02.15.24
Infineon Technologies AG is reporting results for the first quarter of the 2024 fiscal year, ending Dec. 31, 2023.
Infineon reported Q1 FY 2024 revenue of €3.702 billion, segment result €831 million, and segment result margin of 22.4%.
"In the prevailing difficult macroeconomic climate, Infineon is proving robust," says Jochen Hanebeck, CEO of Infineon. "In consumer, communication, computing and IoT applications, we are not anticipating a noticeable recovery in demand until the second half of the calendar year. Our expectations for the automotive sector remain virtually unchanged from November, despite a slowdown in demand in electromobility outside China.
“As a company, we are consistently adapting to this situation, so that we meet our financial targets for the current fiscal year,” Hanebeck added. “At the same time, we remain committed to our major investments for the future, as we want to exploit the long-term growth opportunities arising from decarbonization and digitalization."
Outlook for FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, (previously US$1.05), Infineon now expects to generate revenue of around €16 billion plus or minus €500 million, with a segment result margin in the low to mid-20% range at the mid-point of the guided revenue range.
Adjusted gross margin should be in the low to mid-40% range. Investments were now reduced to approximately €2.9 billion. Free cash flow adjusted for major investments in front-end buildings and the acquisition of GaN Systems should be around €1.8 billion and reported free cash flow around €200 million.
Outlook for Q2 FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, revenue of around €3.6 billion expected. On this basis, the segment result margin is forecast to be at about 18%.
Infineon reported Q1 FY 2024 revenue of €3.702 billion, segment result €831 million, and segment result margin of 22.4%.
"In the prevailing difficult macroeconomic climate, Infineon is proving robust," says Jochen Hanebeck, CEO of Infineon. "In consumer, communication, computing and IoT applications, we are not anticipating a noticeable recovery in demand until the second half of the calendar year. Our expectations for the automotive sector remain virtually unchanged from November, despite a slowdown in demand in electromobility outside China.
“As a company, we are consistently adapting to this situation, so that we meet our financial targets for the current fiscal year,” Hanebeck added. “At the same time, we remain committed to our major investments for the future, as we want to exploit the long-term growth opportunities arising from decarbonization and digitalization."
Outlook for FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, (previously US$1.05), Infineon now expects to generate revenue of around €16 billion plus or minus €500 million, with a segment result margin in the low to mid-20% range at the mid-point of the guided revenue range.
Adjusted gross margin should be in the low to mid-40% range. Investments were now reduced to approximately €2.9 billion. Free cash flow adjusted for major investments in front-end buildings and the acquisition of GaN Systems should be around €1.8 billion and reported free cash flow around €200 million.
Outlook for Q2 FY 2024: Based on an assumed exchange rate of US$1.10 to the euro, revenue of around €3.6 billion expected. On this basis, the segment result margin is forecast to be at about 18%.