Infineon Reports Strong Performance in June 2023 Quarter

Infineon Technologies AG is reporting results for the third quarter of its 2023 fiscal year, ended June 30, 2023.

“We have strongly performed in the past quarter, while Semiconductor market trends continue to present a mixed picture with both light and shade,” said Jochen Hanebeck, CEO of Infineon. “On the one hand, in electromobility, renewable energy and related application areas, demand has stayed high. On the other hand, demand for consumer applications, such as PCs and smartphones remains low. Infineon is performing well in this challenging market environment thanks to its persistent focus on structural growth drivers for the digital transformation and the transition to a green economy. This is why we take a forward-looking long-term approach and are investing in additional manufacturing capacity.”

In the third quarter of the 2023 fiscal year, group revenue was €4,089 million. Compared with revenue in the prior quarter of €4,119 million, this was a decrease of 1% corresponding to the slight decline in the US dollar in comparison with the second quarter. Revenue in the Automotive (ATV) and Green Industrial Power (GIP) segments increased slightly. In the Power & Sensor Systems (PSS) segment, revenue decreased slightly, while revenue in the Connected Secure Systems (CSS) segment declined somewhat faster.

The gross margin in the third quarter of the current fiscal year was 44.5%, compared with 46.6% in the prior quarter. The adjusted gross margin was 46.2%, compared with 48.6% in the prior quarter.

Free cash flow improved in the third quarter of the current fiscal year to €326 million from €193 million in the prior quarter. Cash flow from operating activities rose to €1,033 million from €647 million in the second quarter of the 2023 fiscal year.