DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
- Q1 FY 2021: REVENUE €2,631 MILLION; SEGMENT RESULT €489 MILLION; SEGMENT RESULT MARGIN 18.6 PERCENT
- OUTLOOK FOR Q2 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO REVENUE BETWEEN €2.5 BILLION AND €2.8 BILLION PREDICTED. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN IS EXPECTED TO COME IN AT AROUND 16.5 PERCENT
- OUTLOOK FOR FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE OF AROUND €10.8 BILLION (PLUS OR MINUS 5 PERCENT). AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN IS PREDICTED TO COME IN AT AROUND 17.5 PERCENT. INVESTMENTS OF AROUND 1.6 BILLION ARE PLANNED. FREE CASH FLOW IS PREDICTED TO EXCEED €800 MILLION
Neubiberg, Germany, 4 February 2021 - Today, Infineon Technologies AG is reporting its results for the first quarter of the 2021 fiscal year (period ended 31 December 2020).
"Infineon has made a good start to the new fiscal year. Despite headwinds from a weak US dollar, we recorded significant increases in both revenue and earnings in the first quarter. In addition to the economic recovery in some regions, we continue to benefit from the digitalization push affecting all areas of life. Semiconductors are needed more than ever," said Dr. Reinhard Ploss, CEO of Infineon. "We are monitoring ongoing risks closely. Nevertheless, in view of dynamic ordering momentum and manufacturing plants running at good utilization rates in the majority of product areas, we are making a slight upward adjustment to our outlook for the full year. We are increasing our investments in manufacturing capacity and bringing forward the starting date for the new power semiconductor plant in Villach to the last quarter of the current fiscal year."
1 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.
2 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.
Infineon's gross margin rose from 31.8 percent in the previous three-month period to 37.4 percent in the first quarter of the current fiscal year. The adjusted gross margin improved from 36.6 percent to 40.3 percent quarter-on-quarter.
The Segment Result rose considerably from €379 million to €489 million, pushing up the Segment Result Margin for the quarter from 15.2 percent to 18.6 percent. In addition to a sharp decrease in underutilization costs, non-recurring items - such as research subsidies received and patent-related revenue - also contributed to the improvement.
The non-segment result for the three-month period was a net loss of €157 million, compared to a net loss of €197 million in the final quarter of the previous fiscal year. The negative effects from the acquisition and consolidation of Cypress, which are primarily related to the purchase price allocation, were lower than one quarter earlier, as expected. The non-segment result for the three-month period contained €75 million of cost of goods sold, €60 million of selling, general and administrative expenses and €8 million of research and development expenses. Net other operating expenses amounting to €14 million were also recorded in the first quarter.
Operating income rose from €182 million to €332 million quarter-on-quarter.
The financial result improved from negative €28 million to negative €26 million.
The tax expense for the three-month period amounted to €49 million, compared to €33 million one quarter earlier.
Income from continuing operations for the first quarter of the 2021 fiscal year increased to €256 million, up from the previous quarter's corresponding figure of €112 million. Income from discontinued operations in the first quarter was break-even, compared to a loss of €3 million in the preceding three-month period. Net income improved from €109 million to €256 million compared to the previous quarter.
Earnings per share from continuing operations improved from €0.08 (basic and diluted) to €0.19 quarter-on-quarter. Adjusted earnings per share3 (diluted) for the three-month period went up from €0.20 to €0.28.
Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - totaled €283 in the first quarter of the current fiscal year, compared with €332 million in the preceding three-month period. Depreciation and amortization decreased from €379 million to €368 million quarter-on-quarter.
Free cash flow generated totaled €313 million, down from €387 million one quarter earlier. Net cash provided by operating activities from continuing operations amounted to €588 million, compared to €747 million in the final quarter of the preceding fiscal year.
At the end of the first quarter of the 2021 fiscal year, the gross cash position stood at €3,334 million, compared to €3,227 million at 30 September 2020, while the net debt improved by €437 million from €3,806 million to €3,369 million. Financial debt was reduced from €7,033 to €6,703 million during the three-month period. In addition to the repayment of financial debt of €174 million, the decline in the value of the US dollar against the euro - and hence the lower amount of US dollar-denominated debt - had a positive effect.
OUTLOOK FOR THE SECOND QUARTER OF THE 2021 FISCAL YEAR
OUTLOOK FOR THE 2021 FISCAL YEAR
Investments in property, plant and equipment and other intangible assets, including capitalized development costs, are planned to be around €1.6 billion for the 2021 fiscal year. Depreciation and amortization are expected to amount to between €1.5 billion and €1.6 billion, of which approximately €500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent with the acquisition of International Rectifier. Free cash flow is predicted to exceed €800 million.
Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, possible restrictions on economic activities, effects on production and supply chains and the level and effectiveness of governmental stimulus programs.
Infineon's segments' performance in the first quarter of the 2021 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 TELEPHONE PRESS CONFERENCE
The Q1 Investor Presentation is available (in English only) at:
INFINEON FINANCIAL CALENDAR (* preliminary)
- 10 - 11 Feb 2021 Goldman Sachs Technology & Internet Conference,
- 25 Feb 2021 Annual General Meeting, Neubiberg (virtual)
- 1 Mar 2021 dbAccess ESG Engagement Day (virtual)
- 3 Mar 2021 CSS Call along with embedded World trade show, Nuremberg (virtual)
- 9 - 10 Mar 2021 UBS Technology One-on-One Virtual Conference, London (virtual)
- 11 Mar 2021 ODDO BHF 5th Digital TMT Forum (virtual)
- 24 Mar 2021 JPMorgan Fireside Chat (virtual)
- 4 May 2021* Earnings Release for the Second Quarter of the 2021
- 6 May 2021 IPC Call along with PCIM trade show, Nuremberg (virtual)
- 8 - 9 Jun 2021 23rd Exane BNP Paribas European CEO Conference,
- 10 Jun 2021 Bank of America Global Technology Conference, San Francisco (virtual)
- 17 Jun 2021 GS European Digital Economy Conference (virtual)
- 1 Jul 2021 PSS Call along with MWC trade show, Barcelona (virtual)
- 3 Aug 2021* Earnings Release for the Third Quarter of the 2021
D I S C L A I M E R
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.
04.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Infineon Technologies AG
Am Campeon 1-15
+49 (0)89 234-26655
+49 (0)89 234-955 2987
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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