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
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)
Basic earnings (loss) per share from 0.02 0.12 (83)
Basic earnings (loss) per share from --- 0.01 (100)
Basic earnings per share1 0.02 0.13 (85)
Diluted earnings (loss) per share from 0.02 0.12 (83)
Diluted earnings (loss) per share from --- 0.01 (100)
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
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
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
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:
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
- Jul 30, 2013* Earnings Release for the Third Quarter of the 2013 Fiscal
- Nov 12, 2013* Earnings Release for the Fourth Quarter and Full 2013
- Nov 18 - 19, 2013 Company roadshow - including presentation by Andreas
Urschitz, Division President, Power Management & Multimarket (PMM),
- Nov 20 - 21, 2013 Morgan Stanley TMT Conference, Barcelona
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
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Company: Infineon Technologies AG
Am Campeon 1-12
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
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