DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast
- Q1 FY 2020: REVENUE OF €1,916 MILLION; SEGMENT RESULT OF €297 MILLION; SEGMENT RESULT MARGIN OF 15.5 PERCENT
- OUTLOOK FOR FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.13 TO THE EURO, REVENUE STILL EXPECTED TO GROW AT 5 PERCENT YEAR-ON-YEAR (PLUS OR MINUS 2 PERCENTAGE POINTS), WITH SEGMENT RESULT MARGIN OF ABOUT 16 PERCENT AT MID-POINT OF REVENUE GUIDANCE. INVESTMENTS OF AROUND 1.3 BILLION EUROS PLANNED. FREE CASH FLOW IN RANGE OF €500 TO €700 MILLION ANTICIPATED
- OUTLOOK FOR Q2 FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.13 TO THE EURO, QUARTER-ON-QUARTER REVENUE GROWTH OF 5 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS); SEGMENT RESULT MARGIN OF ABOUT 14 PERCENT PREDICTED AT MID-POINT OF REVENUE GUIDANCE
- CYPRESS ACQUISITION: TRANSACTION EXPECTED TO CLOSE TOWARDS THE END OF THE CURRENT QUARTER OR AT THE BEGINNING OF THE FOLLOWING QUARTER
Neubiberg, Germany, 5 February 2020 - Infineon Technologies AG is today reporting results for the first quarter of the 2020 fiscal year (period ended 31 December 2019).
"Our well-diversified business performed robustly at the beginning of the fiscal year. Under difficult conditions, revenue fell in line with expectations. Our cost reduction measures are beginning to take effect. Those measures and several non-recurring factors caused the Segment Result to come in slightly better than expected," said Dr. Reinhard Ploss, CEO of Infineon. "Demand for the latest generation of our silicon microphones is growing dynamically. We are also seeing signs of improvement in individual areas such as the server business. Overall, however, we do not expect to see a broad based recovery of demand before the second half of the fiscal year. Our long-term growth drivers remain intact and we are making a crucial contribution to shaping the future of mobility and energy efficiency."
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.
With effect from the beginning of 2020 fiscal year, Infineon is applying IFRS 16 (Leases) using the modified retrospective approach. As a result, prior periods are not adjusted to the new accounting policy. Overall, the first-time application of this Standard has not had any material impact.
The first-quarter non-segment result improved to a net loss of €31 million, compared to a net loss of €65 million for the previous three-month period. The first-quarter non-segment result included €18 million of cost of goods sold, €13 million of selling, general and administrative expenses and €1 million of research and development expenses. In addition, net other operating income amounting to €1 million arose in the first quarter.
Operating income increased from €246 million to €266 million quarter-on-quarter.
The financial result improved from a net expense of €18 million in the final quarter of the 2019 fiscal year to a net expense of €13 million in the first quarter of the 2020 fiscal year.
Income tax expense fell from €64 million to €43 million quarter-on-quarter.
Income from continuing operations amounted to €210 million, up from €163 million in the previous three-month period. Income from discontinued operations for the first quarter was nil, compared to a loss of €2 million reported for the final quarter of the previous fiscal year. Thus, first-quarter net income improved to €210 million, up from €161 million one quarter earlier.
Earnings per share from continuing operations for the period under report amounted to €0.16 (basic and diluted), compared to €0.13 in the previous quarter. First-quarter adjusted earnings per share3 (diluted) amounted to €0.17, down from €0.19 quarter-on-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 €255 million in the first quarter of the 2020 fiscal year, down from €350 million in the preceding three-month period. Depreciation and amortization increased slightly from €244 million to €250 million quarter-on-quarter. The figure for the first three months of the current fiscal year for the first time includes €13 million relating to the amortization of right-to-use assets following the adoption of IFRS 16, which governs the accounting treatment of leases.
First-quarter free cash flow from continuing operations was a negative amount of €86 million, compared to a positive amount of €334 million in the previous three-month period. Net cash provided by operating activities from continuing operations amounted to €183 million, down from €682 million in the final quarter of the 2019 fiscal year, with the €499 million decrease mainly attributable to the change in working capital and the payout of variable annual remuneration components.
The gross cash position increased from €3,779 million at 30 September 2019 to €4,859 million at the end of the first quarter of the 2020 fiscal year. The net cash position rose from €2,223 million to €3,328 million over the same period. The increase in cash positions mainly reflected the receipt of proceeds on 1 October 2019 arising from the issue of a hybrid bond with a nominal value of €1.2 billion to refinance the planned acquisition of Cypress.
OUTLOOK FOR THE 2020 FISCAL YEAR EXCLUDING CYPRESS
Investments in property, plant and equipment, intangible assets and capitalized development costs are planned at approximately €1.3 billion for the 2020 fiscal year. Of this amount, approximately one third relates to manufacturing buildings (including infrastructure) and office buildings. Depreciation and amortization are expected to be in the region of €1 billion, whereby approximately €60 million of that amount relates to amortization resulting from purchase price allocations, primarily for International Rectifier. Free cash flow is forecast to improve considerably year-on-year and reach an amount of between €500 million and €700 million.
This outlook is based on the assumption that the coronavirus outbreak will not have a significantly negative impact on the development of our business in the 2020 fiscal year.
EXPECTED DEVELOPMENT OF INFINEON GROUP INCLUDING CYPRESS IN THE 2020 FISCAL YEAR
3 Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.
Infineon's segments' performance in the first quarter and the 2020 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)
- 13 Feb 2020 Goldman Sachs Technology & Internet Conference, San Francisco
- 20 Feb 2020 Annual General Meeting, Munich
- 24 - 26 Feb 2020 Investor Meetings at Mobile World Congress, Barcelona
- 10 - 11 Mar 2020 UBS Technology One-on-One Conference, London
- 12 Mar 2020 ODDO BHF 4th TMT Forum, Paris
- 18 Mar 2020 Bernstein EV Conference, London
- 24 Mar 2020 JPMorgan Global ESG Conference, Paris
- 25 Mar 2020 Société Générale European ESG/SRI Conference, Paris
- 26 Mar 2020 Lampe Bank Deutschland Konferenz, Baden-Baden
- 5 May 2020* Earnings Release for the Second Quarter of the 2020
- 7 May 2020 Industrial Power Control Business Update at PCIM, Nuremberg
- 27 May 2020 Equita Conference 2020, Milan
- 3 - 4 Jun 2020 Deutsche Bank German, Swiss & Austrian Conference, Berlin
- 9 - 10 Jun 2020 Exane 22nd European CEO Conference, Paris
- 4 Aug 2020* Earnings Release for the Third Quarter of the 2020
- 21 Sep 2020 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim (nearby Munich)
- 22 Sep 2020 Baader Investment Conference, Munich
- 6 Oct 2020 Automotive Call
- 9 Nov 2020* Earnings Release for the Fourth Quarter and the 2020
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.
Bernd Hops, Media Relations, phone: +49 89 234-24123, fax: +49 89 234-154123
|Company:||Infineon Technologies AG|
|Am Campeon 1-15|
|Phone:||+49 (0)89 234-26655|
|Fax:||+49 (0)89 234-955 2987|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||967487|
|End of News||DGAP News Service|