Infineon Technologies raises guidance for third quarter financials
Neubiberg, Germany – June 25, 2009 – Infineon Technologies today raised the guidance for the third quarter of the 2009 fiscal year.
For the current third quarter of the 2009 fiscal year Infineon now expects a Combined Segment Result approaching break-even with revenues increasing by a low-teens percentage sequentially. In addition, Infineon anticipates free cash flow to be clearly positive and foresees a gross cash position approaching Euro 850 million for the end of the quarter.
When the company originally provided the market with an outlook for the third quarter of the 2009 fiscal year on 30 April 2009, Infineon expected revenues to increase by about 10 percent sequentially with a negative mid to high single digit Segment Result margin.
“Despite the adverse overall economic climate and the difficult semiconductor market environment, our Combined Segment Result should approach break-even. This improvement along with the favorable liquidity development are impressive evidence for the success of our operative performance, cost reduction and cash preservation measures”, said Peter Bauer, CEO of Infineon Technologies AG.
D I S C L A I M E R
This press release includes forward-looking statements about the future of Infineon's business and the industry in which we operate, including the company's expectations for results in the current quarter.
These forward-looking statements are subject to a number of uncertainties, including broader economic developments (including the pace and timing of any stabilization or improvement in the global economy); trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles and consumer electronics, that incorporate our products; our ability to manage our costs and to achieve our savings and growth targets; the success of our development efforts, both alone and with partners; the success of our efforts to introduce new production processes at our facilities; the actions of competitors; the availability of funds, including for the re-financing of our indebtedness; the outcome of antitrust investigations and litigation matters; and the outcome of Qimonda's insolvency proceedings; as well as the other factors mentioned in this press release and those described in Infineon's SEC reports, including the "Risk Factors" section of the annual report of Infineon on Form 20-F filed on December 29, 2008.
As a result, Infineon's actual results could differ materially from those contained in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.
Infineon does not undertake any obligation to publicly update or revise any forward-looking statements in light of developments which differ from those anticipated.
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide in continuing operations. 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 (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).