Infineon with Strong Fourth Quarter and Increased Combined Segment Result Margin
Neubiberg, Germany – September 21, 2010 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today announced that result and revenues for the fourth quarter of the 2010 fiscal year (ending September 30) will be better than expected.
For the fourth quarter of the current fiscal year, Infineon expects to see revenues rise sequentially by approximately 15 percent. In addition, Infineon sees Combined Segment Result margin of 18 to 20 percent for the quarter ending September 30, 2010. The Wireless Solutions (WLS) division made a disproportionately higher contribution to the increase in guidance driven especially by higher than expected smart phone sales.
For the full 2010 fiscal year Infineon expects to see revenues rise by approximately 50 percent compared to the full 2009 fiscal year, and the Combined Segment Result margin to 13 to14 percent.
The above guidance is based on the overall Infineon business and includes the revenues and the Segment Result of the WLS division. When presenting the figures for the fourth quarter and fiscal year 2010 on November 16, however, the WLS business will then be reported as “discontinued operations” as a result of the proposed sale of the WLS business – the remaining business of Infineon will be presented as “continuing operations”.
For the first quarter of the 2011 fiscal year, Infineon expects revenues from the continuing operations excluding WLS to be at least on the same level as in the fourth quarter of the 2010 fiscal year excluding WLS.
In the forecast for the fourth quarter of the 2010 fiscal year that was published on July 28, 2010, Infineon expected revenues to grow sequentially by a high single-digit percentage. Segment Result margin was expected to grow by one or two percentage points.
D I S C L A I M E R
This press release includes forward-looking statements and assumptions about the future of Infineon’s business and the industry in which we operate. These include statements and assumptions relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our savings and growth targets, the resolution of Qimonda’s insolvency proceedings and the liabilities we may face as a result of Qimonda’s insolvency, the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, our ability to continue to offer commercially viable products, and our expected or projected future results.
These forward-looking statements are subject to a number of uncertainties, including broader economic developments, including the sustainability of recent improvements in the market environment; 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; 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 continued availability of adequate funds; 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 the “Risk Factors” section of our most recent annual report on Form 20-F on file with the U.S. Securities and Exchange Commission.
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, mobility, and security. In the 2009 fiscal year (ending September), the company reported sales of Euro 3.03 billion with approximately 25,650 employees worldwide. 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).