EANS-Adhoc: ams AG ams reports solid full year and positive fourth quarter
2013 results; sees seasonality and OEM program shifts impacting first quarter
2014
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annual result/quarterly report
04.02.2014
Financial information for fiscal year 2013 and fourth quarter 2013
Unterpremstaetten, Austria (4 February 2014) - ams (SIX: AMS), a leading
worldwide manufacturer of high performance sensor and analog solutions, reports
solid results for 2013 showing a slight year-on-year decrease in revenues and a
larger impact on operating profitability. This was due to a slower revenue
development in ams' consumer and communications business which the strong
performance of the company's industrial, medical and automotive business could
not offset. Focusing on advanced sensors, sensor interfaces, power management
and wireless ams gained record design-wins in 2013 and is strongly positioned to
return to growth in revenues and profitability. For the first quarter 2014,
however, ams expects noticeable quarter-on-quarter seasonality including impacts
from ramp-up shifts towards the end of the quarter by Asian OEMs.
2013 full year revenues were EUR 377.8 million (USD 502.1 million) while gross
margin, excluding acquisition-related amortization, remained unchanged at 55%
and the operating (EBIT) margin decreased to 17%. Revenues for the fourth
quarter 2013 were EUR 103.5 million, up 6% year-on-year and 5% higher
quarter-on-quarter. The gross margin, excluding acquisition-related
amortization, for the fourth quarter 2013 was 56% while the operating (EBIT)
margin improved to 23% when compared to the previous year.
Financials
Group revenues for 2013 were EUR 377.8 million (USD 502.1 million), a decrease
of 3% compared to EUR 387.6 million for 2012. In constant currency, full year
revenues were unchanged compared to the previous year. Revenues for the fourth
quarter 2013 were EUR 103.5 million, an increase of 6% from the EUR 97.5 million
recorded in the last quarter 2012 (10% in constant currency) and an increase of
5% quarter-on-quarter.
Gross margin for the full year 2013 came to 55%, excluding acquisition-related
amortization, and 52%, including acquisition-related amortization, unchanged
from 55% and 52% in 2012, respective-ly. This positive result was mainly due to
an improved product mix and manufacturing efficiencies. Gross margin for the
fourth quarter 2013 was 56%, excluding acquisition-related amortization, and
54%, including acquisition-related amortization, compared to 56% and 53% in the
same period 2012, respectively.
The result from operations (EBIT) for 2013 was EUR 63.9 million, or 17% of
revenues, down from EUR 84.8 million or 22% of revenues in 2012. Investments in
research and development amounted to EUR 68.5 million, or 18% of revenues, and
were driven by an expansion of development re-sources to support major
design-wins. The EBIT for the fourth quarter 2013 was EUR 24.2 million, or 23%
of revenues, increasing by 24% from EUR 19.6 million in the fourth quarter 2012.
Net income for 2013 was EUR 60.8 million, down from EUR 81.9 million in 2012.
Basic / diluted earnings per share for 2013 were CHF 5.56 / 5.34 or EUR 4.52 /
4.35 based on 13,448,313 / 13,991,225 shares (2012: CHF 7.67 / 7.30 or EUR 6.37
/ 6.06). Net income for the fourth quarter 2013 was EUR 23.3 million, increasing
by 26% from EUR 18.5 million for the same period 2012. Basic / diluted earnings
per share for the fourth quarter were CHF 2.12 / 2.03 or EUR 1.73 / 1.65 based
on 13,502,672 / 14,103,068 shares (2012: CHF 1.69 / 1.60 or EUR 1.40 / 1.32).
Cash flow from operations was EUR 100.2 million in 2013, decreasing from EUR
124.8 million in 2012. Cash and short term investments increased to EUR 104.3
million on December 31, 2013 from EUR 86.8 million at year-end 2012, while net
cash rose to EUR 44.2 million on December 31, 2013 (year-end 2012: EUR 6.0
million). Capital expenditures for 2013 were EUR 47.1 million compared to EUR
31.9 million for 2012 given the company's investment in an advanced 3D packaging
line. The total backlog at year-end 2013, excluding consignment stock
agreements, was EUR 76.6 million due to shortened lead times for upcoming
product ramp-ups (EUR 91.2 million on September 30, 2013 and EUR 90.9 million at
year-end 2012). The average number of group employees was 1,394 for fiscal year
2013, compared to 1,282 for 2012, and 1,417 for the fourth quarter 2013.
Based on the company's cash dividend policy stipulating the distribution of 25%
of net earnings, ams will propose a dividend of EUR 1.04 per outstanding share
for 2013.
Business
ams' business performance in 2013 was impacted by a slower-than-expected
development of the company's consumer and communications business which led to a
slight decrease in group revenues compared to the previous year. At the same
time, ams was able to gain a record number and value of design-wins with major
OEMs last year. This achievement demonstrates ams' leadership in high
performance sensor solutions and analog ICs and creates a strong foundation for
growth going forward.
The company's Consumer & Communications business recorded a decrease in revenues
in 2013 which resulted mainly from delayed customer projects and certain base
effects. ams launched several sensor innovations and new technical solutions
last year which strengthened its market position as a major supplier to leading
smartphone, tablet PC and mobile device OEMs. Consequently,
customer design activities for ams products remained on a high level through
2013 and to date.
ams continued to be successful as the leading provider of advanced light sensors
worldwide and shipped very high volumes of ambient light and proximity sensors
for a wide variety of consumer devices last year. ams is seeing a clear market
trend towards RGB color sensors for ambient light analysis enabling
sophisticated display management in smartphones and tablet PCs.
Creating new content opportunities at mobile device vendors, ams launched an
innovative gesture sensor solution last year. ams combines gesture sensing with
RGB color sensing, proximity sensing, and mobile coupon redemption in a very
compact module offering impressive sensor performance in a minimized footprint.
ams has started high volume production for its lead gesture sensor products
supporting new platform ramps by several major Asian OEMs, with shipments
starting this quarter. Based on multiple design wins, ams expects to benefit
strongly from the adoption of gesture sensing in smartphones.
MEMS microphone interface shipments increased meaningfully again last year to
around 1.6 billion units reflecting continuing device penetration and growth in
smartphone and tablet PC volumes. ams continues to be the clear market leader in
this area which is characterized by high market dynamics and active competition.
Together with further improvements in audio quality, ongoing cost optimizations
remain a key positioning aspect in this market. ams' power management solutions
benefitted from the growth in compact outdoor video systems while the support of
a mobile graphics processor vendor's recent and upcoming platforms offers
attractive device opportunities.
ams' wireless business for RFID and NFC solutions and mobile applications showed
a positive development last year but nevertheless fell short of expectations.
Particularly the market for NFC mobile payment hardware solutions did not
provide the expected momentum for ams in 2013. This was mainly due to
customer-specific factors. ams remains fully convinced that its innovative
antenna booster solution for NFC mobile transactions together with its world
class NFC expertise will drive substantial mobile device-based growth for the
company in the foreseeable future.
ams' industrial, medical and automotive business recorded positive results in
2013 given the supportive development of end markets and ams' broad range of
customers and applications.
Industrial product lines performed very well last year showing considerable
improvements over 2012. As a leading supplier of sensors and sensor interfaces
for a wide variety of applications in industrial automation and related areas,
ams benefitted from the brightening macroeconomic outlook over the course of
2013. The positive demand trend in industrial end markets translated into
attractive business momentum for ams' industrial solutions. Consequently, ams
was able to expand its market position as a technology specialist for industrial
sensors and position measurement.
ams' medical business continued to develop positively in 2013. Highly advanced
sensor and sensor interface solutions are the foundation of ams' medical
portfolio, particularly in the core area Medical Imaging for computed tomography
(CT), digital X-ray, ultrasound and mammography. ams' high resolution CT imaging
sensors define what is technically feasible and create significant performance
advantages for the benefit of patients. In this long-term oriented environment,
ams works in strategic partnership with global leaders in medical devices and
systems and was able to add a number of attractive design-wins last year.
ams' automotive business recorded strong growth in 2013 driven by new vehicle
platform launches and a sustained positive momentum in the end market. ams saw a
significant increase in shipments last year helped by the increasing penetration
of sensors and electronics in vehicles. ams' automotive portfolio continues to
be focused on high performance sensor and position measurement solutions,
innovative safety systems such as laser-based collision avoidance, and battery
power management. ams achieved major automotive design-wins in 2013, above all
in Japan and other Asian markets. These wins highlight ams' position at leading
system suppliers and create a strong pipeline for the coming years. ams'
dedicated specialty foundry business again provided an attractive contribution
to the company's results.
ams' global customer base expanded last year with significant additions in the
Asia/Pacific region in particular. Through ongoing selective investments into
its sales and support network in Asia and the U.S. ams continues to improve
customer reach and penetration in these important markets.
ams recorded full capacity utilization for its in-house manufacturing throughout
2013. Given the company's full product pipeline, ams has decided to implement
certain additional investments in 2014 to optimize capacity at its wafer fab and
grow test capacity in anticipation of new high volume business. These additional
investments of EUR 10-15 million in 2014 will also enable ams to take full
advantage of 0.18µm CMOS process technology going forward.
To support its expected future growth and capacity needs, ams has started an
internal project to identify suitable additional wafer fab assets outside Europe
which are able to enhance ams' successful manufacturing model.
The company's investment in an advanced 3D packaging line at its wafer fab has
been completed as planned. ams' proprietary TSV (Through Silicon Via) technology
offers considerable advantages for light sensor packaging and substantial cost
benefits from material savings and the insourcing of packaging process steps.
This will allow ams to address highly price-sensitive segments of the light
sensor market at attractive terms. The 3D packaging line is now undergoing
pre-production flow optimization and final qualifications, after which ams
expects mass production of TSV optical sensors to start around mid-year 2014.
Pursuing its strategic focus on sensor solutions and innovation, ams sees
attractive opportunities to expand the scope of its sensor expertise to address
exciting new applications. ams is therefore actively evaluating further
additions to its sensor technology portfolio.
Outlook
Based on currently available information, ams sees significant new product ramps
for major consumer and other OEMs in 2014 with a bias towards the second half of
the year. These are expected to result in attractive new revenue streams and
will be driving ams' expected positive business and margin development for the
future.
Despite this strong outlook for revenue and profitability growth, ams expects
the first quarter 2014 to show noticeable quarter-on-quarter seasonality
including impacts from ramp-up shifts towards the end of the quarter by Asian
customers. Revenues for the first quarter 2014 are expected to reach EUR 80-85m;
at the same time, ams anticipates robust gross margins to result in better
operating profitability than last year's first quarter.
Additional financial information for fiscal year 2013 and the fourth quarter
2013 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: AT0000920863
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English