Infineon Technologies AG reported its results for the fourth quarter and the 2015 fiscal year, ended September 30, 2015. The Infineon Group's revenue edged up by EUR12 million or 1 percent to EUR1,598 million in the fourth quarter of the 2015 fiscal year, compared with EUR1,586 million in the previous quarter. The Industrial Power Control (IPC), Power Management & Multimarket (PMM), and Chip Card & Security (CCS) segments all contributed to revenue growth, whereas the Automotive (ATV) segment recorded a 1 percent decrease.
"The integration of International Rectifier has been a success. The fourth-quarter margin generated by the acquired business was already 15 percent and hence in line with Infineon's target for Segment Result Margin over the economic cycle. With that we have achieved our aim more than one year ahead of schedule," stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "We will achieve further growth in revenue, earnings and margin in the course of the current 2016 fiscal year."
The gross margin, which included depreciation and amortization related to the purchase price allocation of EUR17 million rose to 39.0 percent quarter-on-quarter. Gross margin in the preceding quarter was 34.8 percent.
Segment Result improved by 17 percent quarter-on-quarter from EUR245 million to EUR286 million in the fourth quarter. The fourth-quarter Segment Result Margin came in at 17.9 percent, compared to 15.4 percent in the preceding three-month period. The margin contributed by the businesses acquired in conjunction with the purchase of International Rectifier, including realized synergy benefits, has improved further since the transaction closed in January, reaching a level of 15 percent by the final quarter of the 2015 fiscal year. The fourth-quarter Segment Result Margin also benefited from a favorable product mix and positive currency factors on the cost side.
The non-segment result improved quarter-on-quarter from minus EUR126 million to minus EUR83 million in the fourth quarter of the 2015 fiscal year. The fourth-quarter figure includes EUR62 million recognized for depreciation and amortization related to the purchase price allocation and other acquisition related expenses. The total amount of EUR83 million comprises cost of goods sold (EUR28 million), research and development expenses (EUR5 million), selling, general and administrative expenses (EUR39 million) and other operating expenses (EUR11 million).
Operating income rose from EUR119 million in the third quarter of the 2015 fiscal year to EUR203 million in the fourth quarter. Income from continuing operations improved from EUR105 million to EUR322 million, while income from discontinued operations decreased from EUR4 million to EUR3 million.
Net income increased from EUR109 million in the third quarter to EUR325 million in the three-month period under report. Besides the significantly improved operating income figure, a net income tax benefit of EUR131 million recognized in the fourth quarter had a positive impact on net income. The tax benefit comprises income of EUR209 million resulting from the reversal of a valuation allowance on deferred tax assets, recognized in light of higher earnings expectations. Current tax for the 2015 fiscal year and tax effects related to prior fiscal years worked in the opposite direction.
Earnings per share (basic and diluted) increased from EUR0.10 in the third quarter 2015 to EUR0.29 in the fourth. Adjusted earnings per share (diluted) decreased quarter-on-quarter from EUR0.18 to EUR0.16 in the fourth quarter of the 2015 fiscal year. For the purposes of calculating adjusted earnings per share (diluted), a number of items were eliminated, most notably acquisition-related depreciation/amortization and other expenses (net of tax) as well as reversals of valuation allowances on deferred tax assets.
