discontinued operations contained mainly the
after-tax profit of the Wireless mobile phone business and also the
recognition of a deferred tax asset in anticipation of the use of tax loss
carry-forwards against the expected taxable gain from closing the
divestiture of the Wireless mobile phone business. Resulting net income for
the group was Euro 390 million in the fourth quarter, a significant
increase from net income of Euro 126 million in the preceeding quarter. For
the fourth quarter, basic earnings per share were Euro 0.36 and diluted
earnings per share were Euro 0.33, compared to Euro 0.12 and Euro 0.11,
respectively, for basic and diluted EPS in the third quarter.
Investments for continuing operations, 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 163
million in the fourth quarter, up from Euro 80 million in the prior
quarter, reflecting further investments in the company's production
facilities. Depreciation and amortization within continuing operations was
at Euro 85 million, compared to Euro 80 million in the prior quarter. Free
cash flow from continuing operations for the fourth quarter was very strong
at Euro 236 million, up significantly from Euro 173 million for the third
quarter, despite the strong increase in capital spending.
The strong free cash flow generation drove increases in the company's gross
cash position to Euro 1,727 million and in its net cash position to Euro
1,331 million as of September 30, 2010. Both increased from Euro 1,514
million and Euro 1,108 million, for gross and net cash, respectively, as of
June 30, 2010.
In recognition of the company's favorable operating performance in the 2010
fiscal year and its comfortable cash position as of September 30, 2010, the
Infineon management and supervisory board will submit for approval to the
upcoming annual general meeting on February 17, 2011 a dividend per share
of Euro 0.10 for the 2010 fiscal year.
DEFERRED TAX ASSETS AND DPR
The Deutsche Prüfstelle für Rechnungslegung DPR e.V. ('DPR'), a German
government-appointed private institution, subjected the consolidated
financial statements of Infineon Technologies AG for the 2008 fiscal year
to a random sample audit. DPR raises objections to the recognition of
deferred tax assets for loss carry-forwards of 237 million. In view of the
future corporate structure, in particular without Wireless mobile phone
business, and in view of the expected future positive profitability, the
reason for recognition of these deferred tax assets is today anyway
out-dated. For that and for reasons of process efficiency, Infineon
decided to comply with DPR's demand. As a result, the deferred tax assets
for loss carry-forwards were reduced by Euro 237 million as of October 1,
2008. The shareholder's equity was reduced by the same amount as of October
1, 2008. These retrospective adjustments have no effect on the existing tax
loss carry-forwards and do not lead to any cash outflows.
INCLUSION IN THE DOW JONES SUSTAINABILITY INDEX
Throughout the entire semiconductor development process, Infineon is
focused on efficient and careful resource management. Moreover, our
innovations should significantly contribute to sustainability, not only at
our customers, but already during our own manufacturing process. And it is
not only the economic dimension that we care about, we care also about the
use of raw materials and energy as well as its consequences for our
employees. As a result of these efforts, we are pleased to report that
Infineon was included in the Dow Jones Sustainability Index Europe in
September 2010. Already after first application for assessment, Infineon
managed to be among the ten most sustainable semiconductor companies in the
world.
OUTLOOK FOR THE FIRST QUARTER AND FOR THE WHOLE 2011 FISCAL YEAR
Infineon expects revenues for the first quarter of the 2011 fiscal year to
be flat to down slightly compared to the fourth quarter of the 2010 fiscal
year, depending on the foreign exchange rate environment and in particular
on the development of the exchange rate of the US Dollar against the Euro.
First quarter Total Segment Result margin should remain at about the same
level as seen in the previous quarter.
Within the expected group turnover development, Automotive (ATV) revenue is
expected to increase, Industrial & Multimarket (IMM) turnover should remain
about flat and Chip Card & Security (CCS) segment sales should exhibit
negative seasonality.
At an assumed Euro/U.S. Dollar exchange rate of 1.40, the company expects
full-year revenues to grow at a rate of close to 10 percent. Within this
sales outlook, the company anticipates growth in its ATV turnover of about
ten percent for the 2011 fiscal year, with IMM sales expected to grow at a
rate clearly exceeding the group average and CCS revenue likely to grow
very slowly.
Total Segment Result margin for the 2011 fiscal year is expected to be a
mid to high teens percentage of sales.
Infineon anticipates that investments will total around Euro 550 million in
the 2011 fiscal year. After a period of sustained capacity shortages
between late-2009 and the end of the 2010 fiscal year, Infineon will seek
to grow manufacturing capacity in particular at its Kulim front-end
facility (Malaysia) as well as in various back-end facilities. In September
2010, a pilot line was set up in Villach, Austria, one of Infineon's bases
for developing and manufacturing power semiconductors. Over the course of
one year, Infineon will be looking at the extent to which 300 mm wafers can
be used to manufacture power semiconductor devices on a thin wafer basis.
All investments were Euro 325 million in 2010 fiscal year.
Depreciation and Amortization is expected to be about Euro 400 million for
the 2011 fiscal year, compared to Euro 336 million in the 2010 fiscal year.
'We have consistently geared the corporate portfolio to businesses that are
less volatile and more profitable. In providing products and solutions
addressing the megatrends in society - energy efficiency, mobility and
security - we are focusing on markets enabling long-term, above-average
growth. In view of the resulting prospects, the very positive operating
performance in the past fiscal year and the comfortable cash position, the
Supervisory Board and Management Board will propose to the Annual General
Meeting that a dividend of 10 Euro Cents per share be paid for shareholders
to participate appropriately in the successful business development', says
Peter Bauer.
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 November 16, 2010, 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 fourth quarter and the 2010 fiscal
year. In addition, the Infineon Management Board will host a press
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
http://corporate.infineon.com.
IFX FINANCIAL CALENDAR (*preliminary date)
- Feb 1, 2011* Earnings Release for the First Quarter of the 2011 Fiscal
Year
- Feb 17, 2011* 2011 Annual General Meeting of Shareholders
- May 3, 2011* Earnings Release for the Second Quarter of the 2011
Fiscal Year
- Jul 28, 2011* Earnings Release for the Third Quarter of the 2011
Fiscal Year
- Nov 17, 2011* Earnings Release for the Fourth Quarter and Full 2011
Fiscal Year
ABOUT INFINEON
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2010 fiscal year (ending
September 30), the company reported sales of Euro 3.295 billion with
approximately 26,650 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, 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,
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, trends in demand and prices for
semiconductors generally and for our products in particular, as well as for
the end-products 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.
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
16.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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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, Stuttgart, Hannover, Hamburg, München, Düsseldorf;
Terminbörse EUREX
End of Announcement DGAP News-Service
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DGAP-News: Infineon reports results for the fourth quarter of the 2010 fiscal year and provides outlook for the first quarter and the 2011 fiscal year
| Source: EQS Group AG