Infineon provides update on its outlook

According to preliminary results for the quarter ended September 30, 2011, sales of Euro 1.038 billion came in essentially flat with the previous quarter. Total Segment Result stood at Euro 195 million, down from Euro 212 million in the third quarter of the 2011 fiscal year. The company’s guidance given on July 28, 2011 called for at least flat turnover and for broadly unchanged Total Segment Result relative to the third quarter of the 2011 fiscal year.

“In an increasingly challenging market environment we are holding up well operationally as compared to our peers in the last quarter. We closed an excellent financial year at all time high revenues and margins", says Peter Bauer, CEO of Infineon Technologies AG.

Economic uncertainty in light of the European debt crisis and resulting financial market turmoil drove increasing caution on the part of Infineon’s customers over the course of the quarter. As a result, Infineon was not able to record revenue growth for the quarter. In addition, service agreements expired, under which Infineon provided services for its former wireless mobile phone business. Both factors combined caused the sequential decline in Segment Result. For the first quarter of the 2012 fiscal year, whilst demand in the automotive markets should remain benign, Infineon expects customer caution to characterize business in the Industrial & Multimarket and now also Chip Card & Security end markets. In total, Infineon anticipates a mid to high single-digit percentage sequential revenue decline at a mid teens percentage for Total Segment Result margin. Finally, Infineon Technologies AG today announces that it has taken additional provisions within its result from discontinued operations totaling Euro 150 million in connection with the insolvency proceedings of its subsidiary Qimonda AG. These provisions were taken after the insolvency administrator had detailed several claims during the last quarter.