Infineon Announces Q2 Results

MUNICH -- Infineon Technologies AG (FSE/NYSE: IFX), one of the world's leading semiconductor manufacturers, today announced results for its second quarter of fiscal year 2002 ended March 31, 2002, with revenues of Euro 1.39 billion, an increase of 34 percent from the previous quarter and a decrease of 16 percent from the second quarter of fiscal year 2001. Revenues increased primarily as a result of improved market conditions, especially for memory products. In addition, demand improved for traditional telecom ICs, security and chip card ICs and ICs for automotive power applications. EBIT (earnings before interest and taxes) amounted to a loss of Euro 178 million, a significant improvement from a loss of Euro 564 million in the previous quarter but down from earnings of Euro 10 million in the second quarter of fiscal year 2001. The quarterly improvement in EBIT reflects an increase in demand in all business groups, a significant recovery in the price for memory products as well as the successful implementation of Infineon’s IMPACT cost savings program. Net loss amounted to Euro 108 million, a strong sequential improvement from a loss of Euro 331 million in the previous quarter but down from net income of Euro 23 million year-on-year. Net loss includes write downs of certain investments of Euro 12 million. Loss per share for the second quarter was Euro 0.16 compared with a loss per share of Euro 0.48 in the previous quarter and with earnings per share of Euro 0.04 in the second quarter of the last fiscal year. "Infineon’s revenue performance was driven by the overall improvement of demand in all business groups and a strong increase in prices for memory products. We were able to significantly reduce our net loss and further improve our cost position despite continued strong pricing pressure in automotive and communications," said Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. Infineon Technologies AG