Infineon reports 31 percent revenue jump
Earlier this year, Infineon's CEO Reinhard Ploss said the acquisition of International Rectifier (IR) had opened a new chapter in Infineon's history, moving it into the 'fast lane'. Reporting its Q2 results (the first since IR's lines of business have been included) Infineon has recorded a very positive 31 percent revenue boost of €355 million from €1,128 million to €1,483 million.
"Business was running very well, with additional tailwinds provided by the acquisition of International Rectifier and the strong dollar", stated Reinhard Ploss, CEO of Infineon Technologies AG.
He added: "The signals we are receiving from our markets are generally positive. We are making good progress with the integration of International Rectifier. Our strategy is paying off and Infineon remains on a growth path."
The acquisition of IR, which concluded on 13th January 2015, extends Infineon's compound semiconductor technology for power electronics. In recent years, Infineon has become a leading vendor of SIC power semiconductors. IR is a globally recognised specialist for chips based on GaN, a technology that was key to the acquisition.
The integration of IR into the Infineon is proceeding according to plan, according to the company. At the latest in fiscal year 2017, IR's margin contribution is expected to be at least in line with Infineon's target of 15 percent Segment Result margin over the cycle.
Sales have been integrated into one joint team since March. In addition, many key organizational changes have already been completed. Infineon has also started the optimization of the product portfolio. In March, the combined range of GaN products was presented at the US trade fair for power electronics - APEC 2015, for example.
Additionally, a comprehensive concept for the combined production network has been drawn up. The company will be discontinuing manufacturing operations at Techview in Singapore by the end of the year. Production in Newport, Wales, will be running at full capacity until the end of calendar year 2016 and will then be phased out in 2017. In parallel, the company is looking for a buyer to take over and continue to operate the factory.
Outlook
Based on an assumed exchange rate of US$ 1.10 to the euro, Infineon expects quarter- on-quarter revenue growth of between 7 and 11 percent in the third quarter of the 2015 fiscal year. All segments are forecast to make a contribution to the expected revenue growth. At the mid-point of the growth range, the Segment Result Margin is expected to be about 15 percent.
Based on an assumed exchange rate of US$ 1.10 (previously US$ 1.20) to the euro, Infineon forecasts year-on-year growth in revenue of 36 percent, plus or minus 2 percentage points. At the mid-point of the growth range, the Segment Result Margin is expected to be about 15 percent. All four operating segments will contribute to revenue growth. This outlook also includes IR's expected contribution to revenue in the period from January 13, 2015 to September 30, 2015.
