Infineon Technologies AG OTCMKTS: IFNNY is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2018 fiscal year (ending 30 September), the Company reported sales of €7.6 billion with about 40.100 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-thecounter market OTCQX International Premier (ticker symbol: IFNNY).
Infineon Technologies AG OTCMKTS: IFNNY On 7 May 2019 report results for the second quarter of the 2019 fiscal year (period ended 31 March 2019).
“Infineon’s robust business model has enabled us to perform well during the second quarter, despite a significant slowdown of the market”, stated Dr. Reinhard Ploss, CEO of Infineon. “The boom is over for the time being, the momentum in demand has weakened. At the end of March, we responded to this trend by adjusting our outlook for the year and prepared for a lower level of growth. At the same time, we have acted consistently to successfully manage the current cycle and cut costs. We will continue to pursue strategic investment initiatives with the aim of safeguarding Infineon’s future. This is driven by the excellent long-term prospects in our key target markets, which include electro mobility, autonomous driving, renewable energy, data centers and mobile communications.”
In the second quarter of the 2019 fiscal year, revenue grew by 1 percent from EUR1,970 million to EUR1,983 million quarter-on-quarter. Revenue was up in the Automotive (ATV) and Digital Security Solutions (DSS) segments, marginally down in the Industrial Power Control (IPC) segment and somewhat more significantly down in the Power Management & Multimarket (PMM) segment.
The gross margin fell from 39.5 percent in the first quarter to 37.8 percent in the second. Included therein are acquisition-related depreciation and amortization as well as other expenses totaling EUR15 million, mainly relating to the International Rectifier acquisition. The adjusted gross margin came in at 38.5 percent, compared to 40.4 percent in the previous quarter. The second-quarter Segment Result amounted to EUR332 million, compared to the previous quarter’s EUR359 million. The Segment Result Margin dropped from 18.2 percent to 16.7 percent quarter-on-quarter.
The non-segment result for the three-month period was a net loss of EUR27 million, compared to a net loss of EUR32 million in the previous quarter. The second-quarter non-segment result comprises EUR15 million of cost of goods sold, EUR11 million of selling, general and administrative expenses, and EUR1 million of research and development expenses.
Operating profit in the second quarter of the 2019 fiscal year amounted to EUR305 million, compared to EUR327 million in the previous three-month period. Income tax expense for the second quarter decreased from EUR56 million to EUR46 million. Income from continuing operations remained about stable at EUR249 million in the second quarter, compared to EUR254 million one quarter earlier.
Due mainly to the adjustment of provisions in connection with the insolvency of Qimonda, the result from discontinued operations was a net loss of EUR18 million, compared to the break-even result in the previous quarter. Infineon assumes that proceedings relating to the alleged activation of a shell company and liability for impairment of capital are likely to be lengthier than so far anticipated. Net income for the second quarter of the current fiscal year amounted to EUR231 million, compared to EUR254 million in the previous quarter.
Quarter-on-quarter, earnings per share from continuing operations remained unchanged at EUR0.22 (basic and diluted). Similarly, adjusted earnings per share3 (diluted) were unchanged at EUR0.24