Corporate | 29 July 2009 07:31
Infineon Technologies AG / Quarter Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Infineon reports results for the third quarter of the 2009 fiscal year and provides outlook for the fourth quarter INFINEON REPORTS THIRD QUARTER REVENUES UP 13 PERCENT QUARTER-ON-QUARTER AND SIGNIFICANT IMPROVEMENT IN EARNINGS; FREE CASH FLOW FROM CONTINUING OPERATIONS OF EURO 152 MILLION THIRD QUARTER 2009 RESULTS (April 1 to June 30, 2009)in Euro million Q3 FY09 Q2 FY09 +/- Revenues 845 747 13% Loss from continuing operations (20) (150) 87% Loss from discontinued operations, net of tax (3) (108) 97% Net loss (23) (258) 91% in Euro Basic and diluted loss per share from continuing (0.03) (0.20) 85% operations Basic and diluted loss per share from _ (0.12) 100% discontinued operations Basic and diluted loss per share (0.03) (0.32) 91%Neubiberg, Germany - July 29, 2009 - Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today reported results for the third quarter of the 2009 fiscal year, ended June 30, 2009. Infineon's revenues in the third quarter were Euro 845 million, up 13 percent compared to the second quarter and down 18 percent year-over-year. Infineon's third quarter Segment Result improved significantly compared to the previous quarter, net loss was Euro 23 million. 'Thanks to higher sales, higher factory loading and the cost savings from our IFX10+ cost-reduction program, we improved our operational performance considerably during the third quarter compared to the previous quarter. Together with strict cash management, we generated positive free cash flow from continuing operations of Euro 152 million and reduced our net debt position significantly', said Peter Bauer, CEO of Infineon Technologies AG. During the third quarter, Infineon implemented a series of measures to improve its balance sheet and to achieve a more focussed product portfolio. The company launched a cash tender offer for a portion of its outstanding bonds and issued new convertible bonds. In July 2009, it announced the sale of its Wireline Communications business and launched the pending rights offering, backstopped by Apollo. 'If successful, these steps would complete the refinancing of the company', said Peter Bauer. The sequential increase in revenues reflects increased revenues in all of the company's five operating segments. The Wireless Solutions (WLS) segment achieved by far the strongest percentage increase in revenues, with the segments Industrial & Multimarket (IMM), Automotive (ATV), Wireline Communications (WLC), and Chip Card & Security (CCS) following at some distance. Third quarter earnings improved significantly compared to the second quarter. The drivers of the improvement included significant cost reductions, mainly due to the IFX10+ cost-reduction program, higher factory loading as Infineon carefully adjusted production according to the improved demand environment, and higher sales levels driven by the company's strong product portfolio. All of the company's operating segments achieved positive Segment Result, except the ATV segment which posted a Segment Result of negative Euro 17 million. Net loss from continuing operations for the third quarter was Euro 20 million, resulting in basic and diluted loss per share from continuing operations of Euro 0.03. For the second quarter, net loss from continuing operations was Euro 150 million, and basic and diluted loss per share from continuing operations was Euro 0.20. Infineon reported loss from discontinued operations, net of income taxes, of Euro 3 million for the third quarter. As a result of Qimonda's application to open insolvency proceedings on January 23, 2009, Infineon deconsolidated Qimonda during the second quarter. For the third quarter, Infineon reported group net loss of Euro 23 million, and basic and diluted loss per share of Euro 0.03. In the third quarter, Infineon's free cash flow from continuing operations was Euro 152 million, compared to a free cash flow from continuing operations of negative Euro 22 million in the second quarter. This strong improvement was driven by improved operating results and the company's strict cash management. Through the company's IFX10+ cost-reduction program, Infineon achieved significant cost reductions, also in the third quarter. Infineon's operating expenses decreased by Euro 88 million compared to the fourth quarter of the 2008 fiscal year, which the company believes was principally due to the IFX10+ cost-reduction program. This figure includes cost savings resulting from reduced working hours and unpaid leave. In addition, Infineon contained capital expenditures (CapEx) to Euro 27 million in the third quarter, including capitalized intangible assets, while depreciation and amortization was Euro 133 million. Within working capital, each of trade and other receivables, and inventories declined by Euro 22 million in the third quarter, while trade and other payables increased by Euro 63 million, compared to the previous quarter. In total, the company reduced net working capital by Euro 36 million during the third quarter. Free cash flow from continuing operations of Euro 152 million for the third quarter also included cash inflow of Euro 17 million from the German bank deposit protection fund following the insolvency of Lehman Brothers and cash outflows of approximately Euro 25 million in connection with the IFX10+ cost-reduction program. Due to the strong free cash flow, Infineon reduced its net debt position at book values by Euro 170 million to Euro 151 million on June 30, 2009 compared to Euro 321 million on March 31, 2009. OUTLOOK FOR THE FOURTH QUARTER Reflecting the pending sale of the WLC business, Infineon will classify this business as discontinued operations in its consolidated financial statements for the fiscal quarter and fiscal year ending September 30, 2009, effective as of the fourth quarter. Infineon expects group revenues to grow in the fourth quarter compared to the third quarter - on a comparable basis, excluding the WLC segment. The company anticipates the revenue increase to be driven in particular by the segments ATV and IMM. Infineon plans continued, but cautious increases in production levels in the fourth quarter as it adapts capacity loadings to the improved demand. Together with the benefits of anticipated higher sales levels and continued tight cost control, the company therefore expects Segment Result - on a comparable basis, excluding the WLC segment - to improve as well. For the 2009 fiscal year, Infineon now expects depreciation and amortization to exceed the previous forecast level of Euro 500 million. The successful sale of the WLC business and the successful completion of the rights offering are expected to lead to a solid balance sheet. Infineon intends to use this strength and concentrate its resources on the four remaining segments, exploiting the growth potential offered by the overall drivers of energy efficiency, communications, and security. At the same time, the company plans to maintain a high level of cost and cash flow discipline. The Infineon segments' performance in the third quarter of the 2009 fiscal year can be found in the quarterly information at http://www.infineon.com. All figures in this quarterly information are unaudited. ANALYST AND PRESS TELEPHONE CONFERENCES Due to special legal restrictions about communications in conjunction with the announced rights offering and the publication of the prospectus on July 16, 2009, Infineon will not conduct an analyst and press conference call on the 2009 fiscal third quarter results today. Infineon's investor and media relations teams will be available for questions following the publication of the earnings announcement. IFX FINANCIAL CALENDAR (*preliminary date) - Nov 19, 2009* Earnings Release for the Fourth Quarter and Full 2009 Fiscal Year New in the IFX podcast section at www.infineon.com/podcast - Press conference call about the sale of the Infineon Wireline Communications business D I S C L 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. 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, the continuing transitioning of our production processes to smaller structure sizes, our ability to continue to offer commercially viable products, and our expected or projected future results. These forward-looking statements are subject to a number of uncertainties, including broader economic developments, including the duration and depth of the current economic downturn; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles and consumer electronics, 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 availability of funds, including for the re-financing of our indebtedness; 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 those described in the 'Risk Factors' section of the prospectus relating to our pending rights offering (a form of which was approved by the German Federal Financial Supervisory Authority (BaFin) on July 16, 2009 and a form of which is contained in the registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission on July 16, 2009). 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. Contact: Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987 29.07.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- 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 Internet: www.infineon.com ISIN: DE0006231004 WKN: 623100 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Hannover, Stuttgart, Hamburg; Terminbörse EUREX End of News DGAP News-Service ---------------------------------------------------------------------------