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© infineon Business | August 03, 2016

Automotive, Renewables and Power Conversion strong

Revenue of the Infineon Group increased from EUR 1,611 to 1,632 million QoQ. Contributions to this 1 percent revenue growth were made by the Automotive (ATV), Industrial Power Control (IPC) and Power Management & Multimarket (PMM) segments.
As expected, revenue reported by the Chip Card & Security (CCS) segment decreased slightly for the third quarter of its 2016 fiscal year (period ended June 30, 2016).

Operating income increased from EUR 174 million in the second quarter to EUR 193 million in the third quarter of the current fiscal year. Income from continuing operations totalled EUR 184 million, compared with EUR 177 million in the second quarter. Income from discontinued operations amounted to EUR 2 million, compared with EUR 3 million in the preceding quarter. Net income increased from EUR 180 million to 186 million quarter-on-quarter.

“Revenue, earnings and margin all increased in line with expectations in the third quarter. Demand was particularly strong for our automotive electronics, renewables and power supply solutions. Despite the current contraction of the semiconductor market and contrary to many of our competitors, Infineon has grown once again compared to the prior year’s corresponding quarter, reflecting its focus on sub-markets with structural growth. We therefore continue to forecast a long-term compound annual growth rate of 8 percent,” stated Dr. Reinhard Ploss, CEO of Infineon. “We are enabling cleaner and safer cars, greener energy and even faster mobile communication. The planned acquisition of Wolfspeed will secure us a decisive technological advantage in the long term and help us grow our system understanding. We are thereby focusing on promising growth areas such as electromobility and the Internet of Things.”

Outlook for the fourth quarter of the 2016 fiscal year

In the fourth quarter of the 2016 fiscal year, Infineon expects quarter-on-quarter revenue growth of 3 percent (plus or minus 2 percentage points). This forecast is based on an assumed exchange rate of US$1.10 to the euro. At the mid-point of the forecast revenue range, the Segment Result Margin is expected to come in at 17 percent.

Outlook for the 2016 fiscal year

Based on the outlook for the fourth quarter, revenue growth and Segment Result Margin for the full 2016 fiscal year are expected to end up within the range forecast in the preceding quarters.
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