EANS-Adhoc: ams AG ams reports second quarter and first half results
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Mid Year Results/6-month report
22.07.2013
Key financial data for the second quarter and first half 2013
Unterpremstaetten, Austria (22 July 2013) - ams (SIX: AMS), a leading provider
of high performance analog ICs and sensors, recorded sequential revenue growth
in the second quarter 2013, testifying to the company's strong market position
in high performance sensors and analog solutions. Currently, ams is preparing to
realize a full multi-year pipeline of projects and design-ins going forward.
Financial results
Second quarter group revenues were EUR 91.2 million, up 8% sequentially compared
to the first quarter and decreasing 5% from EUR 96.1 million in the same quarter
2012. Group revenues for the first half of 2013 were EUR 176.1 million,
decreasing 6% from EUR 186.8 million recorded in the first half of 2012. On a
constant currency basis, second quarter revenues were 4% lower compared to the
second quarter last year and first half revenues were 5% lower compared to the
first half of 2012.
In the second quarter, gross margin was 54% excluding acquisition-related
amortization and 51% including acquisition-related amortization, compared to 54%
and 52% respectively, in the same quarter 2012. For the first half of 2013,
gross margin was 54% excluding acquisition-related amortization and 51%
including acquisition-related amortization, compared to 54% and 51%
respectively, in the first half of 2012.
The result from operations (EBIT) for the second quarter was EUR 9.1 million or
10% of revenues, a decrease of 57% from EUR 21.3 million in the second quarter
of 2012. Adjusted for a one-time severance payment for a previous management
board member of approximately EUR 1.2 million and a one-time equity investment
write-down of EUR 1.8 million, EBIT was EUR 12.1 million or 13% of revenues for
the second quarter. This result reflects ams' continuing upfront investments
into R&D resources for existing pipeline projects and sales and marketing
resources for dedicated customer support. For the first half of 2013, reported
EBIT was EUR 19.6 million compared to EUR 39.6 million in the same period last
year.
The net result for the second quarter was EUR 9.0 million compared to EUR 19.7
million in the same period last year. Basic and diluted earnings per share for
the quarter were CHF 0.83/0.79 or EUR 0.67/0.64 based on 13,358,739/13,932,770
shares (basic/diluted; weighted average), com-pared to CHF 1.87/1.77 or EUR
1.56/1.48 for the second quarter 2012. The net profit for the first half year
2013 was EUR 18.9 million, equivalent to CHF 1.73/1.66 or EUR 1.41/1.35 per
share (basic/diluted) based on 13,384,672/14,008,626 shares (basic/diluted;
weighted average), com-pared to EUR 38.9 million, i.e. CHF 3.68/3.53 or EUR
3.06/2.93 per share (basic/diluted), for the same period last year.
Operating cash flow for the second quarter was EUR 23.2 million compared to EUR
24.8 million in the second quarter last year, while operating cash flow for the
first half was EUR 36.9 million compared to EUR 49.4 million in the first half
year 2012. Total backlog on June 30, 2013 (excluding consignment stock
agreements) was EUR 82.4 million compared to EUR 77.4 million at the end of the
first quarter and EUR 106.8 million on June 30, 2012.
Business overview
ams' business performed well in the second quarter and first half of 2013. ams
continues to combine expanding OEM relationships with a strong, growing and
differentiated product portfolio to serve customers' current and future
technology needs.
In its Consumer & Communications business, ams saw shipments of its light
sensor, lighting and power management ICs to handset and mobile device OEMs
remain at attractive levels despite a slower development of end market volume
demand. Best-in-class integrated optical sensor solutions continue to make ams a
key supplier to major smartphone and mobile device OEMs world-wide.
ams sees strong customer demand for new sensor technologies in smartphones and
mobile devices, which will enable attractive functions to be incorporated in
next-generation models. Offering tangible user benefits, these may include new
applications in areas such as user device interaction, navigation, or mobile
transactions. The solution enabling mobile couponing via optical sensor
technology is only one example of the innovation ams can bring to smartphones
and mobile devices. MEMS microphone driver shipments developed positively in the
first half of 2013 with new mobile device platforms continuing to rely on ams'
outstanding technology to support low noise and highest sound quality.
In ams' wireless business for NFC and RFID, design-in and development activities
continue at high levels for the company's NFC solutions including front ends,
antenna boost and peer-to-peer capabilities. ams' NFC solutions are strongly
positioned and well known in the market for their technical capabilities
supporting seamless mobile device transactions. ams offers high sensitivity NFC
performance in the smallest form factors available to enable a high quality user
experience for smartphone NFC transactions. Shipments of other wireless products
developed positively in the quarter albeit at a less intensive rate than
previously expected. ams continues to see strong profitable growth in NFC going
forward which is supported by a variety of active projects and strong OEM
engagements and commitments.
The company's industrial and medical business again offered a very good
performance in the second quarter and first half. ams' differentiated sensor and
sensor interface products and solutions are successful in a variety of
industrial end markets based on their technological advances and high
performance in demanding applications. This business benefitted from a more
attractive market environment in the first half of the year. ams' medical
business again posted positive results driven by the company's digital imaging
solutions, particularly for leading edge computed tomography (CT), mammography
and ultrasound.
ams' automotive business continued its positive development in the first six
months, driven by the success of the company's sensor and sensor interface
solutions and new platform launches. ams expects its automotive business to show
further growth going forward given its focus on high performance products for
critical systems and the ongoing expansion of electronic and sensor systems in
vehicles. ams' specialty foundry business again contributed positively to the
results in the first half. In operations, the investment into the advanced 3D
packaging line at ams' headquarters remains fully on track and the line is
expected to ramp into production at the end of this year.
The company's market position in high performance analog solutions continues to
be driven by its full pipeline of development projects and design-ins despite
the announced delay in certain customer ramp-ups for new Consumer &
Communications products. ams has added further high quality design-ins for
long-term projects in the second quarter and sees continuing high levels of
design-in and development activities around its products. ams' ongoing
investments into R&D and customer sales support are fully supported by exciting
growth opportunities in the years to come.
ams has also experienced no negative impact on customer relationships or on its
project pipeline situation following the management board change during the
quarter given the company's broad and experienced management team. The search
process for the envisaged expansion of the man-agement board is ongoing.
Outlook
As previously announced ams is adapting its outlook presentation with a focus on
the upcoming quarter to better reflect the significant revenue share of Consumer
& Communications and the related market characteristics. For the third quarter
2013, ams expects revenues of EUR 94-98 million driven by new product ramp-ups.
ams also expects gross margin to increase quarter-on-quarter in the third
quarter and EBIT margin to expand by more than 400 bps on a sequential basis.
While ams sees a flattish revenue development for 2013 compared to the previous
year, ams reiterates its strong longer term outlook for growth in revenues and
profitability in the coming years. This expectation is driven by ams'
significant pipeline of products and design-ins across the markets for
smartphones, tablet PCs, mobile devices, industrial, medical, and automotive
systems.
The company's half year report 2013 including additional financial information
is available on the company website at
http://www.ams.com/eng/Investor/Financial-Reports
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About ams
ams develops and manufactures high performance analog semiconductors that solve
its customers' most challenging problems with innovative solutions. ams'
products are aimed at applications which require extreme precision, accuracy,
dynamic range, sensitivity, and ultra-low power consumption. ams' product range
includes sensors, sensor interfaces, power management ICs and wireless ICs for
customers in the consumer, industrial, medical, mobile communications and
automotive markets.
With headquarters in Austria, ams employs over 1,300 people globally and serves
more than 7,800 customers worldwide. ams is listed on the SIX Swiss stock
exchange (ticker symbol: AMS). More information about ams can be found at
www.ams.com.
Further inquiry note:
Moritz M. Gmeiner
Director Investor Relations
Tel: +43 3136 500-31211
Fax: +43 3136 500-931211
Email: investor@ams.com
end of announcement euro adhoc
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issuer: ams AG
Tobelbader Strasse 30
A-8141 Unterpremstaetten
phone: +43 3136 500-0
FAX: +43 3136 500-931211
mail: investor@ams.com
WWW: www.ams.com
sector: Technology
ISIN: AT0000920863
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English