DGAP-News: Infineon Technologies AG: Q3 FY14: INFINEON

DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast Infineon Technologies AG: Q3 FY14: INFINEON CONTINUES ON ITS GROWTH TRACK 30.07.2014 / 07:30 --------------------------------------------------------------------- - Q3 FY 2014: REVENUE EUR1,110 MILLION; SEGMENT RESULT EUR170 MILLION; SEGMENT RESULT MARGIN 15.3 PERCENT - OUTLOOK Q4 FY 2014: REVENUE GROWTH BETWEEN 3 AND 7 PERCENT VERSUS THE PREVIOUS QUARTER WITH A SEGMENT RESULT MARGIN BETWEEN 15 AND 17 PERCENT Neubiberg, Germany - July 30, 2014. Infineon Technologies AG today reports its results for the third quarter of the 2014 fiscal year, ended June 30, 2014. <pre> in Euro million Q3 FY14 Q2 FY14 +/- in % Revenue 1,110 1,051 6 Segment Result 170 146 16 Segment Result Margin [in %] 15.3 13.9 Income (loss) from continuing operations 143 114 25 Income (loss) from discontinued operations, - 10 --- net of income taxes Net income 143 124 15 in Euro Basic earnings (loss) per share from 0.13 0.10 30 continuing operations1 Basic earnings (loss) per share from - 0.01 --- discontinued operations1 Basic earnings per share1 0.13 0.11 18 Diluted earnings (loss) per share from 0.13 0.10 30 continuing operations1 Diluted earnings (loss) per share from - 0.01 --- discontinued operations1 Diluted earnings per share1 0.13 0.11 18 </pre> 1 The calculation for earnings per share is based on unrounded figures. "Our forecast has proved to be correct: revenue, earnings and margin all improved again in the third quarter, with all four segments making a positive contribution", stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "This is now our fifth consecutive quarter of year-on-year growth. Our strategy is proving successful and our investments are paying off." REVIEW OF GROUP FINANCIALS FOR THE THIRD QUARTER OF THE 2014 FISCAL YEAR Revenue for the Infineon Group grew by 6 percent from EUR1,051 million in the second quarter to EUR1,110 million in the third quarter of the 2014 fiscal year. Sales increased in all four operating segments. Due to revenue growth, Segment Result improved by 16 percent from EUR146 million in the preceding quarter to EUR170 million in the third quarter of the current fiscal year. The Segment Result Margin in the third quarter reached 15.3 percent, up from the 13.9 percent recorded in the second quarter. Income from continuing operations increased to EUR143 million in the third quarter, compared with EUR114 million in the previous three-month period. Income from discontinued operations was EUR0 million in the third quarter, compared with EUR10 million reported for the second quarter of the 2014 fiscal year. Third-quarter net income increased to EUR143 million, following the EUR124 million recorded in the previous quarter. Earnings per share (basic and diluted) increased from EUR0.11 in the second quarter to EUR0.13 in the third quarter. Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets, and capitalized development costs - amounted to EUR144 million in the third quarter and were thus slightly lower compared with the preceding quarter's figure of EUR154 million. Depreciation and amortization increased from EUR126 million in the second quarter to EUR131 million in the third quarter. Free cash flow from continuing operations continued to improve quarter-on-quarter, reaching EUR78 million in the third quarter. The equivalent figure for the second quarter of the 2014 fiscal year was EUR51 million, with the improvement resulting from a higher level of cash provided by operating activities, in combination with a slight reduction in the amount of investments. The gross cash position increased to EUR2,263 million at the end of the third quarter of the 2014 fiscal year, compared with EUR2,198 million three months earlier. The net cash position also improved from EUR2,010 million on March 31, 2014 to EUR2,073 million on June 30, 2014. OUTLOOK FOR THE FOURTH QUARTER AND THE 2014 FISCAL YEAR Infineon expects further growth in the fourth quarter of the 2014 fiscal year with an increase in revenue between 3 and 7 percent compared to the previous quarter. The Segment Result Margin is expected to be between 15 and 17 percent. Given the results for the first nine months and the outlook for the fourth quarter, the increase in revenue and the Segment Result Margin for the 2014 fiscal year are expected to be slightly above the previously indicated ranges (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 slightly above 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 July 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 third 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 Q3 Investor Presentation is available (in English only) at: http://www.infineon.com/cms/en/corporate/inve...index.html INFINEON FINANCIAL CALENDAR (*preliminary) - 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 - Jan 29, 2015* Earnings Release for the First Quarter of the 2015 Fiscal Year - Feb 12, 2015 Annual General Meeting 2015, Munich 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. --------------------------------------------------------------------- 30.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 --------------------------------------------------------------------- 279786 30.07.2014