Infineon Technologies AG is reporting its results for the first quarter of the 2021 fiscal year (period ended 31 December 2020).
The Segment Result rose considerably from €379 million to €489 million, pushing up the Segment Result Margin for the quarter from 15.2 percent to 18.6 percent. In addition to a sharp decrease in underutilization costs, non-recurring items – such as research subsidies received and patent-related revenue – also contributed to the improvement.
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.
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.
IPC segment revenue rose from €349 million to €362 million, up 4 percent quarteron-quarter on the back of greater demand for renewables and home appliances.
Revenue remained at a similar level for industrial drives and decreased in transportation and power infrastructure. The Segment Result amounted to €61 million, down from the previous quarter’s €69 million, while the Segment Result Margin reached 16.9 percent after 19.8 percent in the previous quarter.
PSS segment revenue grew by 3 percent to €779 million in the first quarter, up from €759 million in the preceding three-month period. Revenue from sensors increased significantly, while demand for power semiconductors for server, PCs and laptops remained stable on a high level. The Segment Result for the first quarter of the current fiscal year amounted to €197 million, compared to €209 million in the final quarter of the previous fiscal year. The Segment Result Margin came in at 25.3 percent, down from 27.5 percent one quarter earlier.
CSS segment revenue went up by 1 percent from €333 million to €335 million quarter-on-quarter. Revenue increased in payment cards, microcontrollers and Wi-Fi, whereas demand for government identification and ticketing products declined induced by the crisis. The Segment Result improved from €42 million to €45 million quarter-on-quarter. The Segment Result Margin rose from 12.6 percent to 13.4 percent during the same period.
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