DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Final
Results
Infineon Technologies AG: INTERNATIONAL RECTIFIER SUCCESSFULLY INTEGRATED
WITH STRONG CONTRIBUTION TO EARNINGS
26.11.2015 / 07:30
The issuer is solely responsible for the content of this announcement.
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- Q4 FY 2015: REVENUE OF EUR1,598 MILLION; SEGMENT RESULT EUR286 MILLION;
SEGMENT RESULT MARGIN 17.9 PERCENT
- INTERNATIONAL RECTIFIER'S FOURTH-QUARTER MARGIN ALREADY MEETS 15
PERCENT TARGET FOR SEGMENT RESULT MARGIN OVER ECONOMIC CYCLE
- OUTLOOK FOR Q1 FY 2016: QUARTER-ON-QUARTER REVENUE DECREASE OF 6
PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) DUE TO SEASONAL FACTORS,
WITH SEGMENT RESULT MARGIN OF 14 PERCENT AT MID-POINT OF REVENUE RANGE
- OUTLOOK FOR FY 2016: BASED ON AN ASSUMED AVERAGE EXCHANGE RATE OF
US$1.10 TO THE EURO, YEAR-ON-YEAR REVENUE GROWTH OF 13 PERCENT (PLUS OR
MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 16 PERCENT
EXPECTED
Neubiberg, Germany, November 26, 2015 - Infineon Technologies AG today
reported its results for the fourth quarter and the 2015 fiscal year, ended
September 30, 2015.
<pre>
in Euro million Q4 FY15 Q3 FY15 +/- in %
Revenue 1,598 1,586 1
Segment Result 286 245 17
Segment Result Margin [in %] 17.9 15.4 +++
Income (loss) from continuing operations 322 105 (25)
Income (loss) from discontinued operations, 3 4
net of income taxes
Net income 325 109 +++
in Euro
Basic earnings (loss) per share from 0.29 0.10 +++
continuing operations1
Basic earnings (loss) per share from - -
discontinued operations1
Basic earnings per share1 0.29 0.10 +++
Diluted earnings (loss) per share from 0.29 0.10 +++
continuing operations1
Diluted earnings (loss) per share from - -
discontinued operations1
Diluted earnings per share1 0.29 0.10 +++
Adjusted earnings per share diluted2 0.16 0.18 (11)
</pre>
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
www.infineon.com.
"The integration of International Rectifier has been a success. The
fourth-quarter margin generated by the acquired business was already 15
percent and hence in line with Infineon's target for Segment Result Margin
over the economic cycle. With that we have achieved our aim more than one
year ahead of schedule," stated Dr. Reinhard Ploss, CEO of Infineon
Technologies AG. "We will achieve further growth in revenue, earnings and
margin in the course of the current 2016 fiscal year."
REVIEW OF GROUP FINANCIALS FOR THE FOURTH QUARTER OF THE 2015 FISCAL YEAR
The Infineon Group's revenue edged up by EUR12 million or 1 percent to
EUR1,598 million in the fourth quarter of the 2015 fiscal year, compared
with EUR1,586 million in the previous quarter. The Industrial Power Control
(IPC), Power Management & Multimarket (PMM), and Chip Card & Security (CCS)
segments all contributed to revenue growth, whereas the Automotive (ATV)
segment recorded a 1 percent decrease.
The gross margin, which included depreciation and amortization related to
the purchase price allocation of EUR17 million rose to 39.0 percent
quarter-on-quarter. Gross margin in the preceding quarter was 34.8 percent.
Segment Result improved by 17 percent quarter-on-quarter from EUR245
million to EUR286 million in the fourth quarter. The fourth-quarter Segment
Result Margin came in at 17.9 percent, compared to 15.4 percent in the
preceding three-month period. The margin contributed by the businesses
acquired in conjunction with the purchase of International Rectifier,
including realized synergy benefits, has improved further since the
transaction closed in January, reaching a level of 15 percent by the final
quarter of the 2015 fiscal year. The fourth-quarter Segment Result Margin
also benefited from a favorable product mix and positive currency factors
on the cost side.
The non-segment result improved quarter-on-quarter from minus EUR126
million to minus EUR83 million in the fourth quarter of the 2015 fiscal
year. The fourth-quarter figure includes EUR62 million recognized for
depreciation and amortization related to the purchase price allocation and
other acquisition related expenses. The total amount of EUR83 million
comprises cost of goods sold (EUR28 million), research and development
expenses (EUR5 million), selling, general and administrative expenses
(EUR39 million) and other operating expenses (EUR11 million).
Operating income rose from EUR119 million in the third quarter of the 2015
fiscal year to EUR203 million in the fourth quarter. Income from continuing
operations improved from EUR105 million to EUR322 million, while income
from discontinued operations decreased from EUR4 million to EUR3 million.
Net income increased from EUR109 million in the third quarter to EUR325
million in the three-month period under report. Besides the significantly
improved operating income figure, a net income tax benefit of EUR131
million recognized in the fourth quarter had a positive impact on net
income. The tax benefit comprises income of EUR209 million resulting from
the reversal of a valuation allowance on deferred tax assets, recognized in
light of higher earnings expectations. Current tax for the 2015 fiscal year
and tax effects related to prior fiscal years worked in the opposite
direction.
Earnings per share (basic and diluted) increased from EUR0.10 in the third
quarter 2015 to EUR0.29 in the fourth.
Adjusted earnings per share (diluted) decreased quarter-on-quarter from
EUR0.18 to EUR0.16 in the fourth quarter of the 2015 fiscal year. For the
purposes of calculating adjusted earnings per share (diluted), a number of
items were eliminated, most notably acquisition-related
depreciation/amortization and other expenses (net of tax) as well as
reversals of valuation allowances on deferred tax assets.
Investments - which Infineon defines as the sum of purchases of property,
plant and equipment, purchases of intangible assets and capitalized
development assets - increased to EUR279 million in the fourth quarter,
compared to EUR215 million in the preceding three-month period.
Depreciation and amortization increased from EUR205 million to EUR211
million quarter-on-quarter.
Free cash flow from continuing operations amounted to EUR177 million in the
fourth quarter, compared to the third-quarter figure of EUR220 million. At
EUR429 million, net cash provided by operating activities from continuing
operations was more or less unchanged from the previous quarter's figure of
EUR432 million.
The gross cash position went up from EUR1,842 million at the end of the
third quarter to EUR2,013 million at September 30, 2015. The net cash
position improved over the same period from EUR49 million to EUR220
million.
DIVIDEND FOR THE 2015 FISCAL YEAR: EUR0.20 PER SHARE
Infineon's Management Board and Supervisory Board will propose at the
Annual General Meeting, which will be held in Munich on February 18, 2016,
that the dividend for the 2015 fiscal year be raised by EUR0.02 to EUR0.20.
This proposed dividend increase follows the previous increase of EUR0.06
from EUR0.12 to EUR0.18.
Infineon's stated objective is to pursue a dividend policy that enables
shareholders to participate appropriately in growing earnings or, in times
of flat or declining earnings and/or of negative free cash flows, to keep
the dividend at least at a constant level.
OUTLOOK FOR THE FIRST QUARTER OF 2016 FISCAL YEAR
In the first quarter of the 2016 fiscal year, Infineon expects a
quarter-on-quarter revenue decrease of 6 percent (plus or minus 2
percentage points) due to seasonal factors. This forecast is based on an
assumed average exchange rate of US$1.10 to the euro. At the mid-point of
the revenue range, the Segment Result Margin is expected to come in at
approximately 14 percent.
OUTLOOK FOR THE 2016 FISCAL YEAR
Based on an assumed average exchange rate of US$1.10 to the euro, Infineon
expects year-on-year revenue growth of around 13 percent (plus or minus 2
percentage points) and a Segment Result Margin of 16 percent at the
mid-point of the range for the forecast revenue growth.
The Power Management & Multimarket segment is expected to grow faster than
the Group average. Revenue growth in the Industrial Power Control segment
is forecast to be roughly in line with the Group average. The Automotive
and Chip Card & Security segments are both expected to report growth below
the Group average. The forecast includes the financial figures of
International Rectifier for the full fiscal year. The results of operations
for the 2015 fiscal year included figures for International Rectifier with
effect from the closing of the acquisition on January 13, 2015.
Investments in property, plant and equipment, intangible assets and
capitalized development costs in the region of EUR850 million are planned
for the 2016 fiscal year. The ratio for investments as a percentage of
revenue (at the mid-point of the forecast range) is forecast at 13 percent.
Depreciation and amortization are also expected to be in the region of
EUR850 million.
Infineon segments' performance in the fourth quarter and the 2015 fiscal
year can be found in the quarterly information at www.infineon.com.
All figures in this quarterly information are preliminary and unaudited.
ANALYST TELEPHONE CONFERENCE AND PRESS CONFERENCE
Infineon will host a telephone conference call for analysts and investors
(in English only) on November 26, 2015 at 9:30 am (CET), 3:30 am (EST).
During the call, the Infineon Management Board will present the Company's
results for the fourth quarter and the 2015 fiscal year. In addition, the
Management Board will host a live press conference with the media at 11:00
am (CET), 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 Q4 Investor Presentation is available (in English only) at:
www.infineon.com/cms/en/about-infineon/investor/reporting/
The 2015 annual report will be published on Thursday, November 26, 2015 at
about 10.00 am (CET) on Infineon's website as well the website of Deutsche
Börse. www.infineon.com/annualreport
INFINEON FINANCIAL CALENDAR (*preliminary)
- Dec 1 - 2, 2015 Credit Suisse TMT Conference, Phoenix/Arizona
- Feb 2, 2016* Earnings Release for the First Quarter of the 2016 Fiscal
Year
- Feb 18, 2016 Annual General Meeting 2016, Munich
- May 3, 2016* Earnings Release for the Second Quarter of the 2016 Fiscal
Year
- Aug 2, 2016* Earnings Release for the Third Quarter of the 2016 Fiscal
Year
- Nov 30, 2016* Earnings Release for the Fourth Quarter and 2016 Fiscal
Year
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 2015 fiscal year (ending September 30), the
company reported sales of about Euro 5.8 billion with some 35,400 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).
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.
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26.11.2015 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,
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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
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416369 26.11.2015
DGAP-News: Infineon Technologies AG: INTERNATIONAL RECTIFIER SUCCESSFULLY INTEGRATED WITH STRONG CONTRIBUTION TO EARNINGS
| Source: EQS Group AG