DGAP-News

Infineon Technologies AG: Q3 FY14: INFINEON CONTINUES ON ITS GROWTH TRACK - Seite 2

million in the preceding quarter to EUR170 million in the third quarter of
the current fiscal year. The Segment Result Margin in the third quarter
reached 15.3 percent, up from the 13.9 percent recorded in the second
quarter.

Income from continuing operations increased to EUR143 million in the third
quarter, compared with EUR114 million in the previous three-month period.
Income from discontinued operations was EUR0 million in the third quarter,
compared with EUR10 million reported for the second quarter of the 2014
fiscal year.

Third-quarter net income increased to EUR143 million, following the EUR124
million recorded in the previous quarter. Earnings per share (basic and
diluted) increased from EUR0.11 in the second quarter to EUR0.13 in the
third quarter.

Investments - which Infineon defines as the sum of purchases of property,
plant and equipment, purchases of intangible assets, and capitalized
development costs - amounted to EUR144 million in the third quarter and
were thus slightly lower compared with the preceding quarter's figure of
EUR154 million. Depreciation and amortization increased from EUR126 million
in the second quarter to EUR131 million in the third quarter.

Free cash flow from continuing operations continued to improve
quarter-on-quarter, reaching EUR78 million in the third quarter. The
equivalent figure for the second quarter of the 2014 fiscal year was EUR51
million, with the improvement resulting from a higher level of cash
provided by operating activities, in combination with a slight reduction in
the amount of investments.

The gross cash position increased to EUR2,263 million at the end of the
third quarter of the 2014 fiscal year, compared with EUR2,198 million three
months earlier. The net cash position also improved from EUR2,010 million
on March 31, 2014 to EUR2,073 million on June 30, 2014.

OUTLOOK FOR THE FOURTH QUARTER AND THE 2014 FISCAL YEAR

Infineon expects further growth in the fourth quarter of the 2014 fiscal
year with an increase in revenue between 3 and 7 percent compared to the
previous quarter. The Segment Result Margin is expected to be between 15
and 17 percent.

Given the results for the first nine months and the outlook for the fourth
quarter, the increase in revenue and the Segment Result Margin for the 2014
fiscal year are expected to be slightly above the previously indicated
ranges (year-on-year increase in revenue of between 7 and 11 percent,
Segment Result Margin of between 11 and 14 percent). The assumed exchange
rate of the US dollar against the euro remains unchanged at 1.35.