INFINEON PROVIDES UPDATE ON ITS OUTLOOK AND ADDS TO PROVISIONS IN CONNECTION WITH QIMONDA INSOLVENCY PROCEEDINGS
11-10-14

Infineon Technologies AG  / Key word(s): Profit Warning

14.10.2011 13:31

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Neubiberg, October 14, 2011

Infineon Technologies AG today announces preliminary results for the fourth
quarter of the 2011 fiscal year, the outlook for the first quarter of the
2012 fiscal year and additional provisions relating to the insolvency of
its subsidiary Qimonda AG.

According to preliminary results for the quarter ended 30 September 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 28 July 2011 called for at least flat turnover and for
broadly unchanged Total Segment Result relative to the third quarter of the
2011 fiscal year.

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.

Infineon will provide additional detail on all above matters as well as the
outlook for the full 2012 fiscal year when it reports its final results for
the fourth quarter and the 2011 fiscal year on 16 November 2011.


14.10.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      Infineon Technologies AG
              Am Campeon 1-12
              85579 Neubiberg
              Germany
Phone:        +49 (0)89 234-26655
Fax:          +49 (0)89 234-955 2987
E-mail:       investor.relations@infineon.com
Internet:     www.infineon.com
ISIN:         DE0006231004
WKN:          623100
Indices:      DAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart;
              Terminbörse EUREX
 
End of Announcement                             DGAP News-Service
 
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