Dr. Reinhard Ploss, CEO, Infineon Technologies: Registering encouraging Q4 2020 financial results
Germany’s Infineon Technologies has come out with its financial reports for the 4th Quarter of 2020 fiscal year – ending on 30th September 2020 – indicating optimistic trends. The revenue for the said three-months period increased to €2.49 Billion from €2.174 Billion quarter-on-quarter.
For the first time, the figure includes a full quarter’s contribution from Cypress Semiconductor Corporation, which Infineon acquired in April. The Automotive (ATV) and Power & Sensor Systems (PSS) segments were the main contributors to the 15 percent quarter-on-quarter growth in Group revenue. Revenue in the Connected Secure Systems (CSS) segment also increased slightly. The Industrial Power Control (IPC) segment recorded lower revenue than in the preceding three-month period.
Dr. Reinhard Ploss, CEO, Infineon Technologies, says, “Infineon has successfully completed an exceptional and difficult fiscal year with a very respectable fourth quarter. We’ve proven that our company has a robust business model and continues to develop steadily, even in uncertain times”. He says that some of his company’s target markets, especially the automotive sector, have recovered better than expected since the summer. In addition, the structural transformation towards electro mobility is accelerating, particularly in Europe. Other markets are showing weakness, like traction or government identification, or are still a long way from recovery, such as factory automation.
“All in all, we’re cautiously optimistic for the fiscal year that has just begun. However, the coronavirus pandemic, the geopolitical situation and prevailing macroeconomic conditions all remain challenging. The combination of a strengthened team and a broader technology and product portfolio – especially through connectivity for the IoT and other digital applications – enables us to address an even greater number of markets. We are in an excellent position to master future challenges”, elaborates Dr. Ploss.
Outlook for 2021 Fiscal Year
Based on an assumed exchange rate of US$ 1.15 to the euro, Infineon expects to generate revenue between €2.4 and €2.7 Billion in the first quarter of the 2021 fiscal year. The ATV segment revenue is forecast to increase by a mid-double-digit million euro amount quarter-on-quarter. Revenue generated by the IPC, PSS and CSS segments is in each case expected to remain at a similar level to the previous quarter. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 16 percent.
With regard to 2021 fiscal year, the company expects to generate revenue of around €10.5 Billion. The forecast includes Cypress figures for the first time for a full fiscal year. At the mid-point of the guided revenue range, year-on-year revenue would then increase by around €2 billion. The ATV segment is expected to contribute more than 50 percent to this revenue growth. The PSS and CSS segments are forecast to contribute the remaining part of the additional revenue growth with an equal share each. IPC revenue is expected to increase slightly. At the mid-point of the guided revenue range the Segment Result Margin is expected to come in at about 16.5 percent.
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