DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast Infineon Technologies AG: STRONG GROWTH IN REVENUE AND EARNINGS 30.07.2015 / 07:30 --------------------------------------------------------------------- - Q3 FY 2015: REVENUE OF EUR 1,586 MILLION; SEGMENT RESULT EUR 245 MILLION; SEGMENT RESULT MARGIN 15.4 PERCENT - OUTLOOK Q4 FY 2015: QUARTER-ON-QUARTER REVENUE GROWTH OF 1 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 16 PERCENT AT MID-POINT OF GROWTH RANGE - OUTLOOK FOR FY 2015: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.10 TO THE EURO, YEAR-ON-YEAR REVENUE GROWTH OF 34 PERCENT AND A SEGMENT RESULT MARGIN OF 15 PERCENT EXPECTED Neubiberg, Germany, July 30, 2015 - Infineon Technologies AG today reported its results for the third quarter of the 2015 fiscal year, ended June 30, 2015. <pre> in Euro million Q3 FY15 Q2 GJ15 +/- in % Revenue 1,586 1,483 7 Segment Result 245 198 24 Segment Result Margin [in %] 15.4 13.4 Income (loss) from continuing operations 105 65 62 Income (loss) from discontinued operations, 4 - --- net of income taxes Net income 109 65 68 in Euro Basic earnings (loss) per share from 0.10 0.06 67 continuing operations1 Basic earnings (loss) per share from - - --- discontinued operations1 Basic earnings per share1 0.10 0.06 67 Diluted earnings (loss) per share from 0.10 0.06 67 continuing operations1 Diluted earnings (loss) per share from - - --- discontinued operations1 Diluted earnings per share1 0.10 0.06 67 Adjusted earnings per share diluted2 0.18 0.13 38 </pre> The opening balance sheet values, and with them the comparative information for the previous period have been adjusted as a result of the continuing analysis and valuation of the assets and liabilities acquired as part of the preliminary purchase price allocation for International Rectifier. 1 The calculation for earnings per share is based on unrounded figures. 2 The reconciliation of net income to adjusted net income and adjusted earnings per share can be found in the quarterly information at http://www.infineon.com. "Revenue, earnings and margin rose significantly in the third quarter, despite an increasingly difficult business environment. For the full fiscal year, we therefore continue to forecast revenue and a Segment Result Margin within the ranges previously predicted", stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "The integration of International Rectifier is progressing according to plan. Leading technologies and an excellent system understanding differentiate us from the competition, to the benefit of our customers. Therefore we are ideally equipped to take on the challenges of the future." REVIEW OF GROUP FINANCIALS FOR THE THIRD QUARTER OF THE 2015 FISCAL YEAR Third-quarter revenue for the Infineon Group grew by 7 percent to EUR 1,586 million, compared to the EUR 1,483 million reported in the second quarter, corresponding to a rise of EUR 103 million. A combination of higher revenue and positive cost effects drove the Segment Result up by 24 percent from EUR 198 million in the second quarter to EUR 245 million in the third quarter of the current fiscal year. The Segment Result Margin improved to 15.4 percent, compared with 13.4 percent in the previous quarter. The negative non-segment result decreased quarter-on-quarter from negative EUR 119 million to negative EUR 126 million. In addition to the acquisition-related depreciation and amortization charges and other expenses already reported in the second quarter, expenses were also recognized in the third quarter in connection with the closure of the Singapore Techview manufacturing facility announced in May. Operating income improved from EUR 79 million in the second quarter of the 2015 fiscal year to EUR 119 million in the third quarter. Income from continuing operations rose from EUR 65 million to EUR 105 million quarter-on-quarter. Income from discontinued operations amounted to EUR 4 million, compared with EUR 0 million (rounded) in the preceding quarter. Net income for the third quarter came in at EUR 109 million, well ahead of the previous quarter's EUR 65 million. Earnings per share (basic and diluted) increased from EUR 0.06 in the second quarter to EUR 0.10 in the third. Adjusted earnings per share (diluted) improved to EUR 0.18, compared to EUR 0.13 in the second quarter. For the purposes of calculating adjusted earnings per share (diluted), a number of items were eliminated, most notably acquisition-related depreciation and amortization and other expenses as well as expenses related to the closing of Singapore Techview (net of tax). Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets - increased to EUR 215 million in the third quarter of the current fiscal year, compared with EUR 150 million in the preceding quarter. Depreciation and amortization edged up quarter-on-quarter from EUR 203 million to EUR 205 million. Free Cash Flow from continuing operations in the third quarter totaled EUR 220 million. Payment of the purchase price for International Rectifier had given rise to a negative Free Cash Flow of EUR 1,880 million in the second quarter. Net cash provided by operating activities from continuing operations rose from EUR 135 million to EUR 432 million. The gross cash position went up from EUR 1,656 million on March 31, 2015 to EUR 1,842 million at the end of the third quarter. The net cash position improved over the same period from a negative amount of EUR 176 million to stand at a positive amount of EUR 49 million at June 30, 2015. With these figures, Infineon is now back within the target range for its three capital management objectives , namely gross cash of between 30 and 40 percent of revenue, a positive net cash position, and a moderate level of debt. OUTLOOK FOR THE FOURTH QUARTER OF THE 2015 FISCAL YEAR Based on an assumed exchange rate of US$ 1.10 to the euro, Infineon expects quarter-on-quarter revenue growth of 1 percent (plus or minus 2 percentage points) in the fourth quarter of the 2015 fiscal year. At the mid-point of the growth range, the Segment Result Margin is expected to come in at about 16 percent. OUTLOOK FOR THE 2015 FISCAL YEAR For the 2015 fiscal year, based on an assumed exchange rate of US$ 1.10 to the euro, Infineon forecasts a year-on-year rise in revenue of 34â¯percent and the Segment Result Margin is expected to be about 15 percent. All four operating segments will contribute to revenue growth. This forecast also includes International Rectifier's expected contribution to revenue in the period from January 13, 2015 to September 30, 2015. Investments during the 2015 fiscal year are expected to be in the region of EUR 800 million. This figure includes investments in plant and equipment at existing factories and in intangible assets including capitalized development costs. Specifically included in these investments are EUR 60 to EUR 70 million for readying the second shell in Kulim, Malaysia, for volume production and EUR 21 million for the purchase of Qimonda patents in conjunction with the settlement reached with the insolvency administrator of Qimonda AG. Depreciation and amortization will increase to around EUR 750 million, mostly as a result of acquisition-related charges. Infineon segments' performance in the third quarter of the 2015 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 CONFERENCE Infineon will host a telephone conference call for analysts and investors (in English only) on July 30, 2015 at 9:30 am (CEST), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the third quarter of the 2015 fiscal year. In addition, the Management Board will host a live telephone conference with the media at 11:00 am (CEST), 5:00 am (EST). 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 Q3 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/investor/reporting/index.html INFINEON FINANCIAL CALENDAR (*preliminary) - Sep 3, 2015 Deutsche Bank European TMT Conference, London - Sep 22 - 23, 2015 Baader Investment Conference, Munich - Sep 23, 2015 Berenberg Bank and Goldman Sachs German Corporate Conference, Munich - Sep 28, 2015 Presentation by Jochen Hanebeck, Division President Automotive, London - Nov 11 - 13, 2015 Morgan Stanley TMT Conference, Barcelona - Nov 26, 2015* Earnings Release for the Fourth Quarter and Full 2015 Fiscal Year - Dec 1 - 2, 2015 Credit Suisse TMT Conference, Scottsdale/Arizona - Feb 2, 2016 Earnings Release for the First Quarter of the 2016 Fiscal Year - Feb 18, 2016 Annual General Meeting 2016, Munich ABOUT INFINEON Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2014 fiscal year (ending September 30), the company reported sales of Euro 4.3 billion with about 29,800 employees worldwide. In January 2015, Infineon acquired US-based International Rectifier Corporation with revenues of USD 1.1 billion (fiscal year 2014 ending June 29) and approximately 4,200 employees. 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). Further information is available at www.infineon.com This press release is available online at www.infineon.com/press Follow us: twitter.com/Infineon - facebook.com/Infineon - plus.google.com/+Infineon D I S C L A I M E R 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. --------------------------------------------------------------------- 30.07.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Infineon Technologies AG Am Campeon 1-12 85579 Neubiberg Germany 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 382081 30.07.2015
DGAP-News: Infineon Technologies AG: STRONG GROWTH IN REVENUE AND EARNINGS
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