e6vk
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
April 22, 2008
QIMONDA AG
Gustav-Heinemann-Ring 212
D-81739 Munich
Federal Republic of Germany
Tel: +49-89-60088-0
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-___.
TABLE OF CONTENTS
This Report on Form 6-K contains the press releases dated April 21, 2008 of Qimonda AG.
|
|
|
Results of the second financial quarter ended March 31, 2008 |
|
|
|
|
Goodwill impairment by Qimonda AG and write-down by Infineon AG in Qimonda AG |
News Release Presseinformation
Qimonda Reports Results for the Second Quarter of Financial Year 2008
KEY FIGURES AND HIGHLIGHTS
|
|
Net sales declined to Euro 412 million; EBIT loss narrowed to Euro 468 million and net loss
narrowed to Euro 482 million from the previous quarter,
including Euro 61 million impairment of goodwill |
|
|
|
Gross cash position of Euro 768 million; positive net
cash position of Euro 216 million |
|
|
|
Introducing Euro 180 million comprehensive cost reduction program including a reduction in
workforce in the range of 10 percent on a worldwide basis |
|
|
|
Significant progress in discussions with potential partners results in first license
agreement with Winbond on 65nm Buried Wordline technology |
|
|
|
Mass production of breakthrough Buried Wordline technology planned for September 2008 |
Munich, Germany April 21, 2008 Qimonda AG (NYSE: QI) today announced results for the second
quarter of financial year (FY) 2008, which ended March 31, 2008. Net sales decreased to Euro 412
million, or 20 percent, from Euro 513 million in the first quarter of FY 2008. Compared to the
second quarter of FY 2007, sales declined 58 percent from Euro 984 million.
Page 2 of 10 April 21, 2008
In the second quarter of FY 2008, Qimonda recorded an EBIT loss of Euro 468 million compared to an
EBIT loss of Euro 590 million in the first quarter of FY 2008 and a positive EBIT of Euro 85
million in the second quarter of FY 2007. Net loss was
Euro 482 million, or a loss per share (basic and diluted) of Euro 1.41, compared to a net loss of
Euro 598 million in the first quarter of FY 2008, or a loss per share (basic and diluted) of Euro
1.75. In the second quarter of FY 2007, Qimonda reported net income of Euro 57 million or earnings
per share (basic and diluted) of Euro 0.17.
For the first half of FY 2008, Qimonda recorded net sales of Euro 925 million, a decrease of 57
percent compared to the same period last year. EBIT loss for the first half of the financial year
was Euro 1,058 million compared to a positive EBIT of Euro 335 million in the first half of the
previous financial year. Net loss amounted to Euro 1,080 million or a loss per share of Euro 3.16
compared to net income of Euro 234 million or earnings per share of Euro 0.68 in the first half of
FY 2007.
Even though second quarter results show an improvement compared to last quarter, we are still
operating in extremely difficult market conditions, said Kin Wah Loh, President and Chief
Executive Officer of Qimonda AG. Since the beginning of this industry downturn, we have reduced
our capital expenditures, phased out 200mm foundries and more recently reduced the loading of our
300mm foundry capacities. Now we are introducing a
comprehensive cost reduction program to further adjust our cost structure. At the same time, our
breakthrough Buried Wordline technology will give us a competitive leap forward in productivity,
product portfolio and partnerships. I am excited to announce our first partnership based on this
new technology platform with Winbond.
Page 3 of 10 April 21, 2008
Results from Operations
In the second quarter, Qimonda realized bit shipment growth of 48 percent compared to the
corresponding period one year earlier. Net sales decreased mainly due to a
67 percent decline in average selling price for the companys products compared with the prior year
quarter as well as a weaker US dollar. Compared with the first financial quarter, bit production
grew by 6 percent mainly due to productivity improvements. Bit shipments decreased by 9 percent as
finished goods inventories grew slightly. Net sales decreased due to the lower bit shipments and a
7 percent decline in average selling prices for the companys products. Qimondas share of
shipments to PC applications grew slightly to 56 percent due to its increased focus on accelerating
the conversion of its process technology.
In the second quarter of FY 2008, Qimonda generated 32 percent of its net sales in North America,
17 percent in Europe, 40 percent in Asia Pacific and 11 percent in Japan.
Year over year, gross margin and net income turned to losses due to the significant decline in
average selling prices, resulting in a net loss in the second quarter of FY 2008. The effect of the
rapid and deep price decline could not be offset by higher bit shipments and improved manufacturing
productivity. Quarter over quarter, negative gross margin and net loss narrowed primarily due to
the absence of inventory write downs for the quarter as well as the effect of the restructuring and
business discontinuation charges that were recorded in the first quarter. However, net loss in the
second quarter included a write down of goodwill of Euro 61 million. Pursuant to US GAAP standard
SFAS No. 142, the company assessed its recorded goodwill for impairment. As a result of this
assessment, Qimonda wrote off the full carrying amount
Page 4 of 10 April 21, 2008
of its goodwill as of March 31, 2008. This
non-cash charge of Euro 61 million is reflected as other operating expense.
Qimonda had converted more than 75 percent of its capacities to 80nm and 75nm by the end of March
and is on track to reach a conversion rate of 90 percent by September 2008.
Cash Flow and Balance Sheet
In the second quarter of FY 2008, cash outflow from operations narrowed to
Euro 110 million compared to an outflow of Euro 158 million in the first quarter of
FY 2008, mainly due to improvements in working capital. Capital expenditures in the second quarter
of FY 2008 were primarily used for technology conversions and
decreased significantly to Euro 79 million from Euro 190 million in the prior quarter. Free cash
flow was negative Euro 193 million. The previous quarter free cash flow of negative Euro 217
million included a cash inflow of Euro 131 million from sale leaseback transactions.
At the end of the second quarter of FY 2008, Qimondas gross cash position increased to Euro 768
million compared to Euro 746 million in the last quarter. The companys net cash position in the
second quarter was Euro 216 million compared to Euro 374 million in the first quarter of FY 2008.
The second quarter figures include Euro 170 million in proceeds from a convertible bond issuance
and a Euro 40 million term loan.
In a difficult market environment we maintained strict financial discipline and ensured
a solid cash position, said Michael Majerus, Chief Financial Officer of Qimonda AG.
Page 5 of 10 April 21, 2008
Technology and Partnerships
Based on the recent progress the company has made, Qimonda plans to further accelerate the
conversion to the new Buried Wordline technology and plans to introduce the first product, a 1G
DDR2 on 65nm Buried Wordline technology, in September 2008.
Qimonda has just signed a technology license and foundry agreement on the 65nm Buried Wordline
technology with Winbond. This partnership builds on a longstanding history of successful mutual
cooperation. Qimonda is also in discussions with other potential partners regarding its
breakthrough technology.
Cost Reduction Program
Since the beginning of the market downturn in 2007, Qimonda has cut capital expenditures
approximately by half, completely phased out less productive 200mm foundries and reduced 300mm
foundry capacities. This puts Qimonda now in a position to implement in a second step a
comprehensive cost reduction program to adjust its cost structure accordingly and lower its
breakeven point. The company targets Euro 180 million in annualized cost reductions compared to the
current cost structure. These cost reductions are based on a combination of reducing workforce in
the range of 10 percent on a worldwide basis and cutting recurring costs. This includes a reduction
in non-volatile memory development to basic research activities. The related agreement with
Macronix will be terminated. Qimonda expects to realize these savings in full starting in FY 2009
and to accrue any restructuring charges relating to this program by the end of FY 2008.
Page 6 of 10 April 21, 2008
Outlook
For the third quarter, Qimonda expects its bit production to decrease by a high single digit
percentage compared to the second quarter, mainly due the reduction of capacity corridors with
foundry partners.
Qimonda is currently targeting an increase in its bit production for FY 2008 of 20 to
30 percent, taking into account a reduction of 300mm capacities at its foundry partners, compared
to its prior estimate of 30 to 40 percent. In general, Qimonda expects a slow down of supply growth
in the market, in line with market researchers, eventually leading to a more balanced supply and
demand situation.
Qimonda is further reducing its target for SG&A expenses for FY 2008 to between
Euro 180 million and Euro 200 million compared to its original target at the beginning of the
financial year of between Euro 210 million and Euro 230 million.
For FY 2008, Qimonda continues to expect bit demand for DRAM to be driven by continued solid growth
in servers, consumer and communication applications and the move to higher density modules in the
PC market. Qimonda expects its share of bit-shipments for use in non-PC applications to be greater
than 50 percent for the full financial year.
Recent Strategic and Production Highlights
|
|
Technology Breakthrough: innovative Buried Wordline DRAM technology to further advance the
companys diversified product portfolio and to deliver improvements in its productivity. |
Page 7 of 10 April 21, 2008
|
|
Convertible bond fully exercised with total principal amount of US Dollar 248.1 million. |
|
|
|
Intel Validation of DDR3 SO-DIMMs on upcoming Intel® Centrino® 2 Processor Technology
Mobile Platforms. |
Upcoming Events 2008
Ø |
|
July 24 Earnings Release for the Third Quarter of FY 2008 |
Unaudited Financial Information
Attached is Qimondas unaudited financial information for the second quarter of the 2008 financial
year, which ended March 31, 2008. This financial information includes reconciliations of the non-US
GAAP financial measures EBIT, net cash position and free cash flow to net income, gross cash
position and cash flow from operations, respectively, which are the closest measures prepared in
accordance with US GAAP. Financial information as of dates before and for periods beginning before
May 1, 2006 is derived from Qimondas combined financial statements prepared in
accordance with its carve-out from Infineon, effective on that date.
Conference Call
The company will host a conference call today at 4:30pm EST, 1:30pm PST, 9:30pm GMT, and 10:30pm
CET to discuss its financial results. The web cast and slide presentation will be available at
www.qimonda.com. A webcast replay will be available for a limited time on the companys web site.
An audio replay of the conference call will also be available at phone number +1 718 354 1112 (US),
+44 (0)20 7806 1970 (UK), +49 (0)69 22222 0418 (Germany), +81 (0)3 3570 8212 (Japan), pass code:
7984877 #, beginning at 6:30pm EST today and continuing until 5:59pm EST on April 24, 2008.
Page 8 of 10 April 21, 2008
About Qimonda
Qimonda AG (NYSE: QI) is a leading global memory supplier with a broad diversified DRAM product
portfolio. The company generated net sales of Euro 3.61 billion in financial year 2007 and had
approximately 13,500 employees worldwide. Qimonda has access to five 300mm manufacturing sites on
three continents and operates six major R&D facilities. The company provides DRAM products for a
wide variety of applications, including in the computing, infrastructure, graphics, mobile and
consumer areas, using its power saving technologies and designs. Further information is available
at www.qimonda.com.
Disclaimer
This press release contains forward-looking statements based on assumptions and forecasts made by
Qimonda management and third parties. Statements that are not historical facts, including
statements about our beliefs and expectations, are forward-looking statements. These statements are
based on current plans, estimates and projections, and speak only as of the date they are made. We
undertake no obligation to update any of them in light of new information or future events. These
forward-looking statements involve inherent risks and are subject to a number of uncertainties,
including trends in demand and prices for semiconductors generally and for our products in
particular, the success of our development efforts, both alone and with our partners, the success
of our efforts to introduce new production processes at our facilities and the actions of our
competitors, the availability of funds for planned expansion efforts and the outcome of antitrust
investigations and litigation matters, as well as other factors. We caution you that these and a
number of other known and unknown risks, uncertainties and other factors could cause actual future
results, or outcomes to differ materially from those expressed in any forward-looking statement.
These factors include those identified under the heading Risk Factors in our most recent Annual
Report on Form 20-F and our prospectus supplement filed with the SEC on February 11, 2008, each of
which is available without charge on our website and at www.sec.gov.
Page 9 of 10 April 21, 2008
Qimonda AG and Subsidiaries
Unaudited Financial Information
Second Quarter 31.03.2008
All amounts in Euro millions, except where otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months |
|
|
3 Months |
|
|
3 Months |
|
|
6 Months |
|
|
6 Months |
|
|
|
March 31 |
|
|
Dec 31 |
|
|
March 31 |
|
|
March 31 |
|
|
March 31 |
|
|
|
Q2 FY 2008 |
|
|
Q1 FY 2008 |
|
|
Q2 FY 2007 |
|
|
FY 2008 |
|
|
FY 2007 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
RESULTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales |
|
|
412 |
|
|
|
513 |
|
|
|
984 |
|
|
|
925 |
|
|
|
2,157 |
|
Cost of goods sold |
|
|
(652 |
) |
|
|
(927 |
) |
|
|
(785 |
) |
|
|
(1,579 |
) |
|
|
(1,608 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit |
|
|
(240 |
) |
|
|
(414 |
) |
|
|
199 |
|
|
|
(654 |
) |
|
|
549 |
|
Research and development expense |
|
|
(109 |
) |
|
|
(110 |
) |
|
|
(96 |
) |
|
|
(219 |
) |
|
|
(193 |
) |
Selling, general and administrative expense |
|
|
(42 |
) |
|
|
(48 |
) |
|
|
(48 |
) |
|
|
(90 |
) |
|
|
(92 |
) |
Restructuring charges |
|
|
(2 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
(18 |
) |
|
|
|
|
Other operating (expense) income, net |
|
|
(60 |
) |
|
|
3 |
|
|
|
3 |
|
|
|
(57 |
) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(453 |
) |
|
|
(585 |
) |
|
|
58 |
|
|
|
(1,038 |
) |
|
|
267 |
|
Interest (expense) income, net |
|
|
(5 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
3 |
|
Equity (loss) in earnings of associated companies |
|
|
(12 |
) |
|
|
2 |
|
|
|
28 |
|
|
|
(10 |
) |
|
|
65 |
|
Loss on associated company share issuance |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
Other non-operating (expense) income, net |
|
|
(2 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
6 |
|
Minority interests |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(473 |
) |
|
|
(589 |
) |
|
|
87 |
|
|
|
(1,062 |
) |
|
|
338 |
|
Income tax expense |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(30 |
) |
|
|
(18 |
) |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(482 |
) |
|
|
(598 |
) |
|
|
57 |
|
|
|
(1,080 |
) |
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share basic and diluted (in euro) |
|
|
(1.41 |
) |
|
|
(1.75 |
) |
|
|
0.17 |
|
|
|
(3.16 |
) |
|
|
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
540 |
|
|
|
509 |
|
|
|
872 |
|
|
|
540 |
|
|
|
872 |
|
Marketable securities |
|
|
228 |
|
|
|
237 |
|
|
|
263 |
|
|
|
228 |
|
|
|
263 |
|
Trade accounts receivable, net |
|
|
194 |
|
|
|
258 |
|
|
|
505 |
|
|
|
194 |
|
|
|
505 |
|
Inventories |
|
|
344 |
|
|
|
386 |
|
|
|
753 |
|
|
|
344 |
|
|
|
753 |
|
Deferred income taxes |
|
|
31 |
|
|
|
38 |
|
|
|
51 |
|
|
|
31 |
|
|
|
51 |
|
Other current assets |
|
|
147 |
|
|
|
240 |
|
|
|
201 |
|
|
|
147 |
|
|
|
201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
1,484 |
|
|
|
1,668 |
|
|
|
2,645 |
|
|
|
1,484 |
|
|
|
2,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
1,982 |
|
|
|
2,146 |
|
|
|
2,061 |
|
|
|
1,982 |
|
|
|
2,061 |
|
Intangible assets, net |
|
|
71 |
|
|
|
138 |
|
|
|
153 |
|
|
|
71 |
|
|
|
153 |
|
Long-term investments |
|
|
561 |
|
|
|
594 |
|
|
|
668 |
|
|
|
561 |
|
|
|
668 |
|
Deferred income taxes |
|
|
142 |
|
|
|
151 |
|
|
|
162 |
|
|
|
142 |
|
|
|
162 |
|
Other assets |
|
|
24 |
|
|
|
19 |
|
|
|
19 |
|
|
|
24 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
4,264 |
|
|
|
4,716 |
|
|
|
5,708 |
|
|
|
4,264 |
|
|
|
5,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities |
|
|
123 |
|
|
|
68 |
|
|
|
69 |
|
|
|
123 |
|
|
|
69 |
|
Trade accounts payable |
|
|
603 |
|
|
|
704 |
|
|
|
658 |
|
|
|
603 |
|
|
|
658 |
|
Accrued liabilities |
|
|
121 |
|
|
|
146 |
|
|
|
150 |
|
|
|
121 |
|
|
|
150 |
|
Deferred income taxes |
|
|
5 |
|
|
|
5 |
|
|
|
17 |
|
|
|
5 |
|
|
|
17 |
|
Other current liabilities |
|
|
297 |
|
|
|
261 |
|
|
|
294 |
|
|
|
297 |
|
|
|
294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
1,149 |
|
|
|
1,184 |
|
|
|
1,188 |
|
|
|
1,149 |
|
|
|
1,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
429 |
|
|
|
304 |
|
|
|
129 |
|
|
|
429 |
|
|
|
129 |
|
Pension liabilities |
|
|
27 |
|
|
|
25 |
|
|
|
29 |
|
|
|
27 |
|
|
|
29 |
|
Deferred income taxes |
|
|
14 |
|
|
|
26 |
|
|
|
51 |
|
|
|
14 |
|
|
|
51 |
|
Long-term accrued liabilities |
|
|
16 |
|
|
|
18 |
|
|
|
5 |
|
|
|
16 |
|
|
|
5 |
|
Other liabilities |
|
|
226 |
|
|
|
202 |
|
|
|
182 |
|
|
|
226 |
|
|
|
182 |
|
Minority Interest |
|
|
80 |
|
|
|
84 |
|
|
|
76 |
|
|
|
80 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,941 |
|
|
|
1,843 |
|
|
|
1,660 |
|
|
|
1,941 |
|
|
|
1,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
2,323 |
|
|
|
2,873 |
|
|
|
4,048 |
|
|
|
2,323 |
|
|
|
4,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
|
4,264 |
|
|
|
4,716 |
|
|
|
5,708 |
|
|
|
4,264 |
|
|
|
5,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 10 of 10 April 21, 2008
Qimonda AG and Subsidiaries
Unaudited Financial Information
Second Quarter 31.03.2008
All amounts in Euro millions, except where otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months |
|
|
3 Months |
|
|
3 Months |
|
|
6 Months |
|
|
6 Months |
|
|
|
March 31 |
|
|
Dec 31 |
|
|
March 31 |
|
|
March 31 |
|
|
March 31 |
|
|
|
Q2 FY 2008 |
|
|
Q1 FY 2008 |
|
|
Q2 FY 2007 |
|
|
FY 2008 |
|
|
FY 2007 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash (used in) provided by operating activities therein: |
|
|
(110 |
) |
|
|
(158 |
) |
|
|
286 |
|
|
|
(268 |
) |
|
|
724 |
|
Depreciation and amortization |
|
|
162 |
|
|
|
163 |
|
|
|
171 |
|
|
|
325 |
|
|
|
332 |
|
Impairment Goodwill |
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities therein: |
|
|
(87 |
) |
|
|
(35 |
) |
|
|
(278 |
) |
|
|
(122 |
) |
|
|
(486 |
) |
Net
(purchases) proceeds of marketable securities |
|
|
(4 |
) |
|
|
24 |
|
|
|
(119 |
) |
|
|
20 |
|
|
|
(130 |
) |
Purchases of property, plant and equipment |
|
|
(79 |
) |
|
|
(190 |
) |
|
|
(144 |
) |
|
|
(269 |
) |
|
|
(365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) financing activities therein: |
|
|
232 |
|
|
|
(38 |
) |
|
|
(191 |
) |
|
|
194 |
|
|
|
(295 |
) |
Net change in short-term debt due Infineon |
|
|
|
|
|
|
|
|
|
|
(184 |
) |
|
|
|
|
|
|
(296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(482 |
) |
|
|
(598 |
) |
|
|
57 |
|
|
|
(1,080 |
) |
|
|
234 |
|
Interest (expense) income, net |
|
|
(5 |
) |
|
|
1 |
|
|
|
2 |
|
|
|
(4 |
) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before Interest (EBI) |
|
|
(477 |
) |
|
|
(599 |
) |
|
|
55 |
|
|
|
(1,076 |
) |
|
|
231 |
|
Income tax expense |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(30 |
) |
|
|
(18 |
) |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before Interest and Taxes (EBIT) |
|
|
(468 |
) |
|
|
(590 |
) |
|
|
85 |
|
|
|
(1,058 |
) |
|
|
335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
540 |
|
|
|
509 |
|
|
|
872 |
|
|
|
540 |
|
|
|
872 |
|
Marketable securities |
|
|
228 |
|
|
|
237 |
|
|
|
263 |
|
|
|
228 |
|
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cash position |
|
|
768 |
|
|
|
746 |
|
|
|
1,135 |
|
|
|
768 |
|
|
|
1,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities |
|
|
123 |
|
|
|
68 |
|
|
|
69 |
|
|
|
123 |
|
|
|
69 |
|
Long-term debt |
|
|
429 |
|
|
|
304 |
|
|
|
129 |
|
|
|
429 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial debt |
|
|
552 |
|
|
|
372 |
|
|
|
198 |
|
|
|
552 |
|
|
|
198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash position |
|
|
216 |
|
|
|
374 |
|
|
|
937 |
|
|
|
216 |
|
|
|
937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
2,323 |
|
|
|
2,873 |
|
|
|
4,048 |
|
|
|
2,323 |
|
|
|
4,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Employed |
|
|
2,107 |
|
|
|
2,499 |
|
|
|
3,111 |
|
|
|
2,107 |
|
|
|
3,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
(110 |
) |
|
|
(158 |
) |
|
|
286 |
|
|
|
(268 |
) |
|
|
724 |
|
Net cash used in investing activities |
|
|
(87 |
) |
|
|
(35 |
) |
|
|
(278 |
) |
|
|
(122 |
) |
|
|
(486 |
) |
Net purchases (proceeds) of marketable securities |
|
|
4 |
|
|
|
(24 |
) |
|
|
119 |
|
|
|
(20 |
) |
|
|
130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
(193 |
) |
|
|
(217 |
) |
|
|
127 |
|
|
|
(410 |
) |
|
|
368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS AND RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
|
(58 |
)% |
|
|
(81 |
)% |
|
|
20 |
% |
|
|
(71 |
)% |
|
|
25 |
% |
R&D as % of sales |
|
|
26 |
% |
|
|
21 |
% |
|
|
10 |
% |
|
|
24 |
% |
|
|
9 |
% |
SG&A as % of sales |
|
|
10 |
% |
|
|
9 |
% |
|
|
5 |
% |
|
|
10 |
% |
|
|
4 |
% |
EBI / Sales |
|
|
(116 |
)% |
|
|
(117 |
)% |
|
|
6 |
% |
|
|
(116 |
)% |
|
|
11 |
% |
EBIT Margin |
|
|
(114 |
)% |
|
|
(115 |
)% |
|
|
9 |
% |
|
|
(114 |
)% |
|
|
16 |
% |
Net income / Sales |
|
|
(117 |
)% |
|
|
(117 |
)% |
|
|
6 |
% |
|
|
(117 |
)% |
|
|
11 |
% |
Effective Tax Rate |
|
|
(2 |
)% |
|
|
(2 |
)% |
|
|
34 |
% |
|
|
(2 |
)% |
|
|
31 |
% |
Weighted Average Shares Outstanding (million) basic |
|
|
342 |
|
|
|
342 |
|
|
|
342 |
|
|
|
342 |
|
|
|
342 |
|
Sales / Equity |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.0 |
|
|
|
0.8 |
|
|
|
1.1 |
|
Capital Turnover (Sales / Capital Employed) |
|
|
0.8 |
|
|
|
0.8 |
|
|
|
1.3 |
|
|
|
0.9 |
|
|
|
1.4 |
|
Net (loss) income / Equity ratio |
|
|
(83 |
)% |
|
|
(83 |
)% |
|
|
6 |
% |
|
|
(93 |
)% |
|
|
12 |
% |
ROCE (EBI / Capital Employed) |
|
|
(91 |
)% |
|
|
(96 |
)% |
|
|
7 |
% |
|
|
(102 |
)% |
|
|
15 |
% |
News Release Presseinformation
Qimondas operations and balance sheet unaffected by Infineon write-down
Goodwill impairment of
61 million; remaining assets not impaired
Munich, April 21, 2008 Infineon Technologies AG, Munich, today announced that it takes the next
step in preparation for the planned disposal and resulting deconsolidation of its investment in
Qimonda AG, Munich. As of March 31, 2008, the assets and liabilities of Qimonda are being
reclassified into Assets Held for Sale in the consolidated balance sheet of Infineon. Following
this reclassification, and in contemplation of its planned deconsolidation, the carrying amount of
the investment in Qimonda was reduced to its market value determined on a held-for-sale basis. The
accounting by Infineon for its investment in Qimonda has no direct impact on Qimondas financial
reporting.
Independent of Infineons reclassification of its investment in Qimonda to Assets Held for Sale,
Qimonda has, in accordance with the accounting principles applicable to it, assessed its own assets
for recoverability of their carrying values. This assessment is based on the expected future use of
the companys assets in its continuing operations and, among other factors, considers medium term
developments and expectations in Qimondas business. Based on the analysis performed, Qimonda
concluded that the carrying amount of its pre-existing goodwill is impaired and determined that all
of its tangible and remaining intangible assets are not impaired. As a result, Qimonda will write
off goodwill and charge other operating expense in the total amount of
Euro 61 million as of March 31, 2008.
page 2 of 2 April 21, 2008
About Qimonda
Qimonda AG (NYSE: QI) is a leading global memory supplier with a broad diversified DRAM product
portfolio. The company generated net sales of Euro 3.61 billion in its financial year 2007 and had
approximately 13,500 employees worldwide. Qimonda has access to five 300mm manufacturing sites on
three continents and operates six major R&D facilities. The company provides DRAM products for a
wide variety of applications, including in the computing, infrastructure, graphics, mobile and
consumer areas, using its power saving technologies and designs. Further information is available
at www.qimonda.com.
Disclaimer
This press release contains forward-looking statements based on assumptions and forecasts made by
Qimonda management and third parties. Statements that are not historical facts, including
statements about our beliefs and expectations, are forward-looking statements. These statements are
based on current plans, estimates and projections, and speak only as of the date they are made. We
undertake no obligation to update any of them in light of new information or future events. These
forward-looking statements involve inherent risks and are subject to a number of uncertainties,
including trends in demand and prices for semiconductors generally and for our products in
particular, the success of our development efforts, both alone and with our partners, the success
of our efforts to introduce new production processes at our facilities and the actions of our
competitors, the availability of funds for planned expansion efforts and the outcome of antitrust
investigations and litigation matters, as well as other factors. We caution you that these and a
number of other known and unknown risks, uncertainties and other factors could cause actual future
results, or outcomes to differ materially from those expressed in any forward-looking statement.
These factors include those identified under the heading Risk Factors in our most recent Annual
Report on Form 20-F and our prospectus supplement filed with the SEC on February 11, 2008, each of
which is available without charge on our website and at www.sec.gov.
For the Business and Trade Press
|
|
|
|
|
|
|
Public Relations
|
|
Name
|
|
Phone
|
|
E-mail |
Worldwide Headquarters
|
|
Michael Kraft
|
|
+49 89 60088 1400
|
|
michael.kraft@qimonda.com |
|
|
Ralph Heinrich
|
|
+49 89 60088 1300
|
|
ralph.heinrich@qimonda.com |
Investor Relations Worldwide
|
|
Steve Harrison
|
|
+1 919 677 6904
|
|
steve.harrison@qimonda.com |
Investor Relations Europe & Asia
|
|
Andreas Schaller
|
|
+49 89 60088 1200
|
|
andreas.schaller@qimonda.com |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this press release to be signed on its behalf by the undersigned, thereunto duly
authorized.
|
|
|
|
|
|
QIMONDA AG
|
|
Date: April 22, 2008 |
By: |
/s/ Kin Wah Loh
|
|
|
|
Kin Wah Loh
Chief Executive Officer and
Chairman of the Management Board
|
|
|
|
|
|
|
|
By: |
/s/ Dr. Michael Majerus
|
|
|
|
Dr. Michael Majerus |
|
|
|
Chief Financial Officer and
Member of the Management Board
|
|
|