DGAP-News: Infineon reports results for the second quarter and provides outlook for the third quarter and the 2011 fiscal year
ID: 33935
(firmenpresse) - DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results
Infineon reports results for the second quarter and provides outlook
for the third quarter and the 2011 fiscal year
03.05.2011 / 07:30
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2Q 2011 RESULTS: GROWTH AND MARGINS ABOVE ORIGINAL EXPECTATIONS WITH SALES
OF EURO 994 MILLION AND TOTAL SEGMENT RESULT MARGIN OF 20.3 PERCENT
SALES UP 8 PERCENT SEQUENTIALLY WITH STRENGTH IN ALL DIVISIONS
STRONG PROFITABILITY WITH TOTAL SEGMENT RESULT OF EURO 202 MILLION
3Q 2011 OUTLOOK: SALES AND TOTAL SEGMENT RESULT EXPECTED TO BE BROADLY FLAT
FY 2011 OUTLOOK RAISED: 20 PERCENT SALES GROWTH; TOTAL SEGMENT RESULT
MARGIN TO BE BROADLY IN LINE WITH THE 19.8 PERCENT RECORDED FOR THE FIRST
HALF OF THE FISCAL YEAR
SECOND QUARTER 2011 RESULTS (January 1 to March 31, 2011)
in Euro million Q2 FY11 Q1 FY11 +/-Neubiberg, Germany - May 3, 2011 - Infineon Technologies AG (FSE: IFX /
Revenue 994 922 8
Total Segment Result 202 177 14
Total Segment Result Margin [in %] 20.3% 19.2%
Income (loss) from continuing operations 173 149 16
Income from discontinued operations, net of
income taxes 399 83 +++
Net income 572 232 +++
in Euro
Basic earnings (loss) per share from continuing 0.16 0.14 14
operations
Basic earnings (loss) per share from discontinued 0.37 0.07 +++
operations
Basic earnings per share 0.53 0.21 +++
Diluted earnings (loss) per share from continuing 0.15 0.13 15
operations
Diluted earnings (loss) per share from 0.35 0.07 +++
discontinued operations
Diluted earnings per share 0.50 0.20 +++
OTCQX: IFNNY) today reported results for the second quarter of the 2011
fiscal year, ended March 31, 2011.
'In the first half of this fiscal year, we have outgrown our addressed
market and our competition, earned record margins and returned Euro 216
million in cash to the capital market. This quarter proved once again that
focusing on energy efficiency, mobility and security is the right strategy.
With our system expertise and highly innovative products we will further
enlarge our footprint in these fast growing markets', says Peter Bauer, CEO
of Infineon Technologies AG.
Fiscal second quarter 2011 review: strong sequential sales growth drives
record Total Segment Result margin of 20.3 percent
Infineon booked fiscal second quarter sales of Euro 994 million in the 2011
fiscal year, an increase of 8 percent from the previous quarter. Relative
to the original guidance calling for only a slight increase in revenues,
upside was driven by all operating segments.
SECOND QUARTER TOTAL SEGMENT RESULT WAS EURO 202 MILLION, UP 14 PERCENT
FROM THE PRECEDING QUARTER. TOTAL SEGMENT RESULT MARGIN AGAIN SET AN
ALL-TIME-HIGH AT 20.3 PERCENT IN THE FISCAL SECOND QUARTER, UP FROM 19.2
PERCENT IN THE FIRST QUARTER.
Infineon reported net income from continuing operations of Euro 173
million, up from Euro 149 million in the first quarter.Higher operating
income and improved net financial expenses more than offset adverse effects
from higher tax expenses. Basic earnings per share from continuing
operations were Euro 0.16, up from Euro 0.14 in the previous quarter.
Diluted earnings per share from continuing operations were Euro 0.15 versus
Euro 0.13 in the preceding quarter.
Income from discontinued operations, net of income taxes, was Euro 399
million for the second quarter, up significantly from Euro 83 million in
the first quarter of the fiscal year. After the closing of the sale of the
Wireless mobile phone business to Intel on January 31, 2011, net income
from discontinued operations in the second quarter of the 2011 fiscal year
contained an after tax gain of Euro 378 million relating to this
transaction. The pre-tax gain amounted to Euro 535 million.
Net income for the group was Euro 572 million in the second quarter, up
from Euro 232 million in the previous quarter. Second quarter basic
earnings per share were Euro 0.53 and diluted earnings per share were Euro
0.50, up from Euro 0.21 and Euro 0.20, respectively, for basic and diluted
EPS in the first quarter of the 2011 fiscal year.
Operating cash flow from continuing operations amounted to Euro 177 million
for the second quarter of the 2011 fiscal year, up from Euro 134 million in
the prior quarter. Investments from 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 164 million in the second quarter of the 2011 fiscal
year, compared to Euro 131 million in the prior quarter. Depreciation and
amortization was Euro 89 million, up slightly from Euro 83 million in the
preceding quarter. Free cash flow from continuing operations for the first
quarter was Euro 13 million versus Euro 4 million in the first quarter of
the 2011 fiscal year.
CASH INFLOW FROM SALE OF WIRELESS MOBILE PHONE BUSINESS TO INTEL DRIVES NET
CASH POSITION OF EURO 2,335 MILLION; FURTHER REPURCHASES OF THE 2014
CONVERTIBLE BOND AND DIVIDEND PAYMENT
As of March 31, 2011, the company's gross cash position stood at Euro 2,691
million with a net cash position of Euro 2,335 million. Both positions
increased significantly quarter over quarter versus values of Euro 1,669
million and Euro 1,293 million for gross and net cash, respectively, at the
end of the fiscal first quarter 2011. The increase was due primarily to the
receipt of the proceeds from the sale of the Wireless mobile phone business
to Intel effective with the closing of the transaction on January 31, 2011.
In addition, after repurchases of Euro 80 million of its 2014 convertible
bond in the first quarter of the 2011 fiscal year, Infineon spent another
Euro 27 million on repurchases of that bond during the second quarter of
the 2011 fiscal year. The aggregate amount spent on bond repurchases during
the first half of the 2011 fiscal year therefore comes to Euro 107 million.
The company repurchased bonds with a nominal value of Euro 8 million during
the quarter, effectively reducing the amount of shares underlying the
convertible bond by more than three million shares. This amount of shares
equates to a reduction in the number of fully diluted shares outstanding of
approximately another 0.3 percent relative to the fully diluted share count
as of December 31, 2010. Finally, the company effected the payment of an
annual dividend of 10 cents per share during the second quarter of the
fiscal year for an aggregate amount of Euro 109 million. Total cash returns
to the capital market through bond repurchases and dividend payments
therefore sum-up to Euro 216 million during the first half of the fiscal
year.
OUTLOOK FOR THE THIRD QUARTER OF THE 2011 FISCAL YEAR: SALES AND TOTAL
SEGMENT RESULT MARGIN EXPECTED TO REMAIN ABOUT FLAT
Infineon is monitoring closely the effects of the aftermath of the March
2011 earthquake in Japan on its supply chain as well as on its customers'
supply chains. Operational risks remain on the supply sidefor example with
raw materials or front end and back end services and on the demand side in
terms of the ability of Infineon's customers to procure all components
required in their products. Nonetheless, efforts are under way on all
levels of the supply chain to prevent any disruptions. To date, Infineon
has not experienced any shortage of materials nor has it experienced any
change in order or delivery acceptance patterns on the part of customers.
Taking into account the above as well as current backlogs and scheduled
delivery dates, Infineon expects revenues and Total Segment Result margin
for the third quarter of the 2011 fiscal year to be about flat relative to
the levels of the fiscal second quarter 2011.
Within this outlook, Automotive (ATV) revenues are expected to decline
slightly, whereas turnover in Chip Card&Security (CCS) and Industrial&Multimarket (IMM) should exhibit some growth.
OUTLOOK FOR THE FISCAL YEAR 2011: RAISING ANTICIPATED GROWTH AND MARGIN
AGAIN
At an assumed Euro/U.S. Dollar exchange rate of 1.40, Infineon expects
full-year revenue growth of 20 percent, compared to a mid-teens percentage
guided for so far. Within this outlook, the company expects above group
average growth for IMM, growth about in-line with the group average for
ATV, and growth below group average for CCS revenues.
Total Segment Result margin for the 2011 fiscal year is expected to be
broadly in line with the 19.8 percent recorded for the first half of the
2011 fiscal year. This represents an increase from the earlier guidance
calling for a high teens percentage of sales.
In light of sustained high levels of order intake and order backlog
Infineon is currently considering a further increase to the current budget
of Euro 700 million for investments in the 2011 fiscal year. Investments in
the 2010 fiscal year amounted to Euro 325 million.
Depreciation and Amortization is now expected to come in at about Euro 375
million for the 2011 fiscal year, compared to Euro 336 million in the 2010
fiscal year and compared to the previous guidance of just over Euro 400
million. The reduction is due mainly to revised assumptions regarding
investment in and amortization of intangible assets.
Infineon segments' performance in the seond quarter of the 2011 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 May 3, 2011, 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 second quarter of the 2011 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)
- Jun 7, 2011 IFX Day, Capital Markets Day at headquarters in
Neubiberg, Germany
- Jul 28, 2011* Earnings Release for the Third Quarter of the 2011
Fiscal Year
- Nov 16, 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 million 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 CL 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 as well as our expected future results. 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.
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 and our quarterly and annual reports.
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.
End of Corporate News
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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(at)infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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Datum: 03.05.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 33935
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