Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Electronics Production | April 23, 2008

Infineon posts big loss

Infineon has reported results for the second quarter of the 2008 fiscal year, ended March 31, 2008. As of March 31, 2008, the financial reports of Infineon will focus on the ongoing operations of the company while at the same time setting the foundation for the comparability of its performance going forward.
The assets and liabilities of Qimonda have been reclassified as held for sale in the condensed consolidated balance sheets, and the individual line items in the condensed consolidated statements of operations reflect the results of Infineon’s segments other than Qimonda. The results of operations of Qimonda are reported in one line item titled “Income (loss) from discontinued operations”. In addition, earnings per share as well as the statements of cash flows differentiate between “continuing” and “discontinued” operations. Following this reclassification, the investment in Qimonda has been reduced to its current fair value less costs to sale, resulting in a write-down of Euro 1.004 billion, which was recorded in “Income (loss) from discontinued operations” in the second quarter of the current fiscal year.

Infineon’s revenues in the second quarter of the 2008 fiscal year were Euro 1.049 billion, down four percent sequentially and up seven percent year-over-year. The sequential decline reflects primarily negative revenue seasonality in the Communication Solutions segment. Excluding effects from currency fluctuations, primarily between the U.S. dollar and the Euro, and acquisitions and divestitures, revenues declined two percent sequentially and rose ten percent year-over-year.

Infineon EBIT was Euro 36 million in the second quarter, down from Euro 65 million in the prior quarter. Infineon EBIT in the second quarter included net charges of Euro 8 million, mainly in connection with restructuring, and Euro 5 million for the amortization of acquisition-related intangible assets related mainly to the business acquired from LSI. Infineon EBIT in the first quarter included a net gain of Euro 11 million, and Euro 9 million of such amortization expenses. For additional detail on net gains and charges included in the Infineon EBIT, please see the table on page 9 of this release. Net income from continuing operations for the second quarter was Euro 19 million, translating into basic and diluted earnings per share of Euro 0.03. For the first quarter, net income from continuing operations was Euro 45 million, basic and diluted earnings per share were Euro 0.06.

The net loss from discontinued operations was Euro 1.390 billion for the second quarter. This loss included Infineon’s share in Qimonda’s net loss of Euro 482 million, as well as a charge of Euro 1.004 billion from the write-down of the carrying value of Infineon’s interest in Qimonda to its estimated fair value. Basic and diluted loss per share from discontinued operations was Euro 1.85.
Ad
Ad
Ad
Ad
Load more news
November 15 2018 5:25 pm V11.9.0-1