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© infineon Business | November 12, 2020

Infineon reports strong fourth quarter – cautiously optimistic about new fiscal year

For the first time, Infineon’s figures includes a full quarter’s contribution from Cypress Semiconductor, which the German company acquired back in April.

Revenue for the three-month period increased from EUR 2,174 million to EUR 2,490 million quarter-on-quarter. The company sys that the Automotive (ATV) and Power & Sensor Systems (PSS) segments were the main contributors to the 15% quarter-on-quarter growth in the groups revenue. Revenue in the Connected Secure Systems (CSS) segment also increased slightly. The Industrial Power Control (IPC) segment however recorded lower revenue than in the preceding quarter. Infineon’s gross margin improved from 27.0% in the third quarter to 31.8% in the fourth. And the operating income increased to EUR 182 million in the fourth quarter, compared to an operating loss of EUR 93 million during the third quarter. Fourth quarter net income totaled EUR 109 million, compared to a net loss of EUR 128 million in the third quarter. For the full year, Infineon’s revenue grew 7% YoY to EUR 8,567 million. “Infineon has successfully completed an exceptional and difficult fiscal year with a very respectable fourth quarter. We have proven that our company has a robust business model and continues to develop steadily, even in uncertain times,” says Dr. Reinhard Ploss, CEO of Infineon, in a press release. “Some of our target markets, especially the automotive sector, have recovered better than expected since the summer. In addition, the structural transformation towards electro mobility is accelerating, particularly in Europe. Other markets are showing weakness, like traction or government identification, or are still a long way from recovery, such as factory automation. All in all, we are cautiously optimistic for the fiscal year that has just begun. However, the coronavirus pandemic, the geopolitical situation and prevailing macroeconomic conditions all remain challenging,” the CEO continues. Moving into the new fiscal year Infineon expects to generate revenue between EUR 2.4 and EUR 2.7 billion in the first quarter of the 2021. However, the company says that geopolitical and macroeconomic factors as well as the economic disruption caused by the coronavirus pandemic makes accurate predictions difficult.
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November 27 2020 3:37 pm V18.13.10-2