Infineon Reports Fourth Quarter and 2006 Financial Year Results
For the fourth quarter of the 2006 financial year, Infineon Technologies AG reported revenues of Euro 2.29 billion, up from Euro 1.97 billion in the third quarter. The increase reflected higher sales in all operating segments. Revenues of Infineon excluding Qimonda increased to Euro 1.06 billion from Euro 995 million in the prior quarter. The principal sales drivers in the Communication Solutions segment were seasonal effects and ramp-ups of products for new customers, while the Automotive, Industrial & Multimarket segment saw increased sales in the industrial and security & ASICs businesses.
Group EBIT in the fourth quarter decreased to Euro 30 million, down from Euro 49 million in the third quarter. The fourth quarter EBIT loss for Infineon excluding Qimonda was Euro 174 million, compared to an EBIT loss of Euro 51 million in the prior quarter. Included in fourth quarter EBIT excluding Qimonda were charges of Euro 164 million, mainly in connection with the IPO of Qimonda and the impact of the insolvency of BenQ Mobile's German subsidiary. The third quarter 2006 EBIT loss excluding Qimonda included charges of Euro 29 million, mainly relating to impairment and restructuring charges. Before these charges, the fourth quarter EBIT loss excluding Qimonda would have been Euro 11 million versus an EBIT loss of Euro 22 million in the previous quarter, driven by improved EBIT results in the Automotive, Industrial & Multimarket segment. Group net loss in the fourth quarter was Euro 36 million compared to a net loss of Euro 23 million in the prior quarter.
In the 2006 financial year, group revenues increased to Euro 7.93 billion, compared to Euro 6.76 billion in the 2005 financial year, reflecting higher sales at Qimonda and in the Automotive, Industrial & Multimarket segment. Group EBIT loss was Euro 15 million in the 2006 financial year, compared to an EBIT loss of Euro 183 million in the 2005 financial year, reflecting improved results in all operating segments. Included in the 2006 financial year group EBIT loss were charges of Euro 196 million, mainly resulting from the IPO of Qimonda, the insolvency of BenQ Mobile's German subsidiary, and impairment and restructuring charges. The EBIT loss in the 2005 financial year included net charges of Euro 104 million, primarily related to the planned phase-out of production at the company's Munich-Perlach facility and net charges resulting from the reorganization measures in the Communication Solutions segment, partially offset by non-recurring license income. Before these charges, group EBIT in the 2006 financial year would have been Euro 181 million versus a group EBIT loss of Euro 79 million in the 2005 financial year. Group net loss for the 2006 financial year narrowed to Euro 268 million, compared to a net loss of Euro 312 million in the prior year.
