EANS-Adhoc: ams AG ams reports second quarter results with revenues in upper
half of guidance range reflecting demanding market environment; third quarter
expected revenues show sequential growth at improved operating margin;
acquisition of CCMOSS ...
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Financial Figures/Balance Sheet/6-month report
25.07.2016
Key financial data for the second quarter and first half 2016
Premstaetten, Austria (25 July 2016) - ams (SIX: AMS), a leading worldwide
manufacturer of high performance sensor and analog solutions, reports second
quarter 2016 revenues in the upper half of its guidance range which reflects the
demanding market environment. For the third quarter 2016, ams expects sequential
revenue growth to EUR 146-153 million at an improved operating margin compared
to the second quarter. ams completed the acquisition of CCMOSS in the second
quarter creating the global technology leader in gas and infrared sensing and
additionally concluded a smaller acquisition in color and spectral sensing
focused on industrial and medical markets.
Second quarter group revenues were EUR 132.4 million, down 4% sequentially
compared to the first quarter and decreasing 22% from EUR 169.5 million in the
same quarter 2015. Group revenues for the first half of 2016 were EUR 269.6
million, down 17% compared to EUR 322.9 million recorded in the first half of
2015. On a constant currency basis, second quarter revenues were 20% lower
compared to the second quarter last year with first half revenues 16% lower
compared to the first half of 2015.
In the second quarter, adjusted gross margin (excluding acquisition-related and
share-based compensation costs) remained high at 56% with IFRS reported gross
margin (including acquisition-related and share-based compensation costs) at
53%, compared to 56% and 54% respectively, in the same quarter 2015. In the
first half of 2016, adjusted gross margin (excluding acquisition-related and
share-based compensation costs) stood at 57% and IFRS reported gross margin
(including acquisition-related and share-based compensation costs) at 54%,
compared to 56% and 54% respectively, in the first half of 2015.
The adjusted result from operations (EBIT) (excluding acquisition-related and
share-based compensation costs) for the second quarter was EUR 24.4 million or
18% of revenues in line with previous expectations, decreasing from EUR 49.0
million in the same period 2015. The IFRS reported result from operations (EBIT)
(including acquisition-related and share-based compensation costs) for the
second quarter was EUR 16.7 million or 13% of revenues, down from EUR 44.6
million in the same period 2015. This expected decrease reflects negative
operational leverage effects from lower revenues as well as a higher run rate of
R&D expenses for future programs. For the first half of 2016, the adjusted EBIT
(excluding acquisition-related and share-based compensation costs) was EUR 52.6
million, down from EUR 92.0 million in the same period 2015, and the IFRS
reported EBIT (including acquisition-related and share-based compensation costs)
was EUR 36.4 million, down from EUR 82.8 million in the first half year 2015.
The net result for the second quarter was EUR 19.6 million compared to EUR 41.8
million in the same period last year. Basic and diluted earnings per share were
CHF 0.32/0.31 or EUR 0.29/0.28 based on 68,085,043/70,016,054 shares
(basic/diluted; weighted average) compared to CHF 0.63/0.61 or EUR 0.61/0.58 for
the second quarter 2015 based on 68,948,844/71,639,611 shares (basic/diluted;
weighted average). The net profit for the first half year 2016 was EUR 33.2
million, equivalent to CHF 0.53/0.52 or EUR 0.49/0.47 per share (basic/diluted)
based on 68,321,871/70,388,158 shares (basic/diluted; weighted average),
compared to EUR 84.0 million, i.e. CHF 1.28/1.23 or EUR 1.22/1.17 per share
(basic/diluted) based on 68,792,636/71,560,877 shares (basic/diluted; weighted
average), for the same period last year.
Operating cash flow for the second quarter was EUR 7.3 million compared to EUR
33.7 million in the second quarter last year, while operating cash flow for the
first half was EUR 14.8 million compared to EUR 72.3 million in the first half
year 2015. Total backlog on June 30, 2016 (excluding consignment stock
agreements) was EUR 146.6 million compared to EUR 126.2 million at the end of
the first quarter and EUR 133.3 million on June 30, 2015.
ams' business performed to expectations in a more demanding market environment
in the second quarter and first half of 2016, particularly in the consumer and
smartphone markets. ams' results demonstrate the advantages of its model and the
attractiveness of the company's balanced portfolio of consumer and non-consumer
businesses.
ams' consumer and communications business showed a solid performance in the
second quarter and first half despite a challenging situation in the consumer
market which continued in the second quarter. The development of the business
was again driven by ams' range of high performance light sensor solutions. Run
rates for ams' portfolio of intelligent light sensors at leading consumer and
smartphone OEMs remained high but were in total lower year-on-year, in line with
expectations. This included ambient light sensing solutions, combination
modules, and highly-integrated multi-function modules for successful mobile
device platforms.
ams is seeing traction for its next generation of mobile device light sensors
with smaller volume shipments already underway. Other product lines that ams
ships into major device vendors' products continued to support the performance
of the company's consumer business. ams' audio business performed well in the
first half of the year and ams has identified significant opportunities for its
ANC noise cancellation solution targeting high volume in-box smartphone
accessories.
ams' industrial, medical, and automotive businesses performed to expectations in
the second quarter and first half. ams is a key supplier to a broad base of
industrial OEMs globally where ams enables a wide range of high value industrial
sensor applications through its differentiated sensor and sensor interface
solutions. Demand patterns in some of ams' industrial end markets appear less
consistent as customers experience end market and macroeconomic uncertainty. At
the same time, environmental sensor design-in efforts remain on track.
ams' medical business again recorded attractive results driven by digital
imaging sensor solutions for advanced computed tomography (CT), digital X-ray,
and mammography where ams offers diagnostic benefits to global OEMs. Focused on
differentiated sensor and sensor interface solutions, ams' automotive business
continued to perform to expectations in the second quarter. ams' automotive
sensor and analog expertise aligns with major automotive trends and supports
sensor-driven applications including advanced driver assistance, position
sensing, and level and chassis control. ams' specialty analog foundry business
also contributed attractively to the company's results in the first half.
In the second quarter, ams completed the acquisition of Cambridge CMOS Sensors
Ltd (CCMOSS), the technology leader in micro hotplate structures for gas and
infrared sensing, which makes ams the clear leader in gas and infrared sensor
technology worldwide. CCMOSS' gas sensing MEMS structures on CMOS wafers allow
the creation of complete monolithically integrated CMOS sensor ICs that offer
high cost-efficiency, low power consumption, small footprint and the ability to
integrate additional sensor modalities like relative humidity, temperature, and
pressure. CCMOSS' hotplate expertise is highly synergetic with ams' technology
leadership in MOX gas sensing materials to detect gases like CO, NOx, and VOCs
for volume applications in the automotive, industrial, medical, and consumer
markets.
CCMOSS additionally offers industry-leading IR technology comprising high
performance IR radiation sources and detectors. Fully complementary to ams'
spectral sensing strategy for next generation optical sensor technologies, this
portfolio enables miniaturized sensor implementations and efficient integration
for applications including CO2 gas sensing and human presence detection. CCMOSS,
which was founded in 2008 and is located in Cambridge, UK, with 33 employees,
strongly enhances ams' portfolio of products and technologies for the
environmental sensor market and creates substantial growth opportunities in the
coming years.
ams also concluded a smaller strategic transaction recently acquiring the color
and spectral sensing systems specialist MAZeT GmbH for an undisclosed amount in
cash. Focused on industrial and medical applications, MAZeT offers very strong
system and application know-how in advanced color and spectral sensing and
outstanding optical engineering expertise. MAZeT's capabilities include IC and
filter design as well as hardware and software system development with current
applications including airplane interior lighting, agricultural sensors, and
medical skin lesion analysis. The company also has a legacy business acting as
module supplier to its previous industrial shareholders. Based in Jena, Germany,
which is a global center of excellence in optical technologies, MAZeT is
profitable and has around 80 employees. The addition of MAZeT complements ams'
existing strengths in emerging optical sensor technologies and creates exciting
new product and application opportunities for spectral sensing in the
automotive, industrial, and medical end markets.
In operations, ams is realizing further accelerated investments into optical
filter deposition equipment to prepare for the expected customer uptake of
latest generation light sensor products and is implementing investments for
other equipment to support upcoming revenue opportunities from its pipeline.
Based on current information, total capital expenditures for 2016 are now
expected above EUR 80 million to support these capacity needs.
For the third quarter 2016, ams sees positive momentum in its consumer business
resulting in quarter-on-quarter group revenue growth while demand and
macroeconomic uncertainties in other end markets continue. Based on available
information and a current USD/EUR exchange rate of 1.10, ams expects third
quarter revenues to grow sequentially to EUR 146-153 million. At the same time,
ams anticipates attractive gross margin profitability to continue in the third
quarter. Adjusted gross margin (excluding acquisition-based and share-based
compensation costs) is expected at a stable or slightly lower level than for the
second quarter reflecting the expected business mix. The adjusted operating
margin for the third quarter (excluding acquisition-based and share-based
compensation costs) is expected to show a sequential improvement to around
18-20%.
Particularly looking towards 2017 and beyond, ams confirms its strong and
expanded revenue and development pipeline which fully supports ams' growth plans
for the coming years, based on available information.
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about ams
ams is a global leader in the design and manufacture of advanced sensor
solutions and analog ICs. Our mission is to shape the world with sensor
solutions by providing a seamless interface between humans and technology.
ams' high-performance analog products drive applications requiring extreme
precision, dynamic range, sensitivity, and ultra-low power consumption. Products
include sensors, sensor interfaces, power management, and wireless ICs for
consumer, communications, industrial, medical, and automotive markets.
With headquarters in Austria, ams employs over 2,100 people globally and serves
more than 8,000 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
Senior 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 Premstaetten
phone: +43 3136 500-0
FAX: +43 3136 500-931211
mail: investor@ams.com
WWW: www.ams.com
sector: Technology
ISIN: AT0000A18XM4
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English