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Infineon Prepares for Disposal and Deconsolidation of Qimonda Investment
(Business and Technology News, 23 Apr 2008 )
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Infineon Technologies AG continues to prepare for the disposal and resulting deconsolidation of its investment in Qimonda AG and takes the next step in this direction. The Infineon Audit Committee reaffirmed the decision to reclassify the assets and liabilities of Qimonda into "Assets Held for Sale" in the consolidated balance sheet of Infineon as of March 31, 2008. The quarterly results of Infineon Technologies AG which is scheduled to be announced today will include this presentation.
As a result of this presentation, the individual line items in the Consolidated Statement of Operations of Infineon will reflect the results of Infineon's segments other than Qimonda. The results of operations of Qimonda will be reported in one line item titled "Income (Loss) from Discontinued Operations". Going forward, earnings per share as well as the Statement of Cash Flows will differentiate between "continuing" and "discontinued" operations. Accordingly, the financial reports will now focus on the ongoing operations of the company while at the same time setting the foundation for the comparability of its performance.
Following this reclassification, and in contemplation of its planned disposal and resulting deconsolidation, the investment in Qimonda was reduced to its current fair value. The difference between the carrying value and the current fair value resulted in a write-down of Euro 1 billion, which will be recorded in "Income (Loss) from Discontinued Operations" in the second quarter of the current fiscal year. The existing guidance on Ebit development for Infineon excluding Qimonda for the second quarter of fiscal year 2008 and for the complete fiscal year 2008 remains unchanged.
Infineon has repeatedly communicated its goal of reducing its investment in Qimonda below 50 percent by no later than the 2009 Annual Meeting of Shareholders and is currently evaluating its different alternatives. Infineon currently holds a 77.47 percent interest in Qimonda.
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