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DGAP-News: Infineon Technologies AG: Segment Result in line with expectations; cost savings taking effect(DGAP Corporate News Via Acquire Media NewsEdge) DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast Infineon Technologies AG: Segment Result in line with expectations; cost savings taking effect 31.01.2013 / 07:30 --------------------------------------------------------------------- - Q1 FY 2013: Revenue EUR851 million; Segment Result EUR44 million - Outlook Q2 FY 2013: revenue expected to increase by a mid single digit percentage and Segment Result to be slightly up in absolute terms compared to previous quarter - Outlook FY 2013: revenue forecast to decrease by mid-to-high single digit percentage compared to previous fiscal year, with Segment Result Margin remaining at a mid-to-high single digit percentage of revenue despite headwinds from euro/US dollar exchange rate Neubiberg, Germany - January 31, 2013. Infineon Technologies AG today reported results for the first quarter of the 2013 fiscal year, ended December 31, 2012. in Euro million Q1 FY13 Q4 FY12 +/- in % Revenue 851 982 (13) Segment Result 44 116 (62) Segment Result Margin [in %] 5.2% 11.8% Income (loss) from continuing operations 26 129 (80) Income (loss) from discontinued operations, (7) 9 (178) net of income taxes Net income 19 138 (86) in Euro Basic earnings (loss) per share from 0.02 0.12 (83) continuing operations1 Basic earnings (loss) per share from --- 0.01 (100) discontinued operations1 Basic earnings per share1 0.02 0.13 (85) Diluted earnings (loss) per share from 0.02 0.12 (83) continuing operations1 Diluted earnings (loss) per share from --- 0.01 (100) discontinued operations1 Diluted earnings per share1 0.02 0.13 (85) 1 The calculation for earnings per share is based on unrounded figures. 'Revenue and earnings are in line with our expectations and cost saving measures are beginning to take effect. As long as the global economy does not stall, business should continue to pickup as expected', stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. 'Our delivery capability at top quality levels will enable us to take advantage of the chances the market offers.' REVIEW OF GROUP FINANCIALS FOR THE FIRST QUARTER OF THE 2013 FISCAL YEAR Group revenue of Infineon Technologies AG in the first quarter of the 2013 fiscal year totalled EUR851 million, 13 percent down on the EUR982 million recorded in the previous quarter. This performance was in line with expectations. Segment Result fell from EUR116 million in the fourth quarter of the 2012 fiscal year to EUR44 million in the first quarter of the current fiscal year, causing the Segment Result Margin to decline from 11.8 percent to 5.2 percent. The decrease in Segment Result and Segment Result Margin in the first quarter was attributable to the sharp drop in revenue. Despite a negative impact of EUR6 million arising in connection with the euro/US dollar exchange rate, the scale of the decrease was in line with expectations. The measures aimed at stabilizing the margin announced in November in conjunction with the publication of the fourth quarter and 2012 fiscal year results are taking effect. Income from continuing operations in the first quarter of the 2013 fiscal year amounted to EUR26 million, compared with EUR129 million recorded in the final quarter of the previous fiscal year. The first quarter loss from discontinued operations was negative EUR7 million, marginally down from the positive EUR9 million reported in the fourth quarter. Overall, net income fell from EUR138 million in the fourth quarter to EUR19 million in the first quarter of the current fiscal year. Earnings per share declined quarter-on-quarter from EUR0.13 to EUR0.02 (basic and diluted). Investments - which the Company defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized research and development assets - amounted to EUR88 million in the first quarter of the 2013 fiscal year, compared to investments of EUR246 million one quarter earlier. The depreciation and amortization expense increased marginally to EUR116 million, compared to a fourth-quarter expense of EUR115 million. Free cash flow from continuing operations deteriorated from positive EUR47 million in the previous quarter to negative EUR128 million in the first quarter. The principal reasons for the first quarter's negative free cash flow were the reduction in net income, significantly lower trade payables due to reduced investment levels and a cash-relevant decrease in current provisions. Infineon repurchased 6 million of its own shares during the first quarter of the 2013 fiscal year for a total of EUR38 million with put options at an average exercise price of EUR6.29 per share. The effective price paid per share, net of all premiums for options exercised or expired during the quarter, was EUR5.74. These two factors - negative free cash flow and the repurchase of own shares via put options - resulted in a reduction in cash levels over the course of the quarter under report, with the gross cash position down from EUR2.235 billion at the end of September 2012 to EUR2.081 billion at December 31, 2012 and the net cash position down from EUR1.940 billion to EUR1.768 billion over the same period. OUTLOOK FOR THE SECOND QUARTER OF THE 2013 FISCAL YEAR Revenue is forecast to rise by a mid single digit percentage in the second quarter of the 2013 fiscal year despite the weakness of the US dollar. The Industrial Power Control (IPC), Power Management & Multimarket (PMM), Chip Card & Security (CCS) and Other Operating (OOS) segments are all expected to report revenues at similar levels to the previous quarter, while the Automotive (ATV) segment is likely to see a distinct increase. The second quarter Segment Result is expected to be slightly up in absolute terms compared to the first quarter. UNCHANGED OUTLOOK FOR 2013 FISCAL YEAR For the purposes of the outlook for the remainder of the year, Infineon has adjusted its assumed exchange rate from US dollar 1.25 to US dollar 1.30 to the euro. Despite the negative impact of this adjustment, Infineon continues to forecast a mid-to-high single digit percentage decrease in revenue in the 2013 fiscal year compared to one year earlier. Revenues generated by the ATV, PMM and CCS segments are expected to fare better than the Group average whereas IPC is expected to fare significantly worse than the Group average. Revenue of the OOS segment will again fall sharply, as sales to the previously sold Wireline Communications and Wireless mobile phone businesses are further reduced. In margin terms, Infineon continues to forecast a mid-to-high single digit Segment Result Margin despite the unfavorable development of the euro/US dollar exchange rate. The measures aimed at stabilizing the margin announced in November in conjunction with fourth quarter and 2012 fiscal year reporting will continue to have a positive impact on Segment Result in the coming quarters. Investments - defined as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized research and development expenditures - are likely to be in the region of EUR400 million for the full fiscal year, compared to depreciation and amortization of approximately EUR470 million. Infineon segments' performance in the first quarter of the 2013 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 will host a telephone conference call for analysts and investors (in English only) on January 31, 2013 at 10:00 am (CET), 4:00 am (EST). During the call, the Infineon Management Board will present the Company's results from the first quarter of the 2013 fiscal year. In addition, the Management Board will host a telephone conference with the media at 11:30 am (CET), 5:30 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 Q1 Investor Presentation is available (in English) at: http://www.infineon.com/cms/en/corporate/investor/reporting/index.html INFINEON FINANCIAL CALENDAR (*preliminary) - Feb 28, 2013 Annual General Meeting 2013, Munich (Start: 10:00 am CET) - Mar 12 - 13, 2013 UBS European Technology Conference, London - May 2, 2013* Earnings Release for the Second Quarter of the 2013 Fiscal Year - Jul 30, 2013* Earnings Release for the Third Quarter of the 2013 Fiscal Year - Nov 12, 2013* Earnings Release for the Fourth Quarter and Full 2013 Fiscal Year - Nov 18 - 19, 2013 Company roadshow - including presentation by Andreas Urschitz, Division President, Power Management & Multimarket (PMM), London - Nov 20 - 21, 2013 Morgan Stanley TMT Conference, Barcelona 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 2012 fiscal year (ending September 30), the Company reported sales of Euro 3.9 billion with close to 26,700 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). 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. End of Corporate News --------------------------------------------------------------------- 31.01.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: [email protected] Internet: www.infineon.com ISIN: DE0006231004 WKN: 623100 Indices: DAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 200232 31.01.2013 |