Infineon had calendar Q2 revenues of  €2,015 million up 2% from calendar Q1’s €1,983 million.

The profit was €317 million.

The forecast for calendar Q3 is plus 1% and the forecast for the year is revenue of €8 billion.

“Infineon remains on course,” said Reinhard Ploss (pictured) “although the global economy remains sluggish, Group revenue again grew in the third quarter. Demand was solid overall, despite the lack of significant growth momentum. Regardless of the ongoing unfavourable macroeconomic conditions, we still expect to achieve our targets for the current fiscal year.”

 All four business  segments – Automotive (ATV), Industrial Power Control (IPC), Power Management & Multimarket (PMM) and Digital Security Solutions (DSS) – contributed to growth with slightly higher revenue figures.

The gross margin was 36.5%, compared to 37.8% in the previous  quarter. 

Free cash flow from continuing operations improved from a negative €137 million in the prior quarter to a positive €63 million.

Net cash provided by operating activities was €396 million, up from €215 million in the previous quarter.

The gross cash position at the end of the quarter was €3,435 million, compared to €1,882 million at 31 March 2019. 

The net cash position improved from €333 million to €1,900 million. 

Both figures include the proceeds of €1.5 billion resulting from the capital increase executed on 18 June 2019 in connection with the planned acquisition of Cypress.

“The planned acquisition of Cypress is a landmark step in Infineon’s strategic development” said Ploss, “with this transaction, Infineon is entering a new dimension,”