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
January 23,
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- .
This Report on Form 6-K contains the press release for the first financial quarter ended
December 31, 2007 of Qimonda AG dated January 22, 2008.
News Release · Presseinformation
Qimonda Reports Results for the First Quarter of Financial Year 2008
Munich, Germany January 22, 2008 Qimonda AG (NYSE: QI) today announced results for the first
quarter of its financial year (FY) 2008, which ended December 31, 2007. Net sales decreased to Euro
513 million, or 28 percent, from Euro 711 million
in the fourth quarter of FY 2007. Compared to the first quarter of FY 2007, sales declined by 56
percent from Euro 1.17 billion.
In the first quarter of FY 2008, Qimonda recorded an EBIT loss of Euro 590 million compared to an
EBIT loss of Euro 258 million in the fourth quarter of FY 2007 and a positive EBIT of Euro 250
million in the first quarter of FY 2007. Net loss was
Euro 598 million, or a loss per share (basic and diluted) of Euro 1.75, compared to a net loss of
Euro 265 million in the fourth quarter of FY 2007, or a loss per share (basic and diluted) of Euro
0.77. In the first quarter of FY 2007, Qimonda reported a net income of Euro 177 million or
earnings per share (basic and diluted) of Euro 0.52.
During the last quarter, the DRAM market saw a further drop of more than 40 percent in standard
DRAM pricing, one of the strongest declines in a December quarter. Our previously announced
measures were executed successfully, but could not compensate for this difficult market
environment, said Kin Wah Loh, President and CEO of Qimonda AG. We significantly reduced our cost
per bit during the quarter by almost 20 percent based on strong bit shipment growth, productivity
improvements in manufacturing and reduced operating expenses. Furthermore, we converted more than
50 percent of our capacities to 80nm and 75nm by the end of December. We are on track with our
plans
Page 2 of 8 January 22, 2008
to reach a conversion rate of 75 percent by March and 90 percent by September 2008. In addition, we
are significantly cutting our capital expenditure plan for the current financial year by Euro 250
million.
Results from Operations
In the first quarter, Qimonda realized bit-shipment growth of 73 percent compared to the
corresponding period one year earlier. Net sales decreased mainly due to a severe
72 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 fourth financial quarter, bit-production
was flat while bit-shipments increased by 27 percent on a strong reduction of inventory. Net sales
decreased due to a 40 percent decline in average selling prices for the companys products. While
Qimondas bit shipments to non-PC applications increased on an absolute basis, the share of
shipments to PC applications temporarily grew to 55 percent due to an accelerated technology
conversion and the companys efforts to reduce inventory in a strong PC demand environment.
Year over year and quarter over quarter, gross margins and net income decreased due to the
significant decline in average selling prices, resulting in a net loss in the first quarter of FY
2008. These effects could not be offset by higher bit-shipments and improved manufacturing
productivity. The sharp decline in prices resulted in additional inventory write-downs of Euro 122
million in the first quarter, which further negatively impacted gross margin and profitability.
Additionally, Qimonda recorded charges of
Euro 33 million, mainly related to the planned restructuring and discontinuation of the contract
manufacturing of 200mm Qimonda products by Infineon Dresden.
Page 3 of 8 January 22, 2008
Cash Flow and Balance Sheet
In the first quarter of FY 2008, cash outflow from operations was Euro 158 million compared to an
inflow of Euro 211 million in the fourth quarter FY 2007, mainly due to the strong decline in
average selling price. Capital expenditures in the first quarter of
FY 2008 were Euro 190 million, primarily for technology conversions and for R&D operations at
Dresden. Free cash flow was negative Euro 217 million compared to positive Euro 90 million in the
previous quarter.
At the end of the first quarter of FY 2008, the companys gross cash position was Euro 746 million and its net cash position was Euro 374 million. These figures include Euro 131
million received from sale-leaseback transactions in the first quarter involving 200mm and 300mm
equipment of the Richmond facility.
We maintained a solid cash position and mitigated the impact from the worse-than-expected market
conditions on our balance sheet, said Dr. Michael Majerus, CFO of Qimonda AG. We ended last
quarter with a net cash position and a low debt-to-equity ratio.
In the first quarter of FY 2008, Qimonda generated 34 percent of its net sales in North America, 17
percent in Europe, 36 percent in Asia Pacific and 13 percent in Japan.
Outlook
Qimonda is currently targeting an increase in its bit production for FY 2008 of
30 to 40 percent as compared to its prior estimate of about 50 percent, taking into account an
accelerated reduction of 200mm capacities, partly offset by productivity improvements through
conversion to 80nm and 75nm technologies. For the second
Page 4 of 8 January 22, 2008
quarter, bit production is expected to be up by a mid single digit percentage compared to the first
quarter. Additionally, Qimonda has begun to reassess its capacity corridors with foundry partners
in light of the relatively low DRAM market price environment.
For FY 2008, Qimonda continues to expect bit demand for DRAM to be driven by continued solid growth
in graphics, 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.
Qimonda has reduced its target for capital expenditures for FY 2008 to a range of Euro 400 million to Euro 500 million. As part of the saving measures, the construction of a new
300mm fab in Singapore is put on hold pending improving market conditions.
Recent Strategic and Production Highlights
|
|
DRAM development Joint Venture with Sony |
|
|
Opening of basic materials research Joint Venture NaMLab in Dresden, Germany |
|
|
Shipment of industrys first GDDR5 (Graphics Double Data Rate 5) samples to customers |
|
|
Partnership on non-volatile memory technologies development with Macronix |
|
|
Sampling of the companys first XDRTM DRAM for computing and consumer
electronics |
|
|
Qualification of cost optimized 1G DDR2 on 75nm technology |
Page 5 of 8 January 22, 2008
Upcoming Events 2008
|
|
January 29 Annual General Meeting of Shareholders, Munich |
|
|
February 27 Goldman Sachs Technology Conference, Las Vegas |
|
|
March 12 UBS Technology Conference, London |
|
|
April 21 Earnings Release for the Second Quarter of FY 2008 |
|
|
July 22 Earnings Release for the Third Quarter of FY 2008 |
Unaudited Financial Information
Attached is Qimondas unaudited financial information for the first quarter of the 2008 financial
year, which ended December 31, 2007. 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:
5196420 #, beginning at 6:30pm EST today and continuing until 5:59pm EST on January 26, 2008.
Page 6 of 8 January 22, 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, available without charge on our website and at www.sec.gov.
Page 7 of 8 January 22, 2008
Qimonda
AG and Subsidiaries
Unaudited Financial Information
First Quarter 31.12.2007
All amounts in Euro millions, except where otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months |
|
|
3 Months |
|
|
3 Months |
|
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Dec 31 |
|
|
|
Q1 FY 2008 |
|
|
Q4 FY 2007 |
|
|
Q1 FY 2007 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
RESULTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales |
|
|
513 |
|
|
|
711 |
|
|
|
1,173 |
|
Cost of goods sold |
|
|
(927 |
) |
|
|
(818 |
) |
|
|
(823 |
) |
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit |
|
|
(414 |
) |
|
|
(107 |
) |
|
|
350 |
|
Research and development expense |
|
|
(110 |
) |
|
|
(110 |
) |
|
|
(97 |
) |
Selling, general and administrative expense |
|
|
(48 |
) |
|
|
(59 |
) |
|
|
(44 |
) |
Restructuring charges |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
Other operating income, net |
|
|
3 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(585 |
) |
|
|
(265 |
) |
|
|
209 |
|
Interest income, net |
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
Equity in earnings of associated companies |
|
|
2 |
|
|
|
14 |
|
|
|
37 |
|
Loss on associated company share issuance |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
Other non-operating income (expense), net |
|
|
2 |
|
|
|
(5 |
) |
|
|
5 |
|
Minority interests |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(589 |
) |
|
|
(255 |
) |
|
|
251 |
|
Income tax expense |
|
|
(9 |
) |
|
|
(10 |
) |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(598 |
) |
|
|
(265 |
) |
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share basic and diluted (in euro) |
|
|
(1.75 |
) |
|
|
(0.77 |
) |
|
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
509 |
|
|
|
746 |
|
|
|
1,053 |
|
Marketable securities |
|
|
237 |
|
|
|
265 |
|
|
|
148 |
|
Trade accounts receivable, net |
|
|
258 |
|
|
|
341 |
|
|
|
668 |
|
Inventories |
|
|
386 |
|
|
|
619 |
|
|
|
685 |
|
Deferred income taxes |
|
|
38 |
|
|
|
32 |
|
|
|
45 |
|
Other current assets |
|
|
240 |
|
|
|
254 |
|
|
|
282 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
1,668 |
|
|
|
2,257 |
|
|
|
2,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
2,146 |
|
|
|
2,186 |
|
|
|
2,097 |
|
Intangible assets, net |
|
|
138 |
|
|
|
143 |
|
|
|
143 |
|
Long-term investments |
|
|
594 |
|
|
|
628 |
|
|
|
633 |
|
Deferred income taxes |
|
|
151 |
|
|
|
147 |
|
|
|
148 |
|
Other assets |
|
|
19 |
|
|
|
20 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
4,716 |
|
|
|
5,381 |
|
|
|
5,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities |
|
|
68 |
|
|
|
77 |
|
|
|
232 |
|
Trade accounts payable |
|
|
704 |
|
|
|
756 |
|
|
|
763 |
|
Accrued liabilities |
|
|
146 |
|
|
|
147 |
|
|
|
152 |
|
Deferred income taxes |
|
|
5 |
|
|
|
5 |
|
|
|
15 |
|
Other current liabilities |
|
|
261 |
|
|
|
259 |
|
|
|
277 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
1,184 |
|
|
|
1,244 |
|
|
|
1,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
304 |
|
|
|
227 |
|
|
|
150 |
|
Pension liabilities |
|
|
25 |
|
|
|
25 |
|
|
|
27 |
|
Deferred income taxes |
|
|
26 |
|
|
|
23 |
|
|
|
31 |
|
Long-term accrued liabilities |
|
|
18 |
|
|
|
14 |
|
|
|
4 |
|
Other liabilities |
|
|
202 |
|
|
|
248 |
|
|
|
182 |
|
Minority Interest |
|
|
84 |
|
|
|
83 |
|
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,843 |
|
|
|
1,864 |
|
|
|
1,914 |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
2,873 |
|
|
|
3,517 |
|
|
|
4,008 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
|
4,716 |
|
|
|
5,381 |
|
|
|
5,922 |
|
|
|
|
|
|
|
|
|
|
|
Page 8 of 8 January 22, 2008
Qimonda
AG and Subsidiaries
Unaudited Financial Information
First Quarter 31.12.2007
All amounts in Euro millions, except where otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months |
|
|
3 Months |
|
|
3 Months |
|
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Dec 31 |
|
|
|
Q1 FY 2008 |
|
|
Q4 FY 2007 |
|
|
Q1 FY 2007 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
(158 |
) |
|
|
211 |
|
|
|
438 |
|
therein: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
163 |
|
|
|
170 |
|
|
|
161 |
|
Net cash used in investing activities |
|
|
(35 |
) |
|
|
(123 |
) |
|
|
(208 |
) |
therein: |
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds (purchases) of marketable securities |
|
|
24 |
|
|
|
(2 |
) |
|
|
(11 |
) |
Purchases of property, plant and equipment |
|
|
(190 |
) |
|
|
(278 |
) |
|
|
(221 |
) |
Net cash (used in) provided by financing activities |
|
|
(38 |
) |
|
|
36 |
|
|
|
(104 |
) |
therein: |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in short-term debt due Infineon |
|
|
|
|
|
|
|
|
|
|
(112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(598 |
) |
|
|
(265 |
) |
|
|
177 |
|
Interest income, net |
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before Interest (EBI) |
|
|
(599 |
) |
|
|
(268 |
) |
|
|
176 |
|
Income tax expense |
|
|
(9 |
) |
|
|
(10 |
) |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before Interest and Taxes (EBIT) |
|
|
(590 |
) |
|
|
(258 |
) |
|
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
509 |
|
|
|
746 |
|
|
|
1,053 |
|
Marketable securities |
|
|
237 |
|
|
|
265 |
|
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
Gross Cash position |
|
|
746 |
|
|
|
1,011 |
|
|
|
1,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current maturities |
|
|
68 |
|
|
|
77 |
|
|
|
232 |
|
Long-term debt |
|
|
304 |
|
|
|
227 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
Total financial debt |
|
|
372 |
|
|
|
304 |
|
|
|
382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash position |
|
|
374 |
|
|
|
707 |
|
|
|
819 |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
2,873 |
|
|
|
3,517 |
|
|
|
4,008 |
|
|
|
|
|
|
|
|
|
|
|
Capital Employed |
|
|
2,499 |
|
|
|
2,810 |
|
|
|
3,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
(158 |
) |
|
|
211 |
|
|
|
438 |
|
Net cash used in investing activities |
|
|
(35 |
) |
|
|
(123 |
) |
|
|
(208 |
) |
Net (proceeds) purchases of marketable securities |
|
|
(24 |
) |
|
|
2 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
(217 |
) |
|
|
90 |
|
|
|
241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS AND RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
|
(81 |
)% |
|
|
(15 |
)% |
|
|
30 |
% |
R&D as % of sales |
|
|
21 |
% |
|
|
15 |
% |
|
|
8 |
% |
SG&A as % of sales |
|
|
9 |
% |
|
|
8 |
% |
|
|
4 |
% |
EBI / Sales |
|
|
(117 |
)% |
|
|
(38 |
)% |
|
|
15 |
% |
EBIT Margin |
|
|
(115 |
)% |
|
|
(36 |
)% |
|
|
21 |
% |
Net income / Sales |
|
|
(117 |
)% |
|
|
(37 |
)% |
|
|
15 |
% |
Effective Tax Rate |
|
|
(2 |
)% |
|
|
(4 |
)% |
|
|
29 |
% |
Weighted Average Shares Outstanding (million) basic |
|
|
342 |
|
|
|
342 |
|
|
|
342 |
|
Sales / Equity |
|
|
0.7 |
|
|
|
0.8 |
|
|
|
1.2 |
|
Capital Turnover (Sales / Capital Employed) |
|
|
0.8 |
|
|
|
1.0 |
|
|
|
1.5 |
|
Net (loss) income / Equity ratio |
|
|
(83 |
)% |
|
|
(30 |
)% |
|
|
18 |
% |
ROCE (EBI / Capital Employed) |
|
|
(96 |
)% |
|
|
(38 |
)% |
|
|
22 |
% |
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: January 23, 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 |
|
|