Infineon Technologies Reports Robust Q2 Revenue, Earnings Growth

Infineon Technologies AG IFNNY reported second-quarter FY21 revenue growth of 36% year on year to €2.7 billion.
Automotive revenue rose 45% to €1.2 billion; Industrial Power Control revenue stood flat at €361 million; Power & Sensor Systems revenue rose 28% to €787 million; Connected Secure Systems revenue rose 98% to €329 million, and Other Operating Segments revenue rose 3% to €4 million.
Infineon's manufacturing facilities were running at full speed, and the company continued to invest in the additional capacity, CEO Dr. Reinhard Ploss said.
Ploss talked about bottlenecks in segments where it depended on chips supplied by foundries, especially in automotive microcontrollers and IoT products.
Adjusted gross margin expanded 370 basis points to 39.3%, and operating income rose 17% to €209 million.
Adjusted net income rose 84.4% to €308 million, with adjusted EPS of €0.24.
The company generated €742 million in operating cash flow.
Guidance: Q3 revenue guidance lies between €2.6 billion and €2.9 billion.
Price action: IFNNY shares traded lower by 5.62% at $38.65 on the last check Tuesday.

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