Infineon with strong Q4 and increased combined segment result margin

NEUBIBERG, GERMANY: Infineon Technologies AG announced that result and revenues for the fourth quarter of the 2010 fiscal year (ending September 30) will be better than expected.

For the fourth quarter of the current fiscal year, Infineon expects to see revenues rise sequentially by approximately 15 percent. In addition, Infineon sees Combined Segment Result margin of 18 to 20 percent for the quarter ending September 30, 2010.

The Wireless Solutions (WLS) division made a disproportionately higher contribution to the increase in guidance driven especially by higher than expected smart phone sales.

For the full 2010 fiscal year Infineon expects to see revenues rise by approximately 50 percent compared to the full 2009 fiscal year, and the Combined Segment Result margin to 13 to14 percent.

The above guidance is based on the overall Infineon business and includes the revenues and the Segment Result of the WLS division. When presenting the figures for the fourth quarter and fiscal year 2010 on November 16, however, the WLS business will then be reported as “discontinued operations” as a result of the proposed sale of the WLS business – the remaining business of Infineon will be presented as “continuing operations”.

For the first quarter of the 2011 fiscal year, Infineon expects revenues from the continuing operations excluding WLS to be at least on the same level as in the fourth quarter of the 2010 fiscal year excluding WLS.

In the forecast for the fourth quarter of the 2010 fiscal year that was published on July 28, 2010, Infineon expected revenues to grow sequentially by a high single-digit percentage. Segment Result margin was expected to grow by one or two percentage points.