Q1 FY 2020: revenue decline as predicted, Segment Result Margin developed positively, cost-reduction measures taking effect, outlook for 2020 fiscal year confirmed
February 05, 2020 at 02:24 am EST
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For the full version of this news release (incl. financial data), please download the PDF version.
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.'
For the full version of this news release (incl. financial data), please download the PDF version.
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Infineon Technologies AG published this content on 05 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 February 2020 07:23:11 UTC
Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).
Q1 FY 2020: revenue decline as predicted, Segment Result Margin developed positively, cost-reduction measures taking effect, outlook for 2020 fiscal year confirmed