Infineon posts solid first-quarter profit, slightly raises outlook for fiscal 2023 due to currency effects

Infineon posts solid first-quarter profit, slightly raises outlook for fiscal 2023 due to currency effects

[February 3, 2023, Neubiberg, Germany] Infineon Technologies AG released its financial report for the first quarter of fiscal year 2023 (as of December 31, 2022).

• First quarter of fiscal year 2023: Revenue reached 3.951 billion euros, profit reached 1.107 billion euros, and profit margin was 28%

• Outlook for the second quarter of fiscal 2023: Assuming a euro-dollar exchange rate of 1:1.05, revenue is expected to reach approximately 3.9 billion euros, and on this basis, profit margins are expected to be around 25%

• Outlook for fiscal year 2023: Even assuming an exchange rate of EUR/USD of 1:1.05 (previously 1:1.00), Infineon's revenue in fiscal year 2023 is still expected to reach approximately 15.5 billion euros (± 500 million euros). If revenue is at the midpoint of the forecast range, adjusted gross margin is expected to be around 45%, with margins in the mid-25% range (previously expected margins to be around 24%). Investments are still expected to reach approximately 3 billion euros. Taking into account the planned expansion of the front-end plant, free cash flow is expected to be approximately 800 million euros, and adjusted free cash flow is approximately 1.5 billion euros.

Jochen Hanebeck, CEO of Infineon Technologies , said: "In the face of challenges and changes, Infineon has made steady progress. We achieved very impressive profits in the first quarter of fiscal year 2023. Even in the weakening macroeconomic situation Many of our businesses are still performing strongly, especially driven by the energy transition and the development of electric transportation. The demand for our semiconductor solutions for industrial and automotive applications has remained high. At the same time, we also see smartphones, personal products, and mobile phones. Demand in areas such as computers and data centers has weakened significantly. During this challenging period, we will continue to remain cautious and adapt to market dynamics. In addition, we have slightly raised our outlook for fiscal 2023 due to currency effects."