Unterpremstaetten, Austria (22 October, 2012) - ams (SIX: AMS), a leading worldwide designer and manufacturer of high performance analog ICs for consumer & communications, industry & medical, and automotive applications, showed continued revenue growth and a significant increase in profitability in the third quarter of 2012, as the company expands its market position in high performance applications for customers worldwide. Confirming its guidance for 2012, ams expects full year revenue growth of 40% year-on-year with full year EBIT margins of more than 20%.
Third quarter group revenues grew to EUR 103.3 million, up 27% compared to the same quarter 2011 (16% in constant currency terms) and 8% quarter-on-quarter. Gross margin was 56%, excluding acquisition-related amortization, and 53%, including acquisition-related amortization, compared to 53%, excluding acquisition-related amortization, and 50%, including acquisition-related amortization, in the third quarter 2011.
The result from operations (EBIT) for the third quarter increased to EUR 25.5 million, up 96% from EUR 13.0 million in the same period 2011. The third quarter net result was EUR 24.5 million compared to EUR 9.5 million in the same period 2011 and basic / diluted earnings per share were CHF 2.30 / 2.17 or EUR 1.91 / 1.81 (CHF 0.87 / 0.86 and EUR 0.74 / 0.73 in the third quarter 2011). Total backlog, excluding consignment stock agreements, was EUR 90.6 million on September 30, 2012 (EUR 106.8 million on June 30, 2012 and EUR 89.1 million on September 30, 2011). Operating cash flow increased to EUR 36.1 million compared to EUR 20.9 million in the third quarter 2011.
ams’ business saw a strong performance in the third quarter driven by its differentiated portfolio of high performance analog products and growing OEM and distribution demand in key markets.
In Consumer & Communications, strong growth in smartphone and tablet PC applications continued as a result of customers’ market success. ams’ light sensor products are shipping in very high volumes to market-leading OEMs for major global platforms and models. The company’s MEMS microphone IC business also continued to expand in the quarter. OEM interest for ams’ high performance power management solution for a leading graphics processor vendor and new sensor technologies for mobile devices remains at high levels creating new opportunities in future designs. ams’ wireless business for RFID and NFC shows dynamic growth in emerging applications as the company is continuing volume shipments of its innovative antenna booster solution for NFC mobile payment and winning new designs.
To further enhance its successful NFC offering and technology leadership in this exciting market, ams has entered into an agreement to acquire 100% of the shares in IDS, a global design leader for highly-integrated low-power RFID IC solutions and IP for HF and UHF applications. The IDS group, comprising IDS d.o.o. (Slovenia) and IDS IP Holding AG with its 100% subsidiary IDS Microchip AG (both in Switzerland), has approximately 20 employees. The parties to the transaction, which is expected to close within the next twelve weeks subject to certain approvals and conditions, have agreed to keep the consideration confidential. ams has worked closely with IDS over the last several years and plans to fully integrate IDS’s activities into its existing wireless business following the closing. The addition of IDS solidifies ams’ strong R&D and IP position in the authentication and payment markets where the company offers the smallest form factors, the lowest power consumption and the highest sensitivity.
In its industrial and medical businesses, ams recorded positive results based on its broad portfolio of advanced sensor and sensor interface solutions and wide variety of end markets. The industrial sector remains influenced by inconsistent demand patterns in some markets, while the company’s innovative medical imaging sensor solutions continue to drive its customers’ market success. ams’ automotive business performed well driven by the company’s growing presence in critical sensor applications, despite a more challenging environment in the global automotive sector.
Based on currently available information, ams fully confirms its 2012 revenue guidance and expects full year revenue growth of 40% compared to 2011, with EBIT margins exceeding 20% for the full year 2012. This positive development is particularly driven by ams’ expanding business in the fast-growing markets for smartphones, tablet PCs, and other mobile devices. Design activities across markets remain at record levels as a growing number of OEMs rely on ams’ high performance products to solve their analog challenges. Providing a first indication for the coming year, ams expects further double-digit revenue growth in 2013 compared to the current year.