Corporate | 29 January 2007 07:30
Infineon Technologies AG / Quarter Results Corporate news transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Infineon reports results for the fiscal first quarter 2007 and provides outlook for the fiscal second quarter 2007 FISCAL FIRST QUARTER 2007 RESULTS (October 1 to December 31, 2006)in Euro million Q1 FY07 Q4 FY06 +/- Revenues Infineon excluding Qimonda 958 1,058 -9% Revenues Qimonda 1,173 1,232 -5% Revenues Infineon Group 2,131 2,290 -7% EBIT Infineon excluding Qimonda (9) (174) 95% EBIT Qimonda 225 204 10% EBIT Infineon Group 216 30 +++ Net income (loss) Infineon 120 (36) +++ Group Basic earnings (loss) per share 0.16 (0.05) +++ (in Euro) Diluted income (loss) per share 0.15 (0.05) +++ (in Euro)Munich, Germany, January 29, 2007. Infineon today reported results for the fiscal first quarter 2007. Revenues were Euro 2.13 billion, down seven percent compared to the fiscal fourth quarter 2006. Revenues of Infineon excluding Qimonda decreased to Euro 958 million from Euro 1.06 billion in the prior quarter. As expected, revenues in both the Communication Solutions and the Automotive, Industrial & Multimarket segments declined. Infineon group net income was Euro 120 million in the fiscal first quarter 2007 compared to a net loss of Euro 36 million in the prior quarter. This resulted in diluted earnings per share of Euro 0.15 compared to a basic and diluted loss per share of 0.05 Euro in the prior quarter. The Infineon group EBIT increased to Euro 216 million in the fiscal first quarter 2007, up from Euro 30 million in the prior quarter. Infineon excluding Qimonda experienced an EBIT loss of Euro 9 million in the quarter. Net charges in the fiscal first quarter 2007 were insignificant. EBIT loss for Infineon excluding Qimonda was Euro 174 million in the prior quarter, including charges of Euro 164 million, mainly resulting from the IPO of Qimonda and the insolvency of BenQ Mobile’s German subsidiary. Before these charges, the fourth quarter 2006 EBIT loss excluding Qimonda would have been Euro 11 million. 'In a challenging operating environment, results for the first quarter came out better than originally expected. For Infineon excluding Qimonda, EBIT remained substantially flat, before charges, despite the sales decline relative to the prior quarter. In a mixed market environment, we should return to revenue growth in Automotive, Industrial & Multimarket in the current quarter and see strong design-win momentum in Communication Solutions, in particular in the baseband business,' said Dr. Wolfgang Ziebart, CEO and President of Infineon Technologies AG. 'This lets us look to the coming quarters with full confidence.' OUTLOOK FOR THE FISCAL SECOND QUARTER 2007 In the fiscal second quarter 2007, Infineon expects revenues and EBIT for its businesses excluding Qimonda, and prior to inclusion of charges, to remain at least flat compared to the fiscal first quarter. The company expects revenues and EBIT in the Automotive, Industrial & Multimarket segment to increase compared to the prior quarter. In the Communication Solutions and Corporate and Eliminations segments, revenues and EBIT before charges are anticipated to remain broadly flat compared to the fiscal first quarter. The company currently expects that charges in connection with the restructuring of its baseband operations following the loss of business as a result of the insolvency of BenQ Mobile’s German subsidiary will be recorded in the second quarter, rather than the first quarter as originally expected, and will be significantly lower than the Euro 30 million originally anticipated. Automotive, Industrial & Multimarket (AIM): In the fiscal second quarter 2007, Infineon expects a return to growth in its Automotive, Industrial & Multimarket segment. The company foresees a slight increase in revenues quarter-on-quarter and an improved EBIT margin. With improving seasonality, the company anticipates that revenues in its automotive business will increase compared to the fiscal first quarter, despite continued weakness in the U.S. car market. Results in its industrial & multimarket and security & ASIC businesses are expected to remain broadly on the same level as in the previous quarter. Communication Solutions (COM): In the fiscal second quarter 2007, Infineon expects revenues and EBIT of the Communication Solutions segment to remain broadly unchanged compared to the previous quarter. Continued customer ramp-ups in the company’s mobile phone platform business are likely to offset the typical seasonal decline in the wireless business. In the broadband access business, revenues are anticipated to remain stable. Implemented measures for cost reductions in the mobile platform business are likely to contribute to EBIT improvements in the fiscal third quarter 2007. Qimonda: Qimonda expects its bit production to grow between 8 to 12 percent in the fiscal second quarter 2007. The company expects this bit growth to be based on improved productivity as a result of the continued conversion of capacities to 90nm technology and below. Qimonda also expects to maintain its share of bit-shipments to non-PC applications significantly above 50 percent in the next quarter. Other Operating Segments and Corporate and Eliminations: In the fiscal second quarter 2007, Infineon expects revenues and EBIT in Other Operating Segments and Corporate and Eliminations before charges to remain broadly unchanged relative to the previous quarter. The company currently expects that charges in connection with the restructuring of its baseband operations following the insolvency of BenQ Mobile’s German subsidiary will be recorded in the second quarter, rather than the first quarter as originally expected. The company is still implementing measures aimed at lowering the overall level of charges while maintaining the targeted savings, and currently expects that these charges will be significantly lower than the Euro 30 million originally anticipated. The Corporate and Eliminations segment will continue to reflect intra-group elimination of sales between Infineon and Qimonda. All figures 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 January 29, 2007, 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 fiscal first quarter 2007. In addition, the Infineon Management Board will host a telephone 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 conference calls will be available live and for download on the Infineon web site at http://www.infineon.com. Segments’ fiscal first quarter 2007 performance and additional major business highlights can be found in the quarterly information at http://www.infineon.com. D I S C L A I M E R This discussion includes forward-looking statements about our future business. These forward-looking statements include statements relating to future developments in the world semiconductor market, including the market for memory products, Infineon’s future growth, the benefits of research and development alliances and activities, our planned levels of future investment in the expansion and modernization of our production capacity, the introduction of new technology at our facilities, the continuing transitioning of our production processes to smaller structure sizes, cost savings related to such transitioning and other initiatives, our successful development of technology based on industry standards, our ability to offer commercially viable products based on our technology, our ability to achieve our cost savings and growth targets, and the impact of our carve-out of Qimonda, our memory products business, its initial public offering, and any further sales of Qimonda shares or other corporate financing measures in that regard. These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for our products in particular, the success of our development efforts, both alone and with our partners, the success of our efforts to introduce new production processes at our facilities and the actions of our competitors, the availability of funds for planned expansion efforts, the outcome of antitrust investigations and litigation matters, as well as the other factors mentioned herein and those described in the 'Risk Factors' section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on November 30, 2006. As a result, our actual results could differ materially from those contained in the forward-looking statements. Infineon does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. Contact: Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987 DGAP 29.01.2007 ---------------------------------------------------------------------- Language: English Issuer: Infineon Technologies AG Am Campeon 1-12 85579 Neubiberg/München Deutschland Phone: +49 (0)89 234-26655 Fax: +49 (0)89 234-955 2987 E-mail: investor.relations@infineon.com WWW: www.infineon.com ISIN: DE0006231004 WKN: 623100 Indices: DAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, München, Hamburg, Düsseldorf, Stuttgart; Terminbörse EUREX; Foreign Exchange(s) NYSE End of News DGAP News-Service ---------------------------------------------------------------------------