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Infineon Technologies Revenue for Q1 2021 increased from €2,490 million to €2,631 million quarter-on-quarter

Infineon Technologies AG is reporting its results for the first quarter of the 2021 fiscal year (period ended 31 December 2020).

Revenue for the three-month period increased from €2,490 million to €2,631 million quarter-on-quarter, with all segments contributing to the 6 percent growth despite the weaker US dollar. Revenue grew particularly strongly in the Automotive (ATV) segment. The Industrial Power Control (IPC) and Power & Sensor Systems (PSS) segments also recorded marked increases, while the Connected Secure Systems (CSS) saw a slight improvement compared to the previous quarter.

Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of between €2.5 billion and €2.8 billion in the second quarter of the 2021 fiscal year. Revenue generated by the ATV and PSS segments is predicted to grow by a low-single digit percentage compared to the previous quarter.

Revenue in IPC is expected to remain at a similar level to the previous quarter while revenue of the CSS segment should see a low-single digit percentage decline quarter-on-quarter. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 16.5 percent.

Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of around €10.8 billion (plus or minus 5 percent) in the 2021 fiscal year. Particularly for the ATV and PSS segments, revenue is expected to grow during the second half of the fiscal year, driven by continued market momentum. At the mid-point of the guided revenue range the Segment Result Margin is expected to come in at about 17.5 percent.

Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, possible restrictions on economic activities, effects on production and supply chains and the level and effectiveness of governmental stimulus programs.

Revenue generated by the ATV segment during the three-month period rose from €1,045 million to €1,150 million quarter-on-quarter, with all lines of business contributing to the 10 percent growth. Demand for components for electric vehicles was particularly brisk. Due to a significant reduction of underutilization costs and positive non-recurring effects the Segment Result improved from €59 million in the previous quarter to €185 million for the first three months of the 2021 fiscal year. The Segment Result Margin jumped from 5.6 percent to 16.1 percent.

Source: www.infineon.com

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