Corporate | 27 April 2007 07:30
Infineon Technologies AG / Quarter Results Release of a 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 second quarter 2007 and provides outlook for the fiscal third quarter 2007 FISCAL SECOND QUARTER 2007 RESULTS (January 1 to March 31, 2007)in Euro million Q2 FY07 Q1 FY07 +/- Revenues Infineon excluding Qimonda 978 958 2% Revenues Qimonda 984 1,173 -16% Revenues Infineon Group 1,962 2,131 -8% EBIT Infineon excluding Qimonda (28) (9) --- EBIT Qimonda 77 225 -66% EBIT Infineon Group 49 216 -77% Net income (loss) Infineon Group (11) 120 --- Basic earnings (loss) per share (in Euro) (0.01) 0.16 --- Diluted earnings (loss) per share (in Euro) (0.01) 0.15 ---Munich, Germany, April 27, 2007. Infineon today reported results for the second quarter and first half of fiscal 2007. Revenues were Euro 1.96 billion, down eight percent compared to the fiscal first quarter. Revenues of Infineon excluding Qimonda increased to Euro 978 million from Euro 958 million in the prior quarter. In the Automotive, Industrial & Multimarket segment revenues were with Euro 741 million the highest so far and better than originally anticipated. As expected, revenues in the Communication Solutions segment remained substantially unchanged compared to the prior quarter. Infineon group net loss was Euro 11 million in the fiscal second quarter 2007 compared to a net income of Euro 120 million in the prior quarter. This resulted in basic and diluted loss per share of Euro 0.01 compared to diluted earnings per share of Euro 0.15 in the prior quarter. Infineon group EBIT decreased to Euro 49 million in the fiscal second quarter 2007, down from Euro 216 million in the prior quarter. Infineon excluding Qimonda experienced an EBIT loss of Euro 28 million in the quarter. EBIT loss included charges of Euro 54 million. These charges primarily consist of restructuring charges of approximately Euro 20 million for planned downsizings mainly in the Essonnes, France (ALTIS) manufacturing facility and in the company’s baseband business after the BenQ insolvency as well as an asset write-down of Euro 35 million. Those charges were offset in part by gains from asset disposals and a revision to accrued personnel cost totaling Euro 25 million. Net charges in the prior quarter were insignificant. 'We are satisfied with the direction but not with the absolute level of the business performance from Infineon excluding Qimonda during the fiscal second quarter. We expect to improve upon this level in the current quarter as the ramp-up of platform shipments in Communication Solutions, coupled with ongoing traction in Automotive, Industrial & Multimarket, should lead to improved EBIT before charges for Infineon excluding Qimonda,' said Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies AG. 'Longer term, we are planning for this trend to continue. For Infineon excluding Qimonda, we are targeting at least break-even EBIT in fiscal 2007 and are aiming for ten percent EBIT margin in fiscal 2009. In fiscal 2008, we expect to be well on our way toward this goal.' OUTLOOK FOR THE FISCAL THIRD QUARTER 2007 In the fiscal third quarter 2007, Infineon expects revenues for its segments excluding Qimonda to increase, driven mainly by the Communication Solutions segment. EBIT for the businesses excluding Qimonda and before charges is expected to improve as well, mainly due to lower expected losses in the Communication Solutions segment. Charges in the fiscal third quarter 2007 are expected to be insignificant. Automotive, Industrial & Multimarket (AIM): In the fiscal third quarter 2007, Infineon expects revenues of its Automotive, Industrial & Multimarket segment at least to remain at the high level of the prior quarter. The company expects EBIT developing in-line with the revenue development. Infineon anticipates that revenues and EBIT in its automotive business will be slightly up compared to the fiscal second quarter. Results in its industrial & multimarket business are expected to remain broadly on the same level as in the previous quarter, whereas some further postponement of demand for hard-disk-drives is expected to negatively impact the security & ASIC business. Communication Solutions (COM): In the fiscal third quarter 2007, Infineon expects revenues of the Communication Solutions segment to increase strongly compared to the previous quarter, mainly driven by a significant increase in mobile phone platform shipments due to scheduled production ramp-ups for several major customers. The segment’s EBIT is also anticipated to improve considerably as revenues increase. In the broadband access business, revenues are anticipated to remain stable. The company continues to target break-even for its wireless business for the last quarter of calendar year 2007. Qimonda: Qimonda expects its bit production to grow by 8 to 12 percent in the fiscal third quarter 2007, mainly based on additional capacities from the 300-millimeter line in Richmond, USA, and the Joint Venture Inotera, Taiwan, as well as continued productivity improvements as a result of the conversion of more capacities to 80-nanometer technology and below. The company expects its share of bit-shipments to non-PC applications to be more than 50 percent for the fiscal third quarter and expects the trend of stronger demand for PC-related products to continue. Other Operating Segments and Corporate and Eliminations: In the fiscal third 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. Charges in the fiscal third quarter 2007 are expected to be insignificant. 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 April 27, 2007, 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 fiscal second quarter 2007. 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 conference calls will be available live and for download on the Infineon web site at http://www.infineon.com. Segments’ fiscal second 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 and Qimonda’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 continued development of the business of Qimonda as a stand-alone entity and any future corporate financing measures Infineon or Qimonda may undertake.. 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 27.04.2007 ---------------------------------------------------------------------- Language: English Issuer: 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@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 ---------------------------------------------------------------------------