Q3 2024 Infineon Technologies AG Earnings Call Transcript
Key Points
- Infineon Technologies AG (IFNNF) reported a slight sequential improvement in revenue and segment results in the second half of the fiscal year.
- The company confirmed its full-year outlook to be within the previously guided range, demonstrating resilience in a down cycle.
- Significant traction in the AI power franchise, with expectations to double business next year and cross the EUR1 billion revenue mark within two to three years.
- Opening of the Kulim 3 facility for silicon carbide power devices, positioning Infineon as a cost-competitive leader in the market.
- The step-up program aimed at improving profitability is on track, expected to deliver a high triple-digit million euro margin improvement by the first half of fiscal 2027.
- The cyclical bottoming process is continuing across many target markets, indicating ongoing market challenges.
- Some shipments corresponding to a mid-double-digit million euro amount missed the quarterly cutoff, affecting the sequential uptick in revenue.
- Idle charges are increasing, impacting the segment result margin despite higher revenue and better cost performance.
- Visibility over and beyond around a quarter is limited, creating uncertainty in sales outcomes.
- Inventory levels remain elevated, and customers are ordering inside lead times, leading to more turns business and non-linearity in sales outcomes.
Good morning, everyone. Welcome to the conference call for analysts and investors for Infinion's 2024 fiscal third quarter results. Today's call will be hosted by Alexander Foltin, Executive Vice President, Finance and Treasury and Investor Relations at Infinion Technologies.
As a reminder, this call conference call contains forward-looking statements and or assessments of our business, financial conditions, performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectations resting upon currently available information and present estimates.
They are subject to a multitude of uncertainties and risks, many of which are partially or entirely beyond Infineon's actual business development, financial condition, performance, and strategy may therefore differ materially from what is discussed in this conference.
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. At this time, I would like to turn the call over to Infineon. Please go ahead
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