DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results
Infineon reports results for the first quarter of the 2012 fiscal year
01.02.2012 / 07:30
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Quarter Results / Final Results
INFINEON FIRST QUARTER FY 2012 SALES AND EARNINGS SLIGHTLY AHEAD OF
GUIDANCE
QUARTERLY SALES OF EURO 946 MILLION DOWN FROM EURO 1.038 BILLION
SUPERIOR GROWTH AND PROFITABILITY: 14 PERCENT GROWTH IN CALENDAR YEAR 2011
VS 3 PERCENT FOR INDUSTRY EXCLUDING MEMORIES AND MICROPROCESSORS
14.9 PERCENT TOTAL SEGMENT RESULT MARGIN IN-LINE WITH THROUGH-CYCLE TARGET
SUSTAINED EFFORTS FOR FUTURE SUCCESS: COUNTER-CYCLICAL INVESTMENTS OF EURO
294 MILLION TO ENABLE MOVE TO HIGHLY COMPETITIVE 300MM MANUFACTURING;
SUSTAINING HIGH R&D AND SELLING EXPENSE
STRONG RETURNS: 27 PERCENT ROCE FOR THE QUARTER; 1.0 PERCENT REDUCTION IN
FULLY DILUTED SHARE COUNT
OUTLOOK FOR THE SECOND QUARTER OF THE FY 2012: SALES TO BE FLAT TO DOWN
SLIGHTLY; TOTAL SEGMENT RESULT MARGIN TO BE DOWN BROADLY BY 1 PERCENTAGE
POINT
Neubiberg, Germany - February 1, 2012 - Infineon Technologies AG today
reported results for the first quarter of the 2012 fiscal year, ended
December 31, 2011.
FIRST QUARTER 2012 RESULTS (October 1 to December 31, 2011)
<pre>
in Euro million Q1 FY12 Q4 FY11 +/- in
%
Revenue 946 1,038 (9)
Total Segment Result 141 195 (28)
Total Segment Result Margin [in %] 14.9% 18.8%
Income (loss) from continuing operations 104 247 (58)
Income from discontinued operations, net of (8) (122) 93
income taxes
Net income 96 125 (23)
in Euro
Basic earnings (loss) per share from continuing 0.10 0.23 (57)
operations
Basic earnings (loss) per share from (0.01) (0.11) 91
discontinued operations
Basic earnings per share 0.09 0.12 (25)
Diluted earnings (loss) per share from 0.10 0.22 (55)
continuing operations
Diluted earnings (loss) per share from (0.01) (0.11) 91
discontinued operations
Diluted earnings per share 0.09 0.11 (18)
</pre>
'Infineon continues to deliver solid profitability despite a difficult
economic environment. Our strategy to focus on less volatile and more
profitable businesses is paying off demonstrated by a stronger top-line as
compared to our peers', says Peter Bauer, CEO of Infineon Technologies AG.
'To secure future profitable growth in our markets of energy efficiency,
mobility and security we continue to invest in R&D, customer relationships
and manufacturing capacity.'
REVIEW OF GROUP FINANCIALS FOR THE FIRST QUARTER OF THE 2012 FISCAL YEAR
Infineon's revenues in the first quarter of the 2012 fiscal year were Euro
946 million compared with revenues of Euro 1.038 billion in the fourth
quarter of the 2011 fiscal year. The decline occurred due to customer
caution as a result of global economic uncertainties.
First quarter Total Segment Result was Euro 141 million, down from Euro 195
million in the prior quarter. First quarter Total Segment Result Margin
decreased to 14.9 percent, from 18.8 percent in the previous quarter, but
remained in line with the Group's through-cycle target of 15 percent. The
decline in Total Segment Result and Margin was primarily due to lower
sales. Total Segment Result Margin remained slightly ahead of Company
guidance for the quarter as operating expenses, in particular R&D expenses,
were slightly lower than planned and slightly lower than in the previous
quarter.
Infineon reported income from continuing operations of Euro 104 million,
down from Euro 247 million in the previous quarter. In addition to a lower
Total Segment Result, income from continuing operations now contained a tax
expense of Euro 20 million after a tax benefit of Euro 75 million in the
preceding quarter. Basic and diluted earnings per share from continuing
operations decreased to Euro 0.10, down from Euro 0.23 and Euro 0.22,
respectively, in the last quarter.
Loss from discontinued operations was reduced substantially from a loss of
Euro 122 million in the fourth quarter of the last fiscal year to a loss of
Euro 8 million in the first quarter of the current financial year. Basic
and diluted loss per share from discontinued operations stood at a loss of
Euro 0.01, down from a loss of Euro 0.11.
Net income decreased to Euro 96 million from Euro 125 million in the prior
quarter. Basic earnings per share were Euro 0.09 compared with Euro 0.12 in
the preceding quarter and diluted earnings per share were Euro 0.09
compared with Euro 0.11.
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, were Euro 294 million in the first
quarter, up from Euro 273 million in the prior quarter. Approximately one
third of the annual investment budget was spent already in the first
quarter.
Depreciation and amortization was almost flat at Euro 97 million, compared
to Euro 98 million in the prior quarter. Whilst higher investments of
recent quarters generally drive increasing depreciation, the end of
depreciation of older equipment at the facility in Kulim, Malaysia, more
than offset this in the first quarter of the 2012 fiscal year.
Free cash flow from continuing operations for the first quarter turned
negative to Euro 234 million. In the previous quarter, free cash flow from
continuing operations was positive Euro 97 million. The development of free
cash flow from continuing operations reflects lower results, investments of
Euro 294 million and an increase in working capital of Euro 202 million.
Negative free cash flow, further capital returns of Euro 70 million, as
well as a net reduction of debt of Euro 23 million, drove a decline in the
Company's gross cash position to Euro 2,337 million, down from Euro 2,692
million at the end of September, 2011. Net cash declined to Euro 2,068
million from Euro 2,387 million at the end of the preceding quarter.
Within the capital returns program, the Company spent Euro 50 million for
the repurchase of a nominal value of Euro 19 million of its 2014
convertible bond. This effectively reduced the fully diluted number of
shares outstanding by roughly 8 million or approximately 0.7 percent. In
addition, a total of 3 million put options were exercised during the
quarter for a cash outflow of Euro 20 million. This resulted in the
buy-back of 3 million shares or 0.3 percent of fully diluted shares
outstanding.
INFINEON'S SUPERVISORY BOARD AND MANAGEMENT BOARD WILL PROPOSE A DIVIDEND
OF EURO 0.12 PER SHARE TO THE ANNUAL GENERAL MEETING, UP 20 PERCENT FROM
PREVIOUS YEAR
On November 23, 2011, the Management Board and the Supervisory Board
decided to propose to the upcoming Annual General Meeting a 20 percent
dividend increase to Euro 0.12 per qualifying ordinary share. For the 2010
fiscal year, the Company paid a dividend of Euro 0.10 per share. If the
upcoming Annual General Meeting on March 8, 2012 approves the proposal, the
dividend payout will amount to approximately Euro 130 million, depending on
the effective number of qualifying shares.
PRODUCT AND INNOVATION HIGHLIGHTS
Following a philosophy of anticyclical investment and in an effort to fully
capitalize on future growth opportunities, Infineon maintains high levels
of investment and R&D as well as selling expenses also in economically more
challenging times.
One example for this is the high level of investments of Euro 294 in the
first quarter of the 2012 fiscal year. On the one hand, this aims at
enabling future growth driven by secular growth trends such as renewable
energies, electromobility, variable speed drives or more efficient power
conversion in electricity consuming devices. On the other hand, Infineon
invests into securing and expanding long-term competitiveness:
300-millimeter production of power semiconductors on thin wafers in
Dresden, Germany, the construction of a second 200-millimeter wafer
fabrication building at the highly cost-efficient site in Kulim, Malaysia,
expansion of power module capacity in Cegléd, Hungary, as well as numerous
automation and quality projects.
The examples set forth below illustrate Infineon's focus on innovative
developments to drive differentiation and customer utility at the same
time, hence enabling market success:
- Near Field Communication (NFC) is one example. NFC contactless
communication allows smart phones and other mobile devices to function
as means for payment, as tickets for public transportation and the like
or as keys. NFC technology should enjoy high growth rates going
forward. As stated in an IMS Research study dated January 2012,
Infineon dominated the NFC security microcontroller market in 2011 with
51.5 percent market share.
- In a similar vein, the Company has just announced a new family of
ARM(R)-based 32-bit XMC4000 microcontrollers optimized for industrial
applications such as electrical motors, factory automation and solar
inverters. These new devices will enable our customers to benefit from
our system expertise, low software development effort and maximum
flexibility.
OUTLOOK FOR THE SECOND QUARTER OF THE 2012 FISCAL YEAR
With continued confidence on the part of automotive customers and some
early signs of stabilization in the chipcard and lower power markets,
Infineon expects revenues for the second quarter of the 2012 fiscal year to
be flat to down slightly compared to the first quarter. Within this revenue
outlook, Automotive (ATV) sales should be up and Chip Card & Security (CCS)
turnover should be about flat. Seasonal weakness will drive a decline in
Power Management & Multimarket (PMM) sales, while Industrial Power Control
(IPC) turnover should continue to decline owing to the late-cycle nature of
this business.
Total Segment Result Margin should be down broadly by 1 percentage point.
With a view to the growth prospects of the Company, Infineon is planning
slightly higher R&D and SG&A expense for the second quarter of the 2012
fiscal year relative to the preceding quarter.
As announced earlier, Infineon has divided its segment Industrial &
Multimarket (IMM) into two new segments effective January 1, 2012:
Industrial Power Control (IPC) and Power Management & Multimarket (PMM).
The Company will report exclusively according to its new structure from
second quarter of the 2012 fiscal year onwards.
Infineon segments' performance in the first quarter of the 2012 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 Technologies AG will conduct a telephone conference (in English
only) with analysts and investors on February 1, 2012, at 10:00 a.m.
Central European Time (CET), 4:00 a.m. Eastern Standard Time (US EST), to
discuss operating performance during the first quarter of the 2012 fiscal
year. In addition, the Infineon Management Board will host a telephone
conference with the media at 11:30 a.m. (CET), 5:30 a.m. (US EST). It can
be followed in German and English over the Internet. Both conferences will
be available live and for download on the Infineon web site at
www.infineon.com/investor .
Please find the Q1 Investor Presentation on our web site at
http://www.infineon.com/cms/en/corporate/investor/reporting/index.html
IFX financial calendar (*preliminary date)
- Mar 8, 2012 Annual General Meeting 2012, Munich, Germany(Start: 10:00
a.m. CET)
- May 3, 2012* Earnings Release for the Second Quarter of the 2012 Fiscal
Year
- May 15 - 17, 2012 JPMorgan Global TMT Conference, Boston, USA
- Jun 5, 2012 DZ Bank Sustainability Technologies Conference, Zurich,
Switzerland
- Jul 31, 2012* Earnings Release for the Third Quarter of the 2012 Fiscal
Year
- Aug 29 - 30, 2012 Commerzbank Sector Conference Week, Frankfurt,
Germany
- Sep 13, 2012 JPMorgan Pan Euro Tech Conference, London, UK
- Sep 26, 2012 Baader Investment Conference, Munich, Germany
- Nov 13, 2012* Earnings Release for the Fourth Quarter and Full 2012
Fiscal Year
- Nov 14 - 16, 2012 Morgan Stanley TMT Conference, Barcelona, Spain
- Nov 27 - 28, 2012 Credit Suisse Technology Conference, Scottsdale, USA
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 2011 fiscal year (ending
September 30), the Company reported sales of Euro 4.0 billion with close to
26,000 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 includes forward-looking statements and assumptions
about the future of Infineon's business and the industry in which we
operate as well as our expected future results. 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, our ability to continue
to offer commercially viable products.
These forward-looking statements are subject to a number of uncertainties,
including broader economic developments, trends in demand and prices for
semiconductors generally and for our products in particular, as well as for
the end-products 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 continued availability of adequate funds, 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 our quarterly and annual reports.
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.
End of Corporate News
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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: investor.relations@infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Terminbörse EUREX
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