DGAP-News: Infineon Technologies AG: Infineon reports

DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast Infineon Technologies AG: Infineon reports better than expected earnings for Q1 FY2014 30.01.2014 / 07:30 --------------------------------------------------------------------- - Q1 FY2014: REVENUE EUR984 MILLION; SEGMENT RESULT EUR116 MILLION; SEGMENT RESULT MARGIN 11.8 PERCENT - CAPITAL RETURNS PROGRAM STARTED: PARTS OF THE CONVERTIBLE BOND REPURCHASED, PUT OPTIONS ISSUED - OUTLOOK FOR Q2 FY2014: REVENUE EXPECTED TO INCREASE BY A MID SINGLE DIGIT PERCENTAGE COMPARED TO PREVIOUS QUARTER; SEGMENT RESULT MARGIN BETWEEN 10 AND 13 PERCENT Neubiberg, Germany - January 30, 2014 - Infineon Technologies AG today reports results for the first quarter of the 2014 fiscal year ended December 31, 2013. <pre> in Euro million Q1 FY14 Q4 FY13 +/- in % Revenue 984 1,053 (7) Segment Result 116 148 (22) Segment Result Margin [in %] 11.8% 14.1% Income (loss) from continuing operations 85 139 (39) Income (loss) from discontinued operations, 2 3 (33) net of income taxes Net income 87 142 (39) in Euro Basic earnings (loss) per share from 0.08 0.13 (38) continuing operations1 Basic earnings (loss) per share from - - - discontinued operations1 Basic earnings per share1 0.08 0.13 (38) Diluted earnings (loss) per share from 0.08 0.13 (38) continuing operations1 Diluted earnings (loss) per share from - - - discontinued operations1 Diluted earnings per share1 0.08 0.13 (38) </pre> 1 The calculation for earnings per share is based on unrounded figures. 'Infineon has made a good start into the new fiscal year. Revenue has developed in line with forecast during the first quarter. Earnings were better than expected, benefitting from the efficiency measures undertaken at our manufacturing facilities', stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. 'Good order intake and positive forecasts for the global economy underpin our outlook: Infineon is poised to profitably grow in 2014.' REVIEW OF GROUP FINANCIALS FOR THE FIRST QUARTER OF THE 2014 FISCAL YEAR First-quarter revenue for the Infineon Group totaled EUR984 million, 7 percent down on the EUR1,053 million recorded in the fourth quarter of the preceding fiscal year. Turnover was in line with the forecast made at the beginning of the quarter. As a consequence of the lower level of revenue, the Segment Result declined by 22 percent from EUR148 million in the previous quarter to EUR116 million in the first quarter of the 2014 fiscal year. The corresponding Segment Result Margin decreased from 14.1 percent to 11.8 percent. However, thanks to earlier-than-anticipated improvements in manufacturing productivity, the Segment Result Margin came in above the originally expected range of between 8 and 10 percent. Income from continuing operations in the first quarter of the 2014 fiscal year amounted to EUR85 million, compared with EUR139 million in the previous quarter. At EUR2 million, income from discontinued operations was almost unchanged from the EUR3 million recorded in the fourth quarter of the 2013 fiscal year. Net income for the first quarter of the current fiscal year totaled EUR87 million, compared with EUR142 million in the preceding quarter. Earnings per share (basic and diluted) decreased quarter-on-quarter from EUR0.13 to EUR0.08. Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development cost - were reduced to EUR129 million, compared with EUR155 million in the fourth quarter of the 2013 fiscal year. Depreciation and amortization increased marginally from EUR119 million in the fourth quarter to EUR120 million in the first quarter of the 2014 fiscal year. As a result of the reduction in net cash provided by operating activities from continuing operations, free cash flow from continuing operations decreased quarter-on-quarter from EUR156 million to EUR30 million. The gross cash position at the end of the first quarter of the 2014 fiscal year, at EUR2,279 million, was almost unchanged from the EUR2,286 million recorded at the end of September 2013. The net cash position improved by EUR65 million from EUR1,983 million at the end of the previous fiscal year to EUR2,048 million at the end of the first quarter of the current fiscal year, mainly resulting from the conversion of portions of the convertible bond due 2014. CAPITAL RETURNS, REDEMPTION OF CONVERTIBLE BOND On November 19, 2013 the Supervisory Board authorized a new capital returns program for an amount of up to EUR300 million, which can be used until September 30, 2015 to acquire shares or parts of the convertible bond due 2014. The Company began implementing the program in December 2013. Since then, it has repurchased portions of the convertible bond due 2014 and written put options on own shares. In total, convertible bonds with a nominal value of EUR11 million have been repurchased for EUR35 million and put options sold for 6 million shares. Details of repurchases and the current status of put options sold can be found on Infineon's website at 'About Infineon/Investor/Capital Returns/Program 2013'. The repurchases of convertible bonds with a nominal value of EUR11 million and the conversion of bonds with a nominal value of EUR64 million led to a nominal value of remaining bonds outstanding of below 20 percent of the nominal amount at issuance. This in turn, in accordance with the bond's Terms and Conditions, triggered an option for Infineon to call the convertible bond prior to its maturity. On December 23, 2013, Infineon announced the redemption of all outstanding convertible bonds at their principal amount plus accrued interest on February 7, 2014. The period for converting the convertible bond into shares prior to this redemption ends on January 31, 2014. In the meantime, all bonds have been converted into shares. OUTLOOK FOR THE SECOND QUARTER OF THE 2014 FISCAL YEAR Second-quarter revenue is forecast to rise by a mid single digit percentage, primarily as a result of higher revenue in the Automotive (ATV) und Chip Card & Security (CCS) segments. The Segment Result Margin is expected to come in at between 10 and 13 percent. UNCHANGED OUTLOOK FOR 2014 FISCAL YEAR For the 2014 fiscal year, based on an assumed exchange rate of the US dollar against the euro of 1.35, Infineon continues to forecast an increase in revenue of between 7 and 11 percent compared to the previous year and a Segment Result Margin of between 11 and 14 percent. The expected increase in revenue for the Industrial Power Control (IPC) segment should be well above the average for the Group. The growth rates forecast for the Power Management & Multimarket (PMM) and CCS segments are forecast to be roughly in line with the expected Group average. The ATV segment is likely to grow at a rate slightly lower than the Group average. Revenue generated by Other Operating Segments has decreased continiously in each of the last two fiscal years and only amounted to EUR26 million in the 2013 fiscal year. The figure for the 2014 fiscal year is expected to be unchanged or slightly lower. Planned investments for the 2014 fiscal year continue to be expected in the region of EUR650 million, with depreciation and amortization expected at EUR500 million or slightly above. Infineon segments' performance in the first quarter of the 2014 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 CONFERENCE Infineon will host a telephone conference call for analysts and investors (in English only) on January 30, 2014 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 2014 fiscal year. In addition, the Management Board will host a live 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 only) at: http://www.infineon.com/cms/en/corporate/inve...index.html INFINEON FINANCIAL CALENDAR (*preliminary) - Feb 13, 2014 Annual General Meeting 2014, Munich - Apr 29, 2014* Earnings Release for the Second Quarter of the 2014 Fiscal Year - Jun 11, 2014 Deutsche Bank German, Swiss & Austrian Conference, Berlin - Jun 17, 2014 JPMorgan Technology CEO Conference, London - Jul 30, 2014* Earnings Release for the Third Quarter of the 2014 Fiscal Year - Sep 9, 2014 Commerzbank Sector Week, Frankfurt - Nov 18, 2014* Earnings Release for the Fourth Quarter and Full 2014 Fiscal Year - Nov 19-20, 2014 Morgan Stanley TMT Conference, Barcelona - Dec 2-3, 2014 Credit Suisse TMT Conference, Scottsdale/Arizona 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 2013 fiscal year (ending September 30), the Company reported sales of EUR3.84 billion with around 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 --------------------------------------------------------------------- 30.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group 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: investor.relations@infineon.com 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 --------------------------------------------------------------------- 250070 30.01.2014