DGAP-News: Infineon Technologies AG: Second-quarter revenue and Segment Result significantly above previous quarter

| Source: EQS Group AG
DGAP-News: Infineon Technologies AG / Key word(s): Quarter
Results/Half Year Results
Infineon Technologies AG: Second-quarter revenue and Segment Result
significantly above previous quarter

02.05.2013 / 07:30


  - Q2 FY 2013: Revenue EUR918 million; Segment Result EUR68 million

  - Outlook for Q3 FY 2013: Revenue of about EUR1 billion and Segment
    Result Margin of approximately 10 percent

  - Outlook FY 2013: Revenues and Segment Result Margin expected at the
    upper end of the previously guided range

Neubiberg, Germany - May 2, 2013. Infineon Technologies AG today reported
results for the second quarter of the 2013 fiscal year, ended March 31,


in Euro million                                 Q2 FY13   Q1 FY13  +/- in %

Revenue                                             918       851         8
Segment Result                                       68        44        55
Segment Result Margin [in %]                       7.4%      5.2%
Income (loss) from continuing operations             36        26        38
Income (loss) from discontinued operations,         (3)       (7)        57
net of income taxes
Net income                                           33        19        74

in Euro
Basic earnings (loss) per share from               0.03      0.02        50
continuing operations1
Basic earnings (loss) per share from                ---       ---       ---
discontinued operations1
Basic earnings per share1                          0.03      0.02        50

Diluted earnings (loss) per share from             0.03      0.02        50
continuing operations1
Diluted earnings (loss) per share from              ---       ---       ---
discontinued operations1
Diluted earnings per share1                        0.03      0.02        50


1 The calculation for earnings per share is based on unrounded figures.

'Revenues and margin have recovered nicely over the past quarter. The
trough is behind us. Our order books are filling up, albeit still with a
relatively high proportion of short term business. We therefore expect a
further rise in revenue and margin in the current quarter', stated Dr.
Reinhard Ploss, CEO of Infineon Technologies AG. 'As forecast last
November, our markets are growing significantly in the second half of the
fiscal year. Based on the outlook for the third quarter and on first-half
results, we expect to reach the upper end of our guided range for the full


The Infineon Group reported revenue of EUR918 million for the second
quarter of the 2013 fiscal year, 8 percent up on the EUR851 million
recorded in the previous quarter. The increase was partly the consequence
of a return to more normalized revenue levels in the Automotive segment
(ATV). Second-quarter revenues of the Industrial Power Control (IPC) and
Power Management & Multimarket (PMM) were also slightly higher than in the
previous quarter. Revenue reported by the Chip Card & Security segment
(CCS) was flat quarter-on-quarter.

Segment Result improved by EUR24 million from EUR44 million in the first
quarter of the 2013 fiscal year to EUR68 million in the quarter under
report. The Segment Result Margin rose from 5.2 percent to 7.4 percent. The
improvement in Segment Result primarily reflects higher revenue and
continued cost control. The margin expansion was dampened by price
reductions in volume purchase agreements that came into effect as usual at
the beginning of the calendar year.

Income from continuing operations in the second quarter of the 2013 fiscal
year amounted to EUR36 million, compared with EUR26 million recorded in the
previous quarter. The second-quarter loss from discontinued operations was
EUR3 million, following a EUR7 million loss reported in the first quarter.
Net income improved quarter-on-quarter from EUR19 million to EUR33 million.
Earnings per share increased to EUR0.03 as compared to EUR0.02 one quarter
earlier (basic and diluted).

Investments - which the Company defines as the sum of purchases of
property, plant and equipment, purchases of intangible assets and
capitalized research and development assets - went down from EUR88 million
in the first quarter to EUR65 million in the second. Depreciation and
amortization was unchanged at EUR116 million.

Free cash flow from continuing operations increased from negative EUR128
million in the first quarter of the 2013 fiscal year to positive EUR73
million in the second, an improvement of EUR201 million, with most of the
improvement attributable to the sharp increase in the cash inflow from
operating activities (up by EUR178 million) and lower investments (down by
EUR23 million).

Shareholders approved the dividend proposed by management to the Annual
General Meeting held on February 28, 2013. Accordingly, a dividend of
EUR0.12 per share, unchanged from the previous year, was paid on March 1,
2013. The total amount of the distribution was EUR129 million.

The positive free cash flow on the one hand and the payment of the dividend
on the other resulted in an overall slight decrease in cash and cash
equivalents. The gross cash position at March 31, 2013 amounted to EUR2.016
billion compared to EUR2.081 billion at December 31, 2012. The net cash
position at the end of the quarter was EUR1.705 billion compared to
EUR1.768 billion three months earlier.

During the period from October 2010 to March 2013, Infineon had a total of
EUR687 million cash out for dividends, share and convertible bond
repurchases. Overall, dividends paid for the fiscal years 2010 to 2012
totaled EUR368 million. Over the course of the capital return program which
expired on March 31, 2013, Infineon repurchased EUR128 million worth of
convertible bonds due May 2014 with a nominal amount of EUR47 million and
13 million own shares for EUR84 million. Prior to the capital return
program, during the period from October 2010 to March 2011, Infineon also
had repurchased convertible bonds with a nominal amount of EUR36 million
for EUR107 million. Overall, the diluted number of shares was reduced by 49
million or 4.5 percent as a result of repurchases of convertible bonds and
shares since October 2010.

Based on an assumed exchange rate of 1.30 US dollars to the euro (unchanged
from the previous quarter), Infineon forecasts third-quarter revenue of
about EUR1 billion, with all segments expected to contribute to revenue
growth. The Group's Segment Result Margin for the third quarter is forecast
at approximately 10 percent of revenues.

Based on first-half results and the outlook for the third quarter, the
Management Board expects the fiscal year's revenue decline compared to the
previous year at the upper end of the mid-to-high single digit percentage
range previously announced. Thus the Segment Result Margin for the 2013
fiscal year is expected to be at the upper end of the mid-to-high single
digit percentage range guided thus far.

In terms of revenue growth compared to the previous fiscal year, the ATV,
PMM and CCS segments are expected to fare better than the Group average in
the fiscal year 2013, whereas IPC is expected to suffer from a revenue
decline significantly higher than the Group average. Revenue of the OOS
segment will again fall sharply, as goods and services sold relating to the
previously sold Wireline Communications and Wireless mobile phone
businesses continue to decrease as planned. This forecast is based on an
assumed exchange rate of 1.30 US dollars to the euro.

Investments in the 2013 fiscal year will be in the region of EUR400 million
and compare with a depreciation and amortization expense of approximately
EUR470 million.

Infineon segments' performance in the second quarter of the 2013 fiscal
year can be found in the quarterly information at http://www.infineon.com

All figures in this quarterly information are preliminary and unaudited.

Infineon will host a telephone conference call for analysts and investors
(in English only) on May 2, 2013 at 10:00 am (CEST), 4:00 am (EDT). During
the call, the Infineon Management Board will present the Company's results
from the second quarter of the 2013 fiscal year. In addition, the
Management Board will host a telephone conference with the media at 11:30
am (CEST), 5:30 am (EDT). It can be followed over the Internet in both
English and German. Both conferences will also be available live and for
download on Infineon's website at www.infineon.com/investor .

The Q2 Investor Presentation is available (in English) at:


  - Jun 3-4, 2013 Bank of America Merrill Lynch Global Tech Conference, San

  - Jun 11, 2013 Conference Call by Stefan Hofschen, Division President,
    Chip Card & Security

  - Jun 18, 2013 JPMorgan CEO Conference, London

  - Jul 30, 2013* Earnings Release for the Third Quarter of the 2013 Fiscal

  - Aug 28, 2013 Commerzbank Sector Conference Week, Frankfurt

  - Sep 3, 2013 Deutsche Bank European TMT Conference, London

  - Sep 18, 2013 Conference Call by Jochen Hanebeck, Division President,

  - Sep 24, 2013 Berenberg Bank and Goldman Sachs German Corporate
    Conference, Munich

  - Sep 25, 2013 Baader Investment Conference, Munich

  - Nov 12, 2013* Earnings Release for the Fourth Quarter and Full 2013
    Fiscal Year

  - Nov 18-19, 2013 Company roadshow - including presentation by Andreas
    Urschitz, Division President, Power Management & Multimarket (PMM),

  - Nov 20-22, 2013 Morgan Stanley TMT Conference, Barcelona

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, mobility, and security. In the 2012 fiscal year (ending
September 30), the Company reported sales of EUR3.9 billion with close to
26,700 employees worldwide. 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).

This press release contains forward-looking statements about the business,
financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon
currently available information and present estimates. They are subject to
a multitude of uncertainties and risks. Actual business development may
therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not
undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this press release and other
reports may not add up precisely to the totals provided and percentages may
not precisely reflect the absolute figures.

End of Corporate News


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Language:    English                                                
Company:     Infineon Technologies AG                               
             Am Campeon 1-12                                        
             85579 Neubiberg                                        
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, Hamburg, Hannover,  
             München, Stuttgart; Terminbörse EUREX                  
End of News    DGAP News-Service  
209209 02.05.2013