Infineon Prepares for Disposal and Deconsolidation of Qimonda - Investment reclassified into “Assets Held for Sale“- Write-down of Euro 1 Billion
Neubiberg, Germany – April 21, 2008 – Infineon Technologies AG, Neubiberg, continues to prepare for the disposal und resulting deconsolidation of its investment in Qimonda AG, Munich, and takes the next step in this direction. The Infineon Audit Committee reaffirmed today the decision to reclassify the assets and liabilities of Qimonda into “Assets Held for Sale” in the consolidated balance sheet of Infineon as of March 31, 2008. The quarterly results of Infineon Technologies AG which is scheduled to be announced on April 23, 2008 will include this presentation.
As a result of this presentation, the individual line items in the Consolidated Statement of Operations of Infineon will reflect the results of Infineon’s segments other than Qimonda. The results of operations of Qimonda will be reported in one line item titled “Income (Loss) from Discontinued Operations”. Going forward, earnings per share as well as the Statement of Cash Flows will differentiate between “continuing” and “discontinued” operations. Accordingly, the financial reports will now focus on the ongoing operations of the company while at the same time setting the foundation for the comparability of its performance.
Following this reclassification, and in contemplation of its planned disposal and resulting deconsolidation, the investment in Qimonda was reduced to its current fair value. The difference between the carrying value and the current fair value resulted in a write-down of Euro 1 billion, which will be recorded in “Income (Loss) from Discontinued Operations” in the second quarter of the current fiscal year. The existing guidance on Ebit development for Infineon excluding Qimonda for the second quarter of fiscal year 2008 and for the complete fiscal year 2008 remains unchanged.
Infineon has repeatedly communicated its goal of reducing its investment in Qimonda below 50% by no later than the 2009 Annual Meeting of Shareholders and is currently evaluating its different alternatives. Infineon currently holds a 77.47% interest in Qimonda.
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2007 fiscal year (ending September), the company reported sales of Euro 7.7 billion (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 employees worldwide (including approximately 13,500 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX).