Infineon concludes profitable Q1
"Infineon is staying on course in choppy waters," says Jochen Hanebeck, CEO of Infineon
Infineon has concluded a profitable Q1 of 2023 with a group revenue of €3.951 billion, with a Q2 outlook of around €3.9 billion.
Group revenue of €3.951 million was 5 percent down on the prior quarter of €4.143 million. Revenue fell in the Automotive (ATV), Industrial Power Control (IPC) and Power & Sensor Systems (PSS) segments, but grew in the Connected Secure Systems (CSS) segment.
The somewhat weaker US dollar compared with the prior quarter had a slightly adverse impact on revenue, according to the company. The gross margin rose in the first quarter of the current fiscal year to 47.2 percent, from 44.4 percent in the preceding quarter. The adjusted gross margin also improved, from 46.3 percent in the fourth quarter of the 2022 fiscal year to 49.2 percent in the current quarter.
"Infineon is staying on course in choppy waters, and the first quarter of our 2023 fiscal year has been very profitable. Substantial parts of our business have proved robust even in a weaker macroeconomic environment," says Jochen Hanebeck, CEO of Infineon (pictured above).
"In particular, the energy transition and expansion of electromobility are causing a continuously high need for our solutions in industrial and automotive applications. In contrast, we are seeing significantly weaker demand in areas such as smartphones, PCs and data centers. We are continuing to navigate carefully in these challenging times and remain flexible in our approach to market dynamics. All in all, we are increasing our guidance slightly for the fiscal year, adjusting for currency effects."
Infineon anticipates annual revenues of around €15.5 billion (plus or minus €500 million), with an adjusted gross margin of around 45 percent.
Investments are still expected to amount to approximately €3.0 billion. Taking the planned investments in frontend buildings into account, Infineon continues to expect Free Cash Flow of around €0.8 billion and adjusted Free Cash Flow of around €1.5 billion.