DGAP-News: Infineon Technologies AG: INTERNATIONAL

DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Final Results Infineon Technologies AG: INTERNATIONAL RECTIFIER SUCCESSFULLY INTEGRATED WITH STRONG CONTRIBUTION TO EARNINGS 26.11.2015 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Q4 FY 2015: REVENUE OF EUR1,598 MILLION; SEGMENT RESULT EUR286 MILLION; SEGMENT RESULT MARGIN 17.9 PERCENT - INTERNATIONAL RECTIFIER'S FOURTH-QUARTER MARGIN ALREADY MEETS 15 PERCENT TARGET FOR SEGMENT RESULT MARGIN OVER ECONOMIC CYCLE - OUTLOOK FOR Q1 FY 2016: QUARTER-ON-QUARTER REVENUE DECREASE OF 6 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) DUE TO SEASONAL FACTORS, WITH SEGMENT RESULT MARGIN OF 14 PERCENT AT MID-POINT OF REVENUE RANGE - OUTLOOK FOR FY 2016: BASED ON AN ASSUMED AVERAGE EXCHANGE RATE OF US$1.10 TO THE EURO, YEAR-ON-YEAR REVENUE GROWTH OF 13 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS) AND SEGMENT RESULT MARGIN OF 16 PERCENT EXPECTED Neubiberg, Germany, November 26, 2015 - Infineon Technologies AG today reported its results for the fourth quarter and the 2015 fiscal year, ended September 30, 2015. <pre> in Euro million Q4 FY15 Q3 FY15 +/- in % Revenue 1,598 1,586 1 Segment Result 286 245 17 Segment Result Margin [in %] 17.9 15.4 +++ Income (loss) from continuing operations 322 105 (25) Income (loss) from discontinued operations, 3 4 net of income taxes Net income 325 109 +++ in Euro Basic earnings (loss) per share from 0.29 0.10 +++ continuing operations1 Basic earnings (loss) per share from - - discontinued operations1 Basic earnings per share1 0.29 0.10 +++ Diluted earnings (loss) per share from 0.29 0.10 +++ continuing operations1 Diluted earnings (loss) per share from - - discontinued operations1 Diluted earnings per share1 0.29 0.10 +++ Adjusted earnings per share diluted2 0.16 0.18 (11) </pre> 1 The calculation for earnings per share is based on unrounded figures. 2 The reconciliation of net income to adjusted net income and adjusted earnings per share can be found in the quarterly information at www.infineon.com. "The integration of International Rectifier has been a success. The fourth-quarter margin generated by the acquired business was already 15 percent and hence in line with Infineon's target for Segment Result Margin over the economic cycle. With that we have achieved our aim more than one year ahead of schedule," stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "We will achieve further growth in revenue, earnings and margin in the course of the current 2016 fiscal year." REVIEW OF GROUP FINANCIALS FOR THE FOURTH QUARTER OF THE 2015 FISCAL YEAR The Infineon Group's revenue edged up by EUR12 million or 1 percent to EUR1,598 million in the fourth quarter of the 2015 fiscal year, compared with EUR1,586 million in the previous quarter. The Industrial Power Control (IPC), Power Management & Multimarket (PMM), and Chip Card & Security (CCS) segments all contributed to revenue growth, whereas the Automotive (ATV) segment recorded a 1 percent decrease. The gross margin, which included depreciation and amortization related to the purchase price allocation of EUR17 million rose to 39.0 percent quarter-on-quarter. Gross margin in the preceding quarter was 34.8 percent. Segment Result improved by 17 percent quarter-on-quarter from EUR245 million to EUR286 million in the fourth quarter. The fourth-quarter Segment Result Margin came in at 17.9 percent, compared to 15.4 percent in the preceding three-month period. The margin contributed by the businesses acquired in conjunction with the purchase of International Rectifier, including realized synergy benefits, has improved further since the transaction closed in January, reaching a level of 15 percent by the final quarter of the 2015 fiscal year. The fourth-quarter Segment Result Margin also benefited from a favorable product mix and positive currency factors on the cost side. The non-segment result improved quarter-on-quarter from minus EUR126 million to minus EUR83 million in the fourth quarter of the 2015 fiscal year. The fourth-quarter figure includes EUR62 million recognized for depreciation and amortization related to the purchase price allocation and other acquisition related expenses. The total amount of EUR83 million comprises cost of goods sold (EUR28 million), research and development expenses (EUR5 million), selling, general and administrative expenses (EUR39 million) and other operating expenses (EUR11 million). Operating income rose from EUR119 million in the third quarter of the 2015 fiscal year to EUR203 million in the fourth quarter. Income from continuing operations improved from EUR105 million to EUR322 million, while income from discontinued operations decreased from EUR4 million to EUR3 million. Net income increased from EUR109 million in the third quarter to EUR325 million in the three-month period under report. Besides the significantly improved operating income figure, a net income tax benefit of EUR131 million recognized in the fourth quarter had a positive impact on net income. The tax benefit comprises income of EUR209 million resulting from the reversal of a valuation allowance on deferred tax assets, recognized in light of higher earnings expectations. Current tax for the 2015 fiscal year and tax effects related to prior fiscal years worked in the opposite direction. Earnings per share (basic and diluted) increased from EUR0.10 in the third quarter 2015 to EUR0.29 in the fourth. Adjusted earnings per share (diluted) decreased quarter-on-quarter from EUR0.18 to EUR0.16 in the fourth quarter of the 2015 fiscal year. For the purposes of calculating adjusted earnings per share (diluted), a number of items were eliminated, most notably acquisition-related depreciation/amortization and other expenses (net of tax) as well as reversals of valuation allowances on deferred tax assets. Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets - increased to EUR279 million in the fourth quarter, compared to EUR215 million in the preceding three-month period. Depreciation and amortization increased from EUR205 million to EUR211 million quarter-on-quarter. Free cash flow from continuing operations amounted to EUR177 million in the fourth quarter, compared to the third-quarter figure of EUR220 million. At EUR429 million, net cash provided by operating activities from continuing operations was more or less unchanged from the previous quarter's figure of EUR432 million. The gross cash position went up from EUR1,842 million at the end of the third quarter to EUR2,013 million at September 30, 2015. The net cash position improved over the same period from EUR49 million to EUR220 million. DIVIDEND FOR THE 2015 FISCAL YEAR: EUR0.20 PER SHARE Infineon's Management Board and Supervisory Board will propose at the Annual General Meeting, which will be held in Munich on February 18, 2016, that the dividend for the 2015 fiscal year be raised by EUR0.02 to EUR0.20. This proposed dividend increase follows the previous increase of EUR0.06 from EUR0.12 to EUR0.18. Infineon's stated objective is to pursue a dividend policy that enables shareholders to participate appropriately in growing earnings or, in times of flat or declining earnings and/or of negative free cash flows, to keep the dividend at least at a constant level. OUTLOOK FOR THE FIRST QUARTER OF 2016 FISCAL YEAR In the first quarter of the 2016 fiscal year, Infineon expects a quarter-on-quarter revenue decrease of 6 percent (plus or minus 2 percentage points) due to seasonal factors. This forecast is based on an assumed average exchange rate of US$1.10 to the euro. At the mid-point of the revenue range, the Segment Result Margin is expected to come in at approximately 14 percent. OUTLOOK FOR THE 2016 FISCAL YEAR Based on an assumed average exchange rate of US$1.10 to the euro, Infineon expects year-on-year revenue growth of around 13 percent (plus or minus 2 percentage points) and a Segment Result Margin of 16 percent at the mid-point of the range for the forecast revenue growth. The Power Management & Multimarket segment is expected to grow faster than the Group average. Revenue growth in the Industrial Power Control segment is forecast to be roughly in line with the Group average. The Automotive and Chip Card & Security segments are both expected to report growth below the Group average. The forecast includes the financial figures of International Rectifier for the full fiscal year. The results of operations for the 2015 fiscal year included figures for International Rectifier with effect from the closing of the acquisition on January 13, 2015. Investments in property, plant and equipment, intangible assets and capitalized development costs in the region of EUR850 million are planned for the 2016 fiscal year. The ratio for investments as a percentage of revenue (at the mid-point of the forecast range) is forecast at 13 percent. Depreciation and amortization are also expected to be in the region of EUR850 million. Infineon segments' performance in the fourth quarter and the 2015 fiscal year can be found in the quarterly information at www.infineon.com. All figures in this quarterly information are preliminary and unaudited. ANALYST TELEPHONE CONFERENCE AND PRESS CONFERENCE Infineon will host a telephone conference call for analysts and investors (in English only) on November 26, 2015 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the fourth quarter and the 2015 fiscal year. In addition, the Management Board will host a live press conference with the media at 11:00 am (CET), 5:00 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 Q4 Investor Presentation is available (in English only) at: www.infineon.com/cms/en/about-infineon/investor/reporting/ The 2015 annual report will be published on Thursday, November 26, 2015 at about 10.00 am (CET) on Infineon's website as well the website of Deutsche Börse. www.infineon.com/annualreport INFINEON FINANCIAL CALENDAR (*preliminary) - Dec 1 - 2, 2015 Credit Suisse TMT Conference, Phoenix/Arizona - Feb 2, 2016* Earnings Release for the First Quarter of the 2016 Fiscal Year - Feb 18, 2016 Annual General Meeting 2016, Munich - May 3, 2016* Earnings Release for the Second Quarter of the 2016 Fiscal Year - Aug 2, 2016* Earnings Release for the Third Quarter of the 2016 Fiscal Year - Nov 30, 2016* Earnings Release for the Fourth Quarter and 2016 Fiscal Year ABOUT INFINEON Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2015 fiscal year (ending September 30), the company reported sales of about Euro 5.8 billion with some 35,400 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). Further information is available at www.infineon.com This press release is available online at www.infineon.com/press Follow us: twitter.com/Infineon - facebook.com/Infineon - plus.google.com/+Infineon 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. Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. --------------------------------------------------------------------------- 26.11.2015 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 416369 26.11.2015