Infineon Reports FY2002

Fiscal Year 2002 revenues were €5.21 billion, down 8 percent year-on-year, reflecting the ongoing difficult market environment

November 8, 2002

2 Min Read

MUNICH -- Infineon Technologies AG (FSE/NYSE: IFX), one of the world's leading semiconductor manufacturers, today announced results for its fiscal year 2002, ended September 30, with revenues of Euro 5.21 billion, a decrease of 8 percent from the previous fiscal year. The revenue decrease resulted from the overall sluggish semiconductor market with substantial pricing pressure in all business groups, especially Memory Products. However, Infineon’s Automotive & Industrial segment had its best quarterly and annual revenue performance ever. A 16 percent sales increase in memory products year-on-year was achieved with higher production volumes as a consequence of productivity and capacity increases as well as higher bit demand. These achievements were offset by a revenue decline in the communications and chipcard segments mainly due to the dramatic reduced capital spending of global telecommunication carriers, weak demand and strong overall pricing pressure.Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG: “Despite the unexpectedly long continuation of adverse market conditions, we improved revenues in all logic segments sequentially quarter by quarter during fiscal year 2002 and achieved profitability on an operating level in three business groups in the fourth quarter.“Wireline Communications revenues improved slightly to Euro 105 million in the fourth quarter, up 2 percent from the previous quarter, but down 26 percent year-on-year. The sequential revenue increase was due to increased sales of Infineon’s VDSL/10BaseS broadband access technology in Asia. EBIT improved to a loss of Euro 44 million from a loss of Euro 49 million in the previous quarter, and improved significantly from a loss of Euro 138 million in the fourth quarter of 2001. Revenues for fiscal year 2002 were Euro 386 million, down nearly 50 percent year-on-year, mainly due to the strong deterioration in infrastructure investments by global carriers in traditional telecom and fiber optics products. EBIT amounted to a loss of Euro 245 million, compared to a loss of Euro 93 million in 2001. Despite the difficult market environment Infineon strengthened its market position in the overall access market (both traditional and broadband segments) to No. 3 worldwide according to iSuppli and further build-up its market position as the leading vendor of next generation high-speed broadband access technology with major design-wins on ADSL (such as Alcatel) and VDSL/10BaseS in the Asian markets. For VDSL/10BaseS, Infineon positioned itself as the leading supplier with over 70 major vendors using this solution, including Huawei Technologies, ZyXEL, Sumitomo Electric, Allied Telesis KK and Telson.Infineon Technologies AG

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