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IFX - Infineon Technologies AG News Story

€31.37 -0.9  -2.7%

Last Trade - 06/05/21

Sector
Technology
Size
Large Cap
Market Cap £36.22bn
Enterprise Value £39.44bn
Revenue £8.63bn
Position in Universe 34th / 1049

BRIEF-Infineon Posts Q3 Operating Loss, Confirms Full-Year Outlook

Tue 4th August, 2020 6:45am
Aug 4 (Reuters) - Infineon Technologies AG  IFXGn.DE :
    * DGAP-NEWS: INFINEON TECHNOLOGIES AG: INFINEON'S
THIRD-QUARTER
FIGURES INCLUDE CYPRESS FOR FIRST TIME; ROBUST PROFITABILITY,
FULL-YEAR OUTLOOK CONFIRMED
    * Q3 OPERATING LOSS -93 MILLION EUR
    * Q3 FY 2020: REVENUE OF EUR 2,174 MILLION; SEGMENT RESULT
EUR 220
MILLION; SEGMENT RESULT MARGIN 10.1 PERCENT
    * CYPRESS CONSOLIDATED SINCE CLOSING OF ACQUISITION ON 16
APRIL
2020. PRELIMINARY PURCHASE PRICE ALLOCATION GIVES RISE TO
GOODWILL OF ABOUT EUR 5.5 BILLION- OUTLO
    * OUTLOOK FOR FY 2020: ASSUMING REVENUE IN Q4 FINISHES AT
MIDPOINT
OF GUIDED RANGE, REVENUE FOR FULL FISCAL YEAR 2020 WILL BE
AROUND EUR 8.5 BILLION. AT THIS LEVEL, SEGMENT RESULT MARGIN IS
EXPECTED TO COME IN AT ABOUT 13 PERCENT
    * OUTLOOK FOR Q4 FY 2020: BASED ON AN ASSUMED EXCHANGE RATE
OF US$
1.15 TO EURO, REVENUE OF BETWEEN EUR 2.3 BILLION AND EUR 2.6
BILLION IS EXPECTED. AT MIDPOINT OF GUIDED REVENUE RANGE, A
SEGMENT RESULT MARGIN OF ABOUT 14 PERCENT IS PREDICTED
    * PANDEMIC CONTINUES TO HAVE A SIGNIFICANT IMPACT ON OUR
TARGET
MARKETS, RESULTING IN WEAKER DEMAND IN MANY PRODUCT AREAS
    * THANKFULLY, WE ARE SEEING CONCRETE SIGNS OF RECOVERY
WITHIN
AUTOMOTIVE SECTOR, WHICH HAS BEEN PARTICULARLY HARD HIT
    * INFINEON IS ALSO BENEFITTING FROM INCREASED DIGITIZATION
THROUGH
GROWING VOLUME OF DATA TRAFFIC, INTERNET OF THINGS AND MOBILE
COMMUNICATION
    * OUR OUTLOOK FOR FINAL QUARTER OF FISCAL YEAR IS CAUTIOUSLY
OPTIMISTIC
    * OUR BUSINESS PERFORMANCE IS HIGHLY DEPENDENT ON HOW
CORONAVIRUS
PANDEMIC CONTINUES TO UNFOLD WORLDWIDE, ON IMPACT OF ECONOMIC
STIMULUS PACKAGES THAT HAVE BEEN IMPLEMENTED, AND ON A VARIETY
OF GEOPOLITICAL FACTORS
    * IN CURRENT FISCAL YEAR TO DATE, FREE CASH FLOW HAS ALREADY
BEEN
SIGNIFICANTLY IMPACTED BY ACQUISITION OF CYPRESS AS WELL AS
ECONOMIC CONSEQUENCES OF CORONAVIRUS PANDEMIC AND IS EXPECTED TO
BE SIGNIFICANTLY NEGATIVE FOR FISCAL YEAR AS A WHOLE
    * HOWEVER, EXCLUDING CASH USED IN CONNECTION WITH
ACQUISITION OF
CYPRESS, ORGANIC FREE CASH FLOW IS EXPECTED TO REACH A POSITIVE
VALUE OF MORE THAN EUR 600 MILLION
    * INVESTMENTS IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE
ASSETS
AND CAPITALIZED DEVELOPMENT COSTS IN REGION OF EUR 1.2 BILLION
ARE PLANNED FOR 2020 FISCAL YEAR
    * DEPRECIATION AND AMORTIZATION WILL AMOUNT TO APPROXIMATELY
EUR
1.3 BILLION, INCLUDING EFFECTS OF PRELIMINARY PURCHASE PRICE
ALLOCATION FOR CYPRES
    * ECONOMIC UPHEAVAL CAUSED BY GEOPOLITICAL FACTORS AND
CORONAVIRUS
PANDEMIC MAKES RELIABLE PREDICTIONS MORE DIFFICULT
    * ROCEEDS FROM SHARE CAPITAL INCREASE AND FROM ISSUANCE OF
NOTES
WERE UTILIZED TO ALREADY FULLY REPAY ORIGINAL BRIDGE FINANCING
TAKEN OUT TO PAY PURCHASE PRICE FOR CYPRESS.
    * FOR Q3 OF CURRENT FISCAL YEAR, INFINEON REPORTS NEGATIVE
EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF EUR 0.11 (BASIC
AND DILUTED), COMPARED TO POSITIVE EARNINGS PER SHARE OF EUR
0.13 IN PREVIOUS QUARTER
    * INCOME/LOSS FROM CONTINUING OPERATIONS DETERIORATED FROM
AN
INCOME OF EUR 178 MILLION IN Q2 TO A LOSS OF EUR 128 MILLION IN
Q3
    * IN Q3, INFINEON RECORDED AN OPERATING LOSS OF EUR 93
MILLION,
COMPARED TO AN OPERATING INCOME OF EUR 226 MILLION IN PRECEDING
QUARTER

Further company coverage:  IFXGn.DE 

 (Reporting by Berlin Speed Desk)
 ((berlin.newsroom@thomsonreuters.com;))
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