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Infineon intensifies Qimonda clean up

Posted: 23 Apr 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Infineon investment? Qimonda assets sale? disposal deconsolidation?

Semiconductor and system solutions provider Infineon Technologies AG continues to prepare for the disposal and resulting deconsolidation of its investment in DRAM memory vendor Qimonda AG. The Infineon audit committee reaffirmed early this week the decision to reclassify the assets and liabilities of Qimonda into "Assets Held for Sale" in the consolidated balance sheet of Infineon as of Mar. 31, 2008.

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 1 billion euro (about $1.6 billion), which will be recorded in "Income (Loss) from Discontinued Operations" in the Q2 of the current fiscal year. The existing guidance on Ebit development for Infineon excluding Qimonda for Q2 of FY2008 and for the complete FY2008 remains unchanged.

Infineon has repeatedly communicated its goal of reducing its investment in Qimonda to below 50 percent 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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