Infineon Technologies reports results for the first quarter of the 2008 fiscal year ended December 31, 2007
(Business News, 25 Feb 2008 )
Infineon Technologies has reported results for the first quarter of the 2008 fiscal year ended December 31, 2007.
Revenues for Infineon excluding Qimonda in the first quarter of the 2008 fiscal year were Euro 1.09 billion, down three percent sequentially and up 14 percent year-overyear.
The sequential decline reflects higher revenues in the Communication Solutions segment and lower revenues in the Automotive, Industrial & Multimarket segment. Excluding effects from currency fluctuations, primarily between the U.S. dollar and the Euro, and acquisitions and divestitures, revenues for Infineon excluding Qimonda declined three percent s equentially and rose 15 percent year-over-year.
EBIT for Infineon excluding Qimonda was Euro 65 million in the first quarter, up from negative Euro 25 million in the prior quarter. EBIT in the first quarter included a net gain of Euro 11 million, reflecting a gain of Euro 28 million from the sale of part of the company’s interest in its high-power bipolar business , which was partly offset by charges of Euro 17 million, reflecting a write-off of acquired in-process research & development (R&D) of Euro 14 million rela ting to the mobile phone business acquired from LSI and restructuring expenses of Euro 3 million. Fourth quarter EBIT included net charges of Euro 94 million, mainly relating to the sale of Qimonda shares. For additional detail on net gains and charges included in the EBIT of Infineon excluding Qimonda, please see the table on page 10 of this release (found on the Company’s website). Also included in EBIT for the first quarter of the 2008 fiscal year were Euro 9 million for the amortization of acquisition-related intangible assets related mainly to the business acquired from LSI.
Results for the Infineon group for first quarter of 2008 fiscal year In the first quarter, Infineon reported group revenues of Euro 1.60 billion, net loss of Euro 396 million, EBIT of negative Euro 368 million, and basic and diluted loss per share of Euro 0.53.
Outlook for Infineon excluding Qimonda for second quarter of 2008 fiscal year For the second quarter of the 2008 fiscal year, Infineon expects revenues for its segments excluding Qimonda to decrease by a mid single-digit percentage compared to the first quarter. The company anticipates EBIT for its segments excluding Qimonda and before net gains or charges to decline from the prior quarter’s level, but to remain positive with low single-digit EBIT margin. In the second quarter, Infineon expects net gains or charges to b e insignificant.
Outlook for Infineon excluding Qimonda for 2008 fiscal year For the full year, Infineon maintains its outlook for the Automotive, Industrial and Multimarket segment: revenues and EBIT excluding net gains or charges are both expected to decline slightly from 2007 fiscal year levels. From the third quarter of the 2008 fiscal year onwards, Infineon expects revenues in the Communication Solutions segment to return to sequential growth. Despite the outlook for the current quarter, Infineon expects the full year to yield revenue growth for the Communication Solutions segment of 25 to 30 percent, with low to mid single -digit negative EBIT margin before net gains or charges . For its segments excluding Qimonda, Infineon currently expects revenues to increase by a high single-digit percentage year-on-year. EBIT for its segments excluding Qimonda and before net gains or charges in the 2008 fiscal year is anticipated to be positive with low to mid single-digit EBIT margin.
For more information, log on the Company’s Web site.
