EANS-Adhoc: ams AG ams reports strong growth for full year 2014 and positive
fourth quarter 2014 results; expects sequential revenue growth in first quarter
2015
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annual result
03.02.2015
Financial information for fiscal year 2014 and fourth quarter 2014
Unterpremstaetten, Austria (3 February 2015) - ams (SIX: AMS), a leading
worldwide manufacturer of high performance sensor and analog solutions, reports
record results for 2014 with strong growth in revenues and earnings. The success
of ams' consumer solutions for smartphones and mobile devices drove this
positive development resulting in the most successful year in company history.
For the first quarter 2015, ams expects further sequential growth contrary to
typical sector seasonality with expected revenues of EUR 145-150 million.
2014 full year revenues rose to EUR 464.4 million (USD 613.7 million), at the
same time gross margin increased to 56% (excluding acquisition-related
amortization). The full year operating (EBIT) margin also grew noticeably to
23%. Revenues for the fourth quarter 2014 were EUR 139.0 million, up 34%
year-on-year and 5% higher quarter-on-quarter. The gross margin for the fourth
quarter 2014, excluding acquisition-related amortization, reached 56% while the
operating (EBIT) margin was unchanged at 23% when compared to the previous year.
Financials
Group revenues for 2014 were EUR 464.4 million (USD 613.7 million), growing by
23% compared to EUR 377.8 million for 2013. In constant currency, full year
revenues increased by 22% compared to the previous year. Revenues for the fourth
quarter 2014 were EUR 139.0 million, growing by 34% from the EUR 103.5 million
recorded a year ago (26% in constant currency) and by 5% quarter-on-quarter.
Gross margin for the full year 2014 improved to 56%, excluding
acquisition-related amortization, and 55%, including acquisition-related
amortization, from 55% and 52% in 2013, respectively. This positive result was
mainly due to an improved product mix, economies of scale and efficiency
improvements. Gross margin for the fourth quarter 2014 was 56%, excluding
acquisition-related amortization, and 54%, including acquisition-related
amortization, unchanged from 56% and 54% in the same period 2013, respectively.
The result from operations (EBIT) for 2014 was EUR 105.4 million, or 23% of
revenues, increasing by 65% from EUR 63.9 million, or 17% of revenues, in 2013.
Investments in research and development amounted to EUR 77.0 million, or 17% of
revenues, in 2014 and were driven by an expansion of development activities to
support high value design-wins. The EBIT for the fourth quarter 2014 was EUR
31.4 million, or 23% of revenues, which is an increase of 30% compared to EUR
24.2 million in the fourth quarter 2013.
Net income for 2014 was EUR 97.5 million, up 60% from EUR 60.8 million in 2013.
Basic / diluted earnings per share for 2014 were CHF 1.74 / 1.67 or EUR 1.43 /
1.37 based on 68,022,953 / 71,010,831 shares (weighted average; 2013: CHF 1.11 /
1.07 or EUR 0.90 / 0.87 based on 67,241,566 / 69,956,124 shares, split adjusted
weighted average). Net income for the fourth quarter 2014 was EUR 28.8 million,
increasing by 23% from EUR 23.3 million for the same period 2013. Basic /
diluted earnings per share for the fourth quarter were CHF 0.51 / 0.48 or EUR
0.42 / 0.40 based on 68,460,041 / 71,450,861 shares (weighted average; 2013: CHF
0.42 / 0.41 or EUR 0.35 / 0.33 based on 67,513,360 / 70,515,341 shares, split
adjusted weighted average).
Cash flow from operations was EUR 130.2 million in 2014, an increase of 30%
compared to EUR 100.2 million in 2013. Cash and short term investments rose to
EUR 229.6 million on Decem-ber 31, 2014 from EUR 104.3 million at year-end 2013,
while net cash rose to EUR 45.0 million on December 31, 2014 (year-end 2013: EUR
44.2 million). Capital expenditures for 2014 were EUR 70.1 million compared to
EUR 47.1 million for 2013, particularly driven by investments to expand wafer
production capacity. The total backlog at December 31, 2014, excluding
consignment stock agreements, stood at a record level of EUR 131.3 million (EUR
119.8 million on Septem-ber 30, 2014 and EUR 76.6 million at year-end 2013). The
average number of group employees was 1,637 for fiscal year 2014, compared to
1,394 for 2013, and 1,731 for the fourth quarter 2014.
Based on the company's cash dividend policy stipulating the distribution of 25%
of net earnings, ams will propose a dividend of EUR 0.33 per outstanding share
for 2014.
Business
ams' business developed very positively in 2014 and was characterized by strong
growth particularly in the second half of the year. The significant increase in
group revenues was mainly due to the success of the company's consumer and
communications business which comprised about 64% of total revenues. A large
number of high-value design-wins in all business areas led to further strong
growth in ams' project pipeline. These successes highlight ams' leadership role
in the sensor and analog markets and offer an excellent basis for additional
meaningful growth in the coming years.
The company's Consumer & Communications business recorded impressive growth in
2014 which was predominantly driven by high volume product introductions for two
leading global smartphone OEMs. On the back of this success ams expanded its
market position as a major supplier of advanced sensor and analog solutions for
smartphones, tablet PCs and mobile device even further last year. Customer
design activities for ams products remained on a very high level throughout 2014
and to date.
ams' light sensor product area recorded the largest share of group revenues
again last year as ams remained the worldwide market leader in advanced light
sensors. ams holds a particularly strong position in the market for mobile
devices and is a respected partner for leading global smartphone and tablet PC
vendors given its technological edge.
The company's innovative gesture sensor solution combines high advanced gesture
sensing with RGB color sensing, proximity sensing, and mobile coupon redemption
in a very compact module. The solution started shipping in high volumes at the
end of the first quarter 2014 to consumer OEMs including a worldwide smartphone
leader. With the increasing market acceptance of gesture recognition ams sees
further attractive growth opportunities in this market going forward. ams also
shipped very high volumes of other ambient light and proximity sensors for a
wide variety of devices last year, including a growing share of RGB color
sensors for sophisticated display management.
ams' wireless business for RFID and NFC solutions developed into an important
growth driver for the company last year, in line with expectations. ams' NFC
antenna booster solution, which is currently unrivalled, started shipping in
very high volumes into a new global smartphone platform for a worldwide leader
in smartphones and tablet PCs at the beginning of the third quarter 2014. The
NFC booster ensures reliable and simple NFC mobile payments for smartphones and
other devices and plays an important role in NFC implementations setting new
standards for performance and user experience. ams holds a strong market
position in NFC focusing on continuous innovation and is convinced that the
market success of its solutions will lead to further significant growth of this
product line in 2015 and the coming years.
The MEMS microphone interface product area performed well in 2014 with very high
unit shipments. As the clear market leader ams concentrates on advanced audio
solutions for mobile devices such as smartphones and tablet PCs in a dynamic
market environment. At the same time, ams was able to attractively position its
innovative power management solutions for mobile devices in customer designs
last year and sees interesting growth opportunities in new applications besides
existing customers.
ams' industrial, medical and automotive business also developed positively in
2014 and leveraged its wide range of end markets, customers, and product lines
to strengthen its market position.
In its industrial business ams saw solid growth in 2014 which was mainly driven
by an attractive demand environment in the industrial end market. As a leading
supplier of sensors and sensor interfaces, ams benefitted from its top tier
position in the markets for industrial and factory automation, building control,
and industrial sensors which recorded growth in 2014. Based on its broad
portfolio of advanced sensor solutions for a variety of applications ams is a
valued partner to globally successful OEMs and regarded as a technology
specialist focused on innovation. As a result, ams was able to expand its market
position further last year.
ams' medical business showed a positive development in 2014 and continued to
demonstrate ams' impressive analog expertise through highly advanced sensor and
sensor interfaces. In the core area Medical Imaging for computed tomography
(CT), digital X-ray, ultrasound and mammography, the company's high resolution
imaging sensors define the state-of-the-art offering significantly improved
diagnostics and additional advantages for patients and doctors. ams expanded its
medical business in Asia last year adding attractive design-wins and new
customers for specialty sensor solutions. ams' long-term oriented medical
business is characterized by strategic partnerships with leading medical systems
OEMs.
ams' automotive business recorded another year of robust growth in 2014 driven
by healthy demand trends in the automotive market and new vehicle platform
launches. ams' high performance sensor and position measurement solutions and
innovative solutions for safety systems, such as collision avoidance, and
battery power management are successful worldwide making ams a valued partner
for leading system suppliers. ams grew its extensive project pipeline last year
and is well positioned to benefit strongly from the continuous rise in sensors
and fast adoption of new sensor technologies in vehicles. ams' dedicated
specialty foundry business for analog and mixed-signal ICs also performed well
in 2014 and contributed attractively to the company's results.
ams' in-house manufacturing capacity was fully utilized throughout 2014. To
support growth and the future development of the company ams took a significant
investment in hand last year to expand its wafer fabrication facility at the
company's headquarters. The first part of this capacity expansion was
successfully completed and ramped in the second half of 2014 while the second
part of the expansion is already underway and will be completed this year.
Concurrent with the capacity expansion, ams invested into the 180 nm technology
node which will be in production at the company's wafer fab this year. ams has
also started an expansion of its test facility in the Philippines to prepare for
expected growth in the future.
ams grew its global customer base once again last year adding a large number of
new customers particularly in Asia. Selective investments into sales and
technical support in Asia, Japan and the U.S. improved market penetration in
these important regions and buttressed ams' growth strategy.
Outlook
Based on currently available information, ams expects its business to develop
positively in the current year and record further growth in revenues and
earnings.
With reference to the pre-announcement on the first quarter 2015 published
January 19, 2015 ams expects revenues for the first quarter 2015 to show
sequential growth in contrast to typical sector seasonality and to reach EUR
145-150 million. At the same time, and despite continued R&D investments for
further growth, ams anticipates strong profitability to continue with first
quarter operating margin expected to increase slightly from fourth quarter 2014.
Additional financial information for fiscal year 2014 and the fourth quarter
2014 is available on the company website at
www.ams.com/eng/Investor/Financial-Reports
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: AT0000A18XM4
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language: English