DGAP-News: Infineon Technologies AG: INFINEON REPORTS

DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Half Year Results Infineon Technologies AG: INFINEON REPORTS STRONG Q2 FY14 SALES AND SEGMENT RESULT 29.04.2014 / 07:30 --------------------------------------------------------------------- - Q2 FY 2014: REVENUE EUR1,051 MILLION, SEGMENT RESULT EUR146 MILLION, SEGMENT RESULT MARGIN 13.9 PERCENT - OUTLOOK Q3 FY2014: REVENUE EXPECTED TO INCREASE BETWEEN 4 AND 8 PERCENT SEQUENTIALLY WITH SEGMENT RESULT MARGIN BETWEEN 14 AND 16 PERCENT - BOTH REVENUE AND SEGMENT RESULT FOR THE 2014 FISCAL YEAR ARE EXPECTED TO BE AT LEAST AT THE UPPER END OF THE GUIDANCE RANGES OF 7 TO 11 PERCENT YEAR-ON-YEAR SALES GROWTH AND SEGMENT RESULT MARGIN BETWEEN 11 AND 14 PERCENT - REVENUE GROWTH IN 2014 FISCAL YEAR MAINLY DRIVEN BY AUTOMOTIVE AND INDUSTRIAL POWER CONTROL Neubiberg, Germany - April 29, 2014. Infineon Technologies AG today reports results for the second quarter of the 2014 fiscal year, ended March 31, 2014. <pre> in Euro million Q2 FY14 Q1 FY14 +/- in % Revenue 1,051 984 7 Segment Result 146 116 26 Segment Result Margin [in %] 13.9% 11.8% Income (loss) from continuing operations 114 85 34 Income (loss) from discontinued operations, 10 2 +++ net of income taxes Net income 124 87 43 in Euro Basic earnings (loss) per share from 0.10 0.08 25 continuing operations1 Basic earnings (loss) per share from 0.01 - +++ discontinued operations1 Basic earnings per share1 0.11 0.08 38 Diluted earnings (loss) per share from 0.10 0.08 25 continuing operations1 Diluted earnings (loss) per share from 0.01 - +++ discontinued operations1 Diluted earnings per share1 0.11 0.08 38 </pre> 1 The calculation for earnings per share is based on unrounded figures. "Sales grew in the second quarter. Growth is in line with our expectations", stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "By capitalizing on our market opportunities, we have been able to markedly improve our profitability." The positive development should continue in the second half of the year. "Demand for our products is strengthening and our order books are filling up nicely. Thanks to our prior investments, we are in a favorable position to outgrow the market in this fiscal year", says Dr. Reinhard Ploss. REVIEW OF GROUP FINANCIALS FOR THE SECOND QUARTER OF THE 2014 FISCAL YEAR Second-quarter Group revenue increased 7 percent from EUR984 million to EUR1,051 million, with all four operating segments contributing to growth. Segment Result improved by 26 percent from EUR116 million in the preceding quarter to EUR146 million in the second quarter of the current fiscal year. The Segment Result Margin increased to 13.9 percent, compared with the first quarter's margin of 11.8 percent. The improvement in Segment Result was influenced partly by higher revenue and partly by multiple nonrecurring effects. Starting in the second quarter of the 2014 fiscal year, centralized production-related overhead costs are allocated on a more differentiated basis with reference to front-end and back-end added value for inventory valuation purposes. This results in a positive one-time effect on earnings of EUR25 million related to work in progress inventories. A number of other factors, however, worked in the opposite direction. Excluding all these effects, Segment Result Margin would have been approximately 13 percent. Income from continuing operations rose to EUR114 million in the second quarter, compared with EUR85 million in the previous quarter. Second-quarter income from discontinued operations increased from EUR2 million to EUR10 million. Net income for the second quarter of the 2014 fiscal year improved to EUR124 million, compared with EUR87 million in the preceding quarter. Earnings per share (basic and diluted) increased from EUR0.08 to EUR0.11. Investments - which the Company defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development costs - increased quarter-on-quarter from EUR129 million to EUR154 million. Depreciation and amortization rose from EUR120 million in the first quarter to EUR126 million in the second. Free cash flow from continuing operations improved quarter-on-quarter from EUR30 million to EUR51 million, reflecting the fact that the significantly higher level of net cash provided by operating activities was only partly offset by increased cash used in investing activities. The gross cash position at March 31, 2014 decreased to EUR2,198 million, mainly as a result of the dividend of EUR129 million paid during the second quarter. At the end of December 2013, the gross cash position had been EUR2,279 million. The net cash position declined from EUR2,048 million at December 31, 2013 to EUR2,010 million at March 31, 2014. The decrease was less pronounced than that of the gross cash position, as Infineon had announced the redemption of all outstanding convertible bonds on February 7, 2014 causing all bondholders to exercise their conversion rights, thus reducing short-term debt by EUR38 million. In February 2014 Infineon paid a dividend of EUR0.12 per share (EUR129 million in total) for the previous fiscal year. The capital returns program also continued in the second quarter with the sale of put options for 4.5 million shares. At March 31, 2014, put options for 10.5 million shares were outstanding. Details of put options and the current status of the capital returns program can be found on Infineon's website at "About Infineon/ Investor/Capital Returns/Program 2013". OUTLOOK FOR THE THIRD QUARTER OF THE 2014 FISCAL YEAR Based on the positive order backlog across all operating segments, Infineon expects continued growth in the third quarter of the 2014 fiscal year with an increase in revenue of between 4 and 8 percent compared to the previous quarter. The third-quarter Segment Result Margin is expected to come in between 14 and 16 percent. OUTLOOK FOR 2014 FISCAL YEAR Infineon now expects the increase in revenue and the Segment Result Margin for the 2014 fiscal year to be at least at the upper end of the ranges previously indicated (year-on-year increase in revenue of between 7 and 11 percent, Segment Result Margin of between 11 and 14 percent). The assumed exchange rate of the US dollar against the euro remains unchanged at 1.35. The expected increase in revenue for the Industrial Power Control (IPC) segment should be well above the average for the Group. The Automotive (ATV) segment is expected to grow roughly in line with the Group average. The growth rates forecast for the Power Management & Multimarket (PMM) and Chip Card & Security (CCS) segments are slightly lower than the Group average. Planned investments for the 2014 fiscal year are in the region of EUR650 million, with depreciation and amortization expected at EUR500 million or slightly higher. Infineon segments' performance in the second 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 April 29, 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 second 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 Q2 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/inve...index.html INFINEON FINANCIAL CALENDAR (*preliminary) - Jun 5, 2014 DZ Bank Sustainable Technologies Conference, Zurich - 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 - Sep 17, 2014* Conference Call by Jochen Hanebeck, Division President Automotive - Sep 23, 2014 Baader Investment Conference, Munich - Sep 24, 2014 Berenberg Bank and Goldman Sachs German Corporate Conference, Munich - Nov 19-20, 2014 Morgan Stanley TMT Conference, Barcelona - Nov 27, 2014* Earnings Release for the Fourth Quarter and Full 2014 Fiscal Year - 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 --------------------------------------------------------------------- 29.04.2014 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 --------------------------------------------------------------------- 265133 29.04.2014