EANS-Adhoc: austriamicrosystems AG / austriamicrosystems reports second quarter and first half results

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6-month report

26.07.2010

Key financial data for the second quarter and first six months of
2010

Unterpremstaetten, Austria (July 26, 2010) — austriamicrosystems
(SIX: AMS), a leading global designer and manufacturer of high
performance analog ICs for consumer, communications, industrial,
medical and automotive applications, reports strong revenue and
earnings growth for the second quarter and first half of 2010 driven
by high levels of volume demand across major market areas and
geographies. austriamicrosystems expects continuing revenue and
earnings growth for the second half of the year and therefore raises
its revenue guidance for full year 2010.

Second quarter group revenues were EUR 51.7 million, up 83% from EUR
28.3 million in the same quarter 2009. Second quarter revenues
increased 18% sequentially compared to the first quarter. Group
revenues for the first half of 2010 were EUR 95.7 million, up 78%
from EUR 53.8 million recorded in the first half of 2009. On a
constant currency basis, second quarter revenues were up 75% compared
to the second quarter last year and first half revenues were up 77%
compared to the first half 2009.

In the second quarter, gross margin rose to 47%, an increase of 25
percentage points from 22% in the same quarter last year, showing the
positive effect of austriamicrosystems´ return to high levels of
capacity utilization in its production. For the first half of 2010,
gross margin increased to 46%, compared to 26% in the first half of
2009. The result from operations (EBIT) for the second quarter was a
profit of EUR 5.3 million, compared to a loss of EUR 10.8 million in
the second quarter of 2009. This positive result was mainly driven by
a significantly higher gross margin which was due to high capacity
utilization and better product margins. For the first half of 2010,
EBIT was a profit of EUR 8.4 million, compared to a loss of EUR 20.6
million in the same period last year.

The net result for the second quarter 2010 was a profit of EUR 3.6
million compared to a loss of EUR 10.7 million in the same period
last year. Basic and diluted earnings per share for the second
quarter were CHF 0.50 / EUR 0.36 (CHF -1.52 / EUR -1.00 for the
second quarter 2009). The net profit for the first half-year 2010 was
EUR 5.7 million, equivalent to CHF 0.79 / EUR 0.55 per share (basic
and diluted) compared to a loss of EUR 18.7 million or CHF -2.64 /
EUR -1.76 per share (basic and diluted) for the same period last
year.

Operating cash flow for the second quarter was EUR 7.6 million, up
EUR 9.0 million from the same quarter last year, while operating cash
flow for the first half was EUR 15.6 million, up EUR 16.9 million
from the first half year 2009. Total backlog on June 30, 2010
(excluding consignment stock agreements) was EUR 80.9 million, up
from EUR 65.5 million at the end of the first quarter (EUR 35.1
million on June 30, 2009).

In austriamicrosystems´ consumer and communications business, strong
order patterns continued through the second quarter across product
areas. austriamicrosystems recorded high shipment levels for its
lighting and power management ICs to leading handset and mobile
device OEMs who achieve power savings, product differentiation, and a
richer user experience through its products. austriamicrosystems´
best-in-class LED drivers for LCD TV backlighting are shipping at
very high run rates as conversion to LED backlighting is
accelerating. In 2011, the company expects more than 50% of LCD TV
units to use LED illumination. austriamicrosystems commands a
significant share of this market as key supplier to leading OEMs and
is reinforcing its position with new, upcoming products. Similarly,
MEMS microphone driver shipments continued to show a strong upward
trend supporting the company´s expectation of significant growth in
this market in which it is the clear market leader. In new
applications, the first devices using EasyPoint™,
austriamicrosystems´ joystick solution for mobile devices, are on the
market, while camera modules with its ultra-thin autofocus solution
for handset cameras are being evaluated by first OEM customers with
initial volume shipments expected for the middle of next year. Among
its design-ins in the quarter, austriamicrosystems gained a leading
player in the smartphone market as a new customer for an innovative
application.

austriamicrosystems´ industrial and medical business delivered good
results in the second quarter, which on the industrial side were
largely driven by strengthening volumes in its sensor and encoder
business. Here run rates have moved towards previous levels as the
company´s customers report more confident order patterns in their end
markets. Generally, austriamicrosystems sees a positive development
of demand in an increasing number of industrial applications. The
company´s medical business continued to see healthy demand in its
focus areas digital imaging and portable medical devices. Development
of next generation sensor solutions remains on track, with
austriamicrosystems´ unique sensor expertise and low-noise and
low-power design capabilities offering real innovation and strong
competitive advantages to its customers.

In Automotive, the company´s business developed positively as
shipment volumes and customer orders continue to move quickly back
towards previous levels. Demand for sensor solutions for critical
in-car systems and increasing vehicle production volumes worldwide
are driving this positive development. New magnetic encoder
design-ins at Tier 1 suppliers complemented this recovery,
strengthening austriamicrosystems´ position in the automotive analog
market. The company´s foundry business contributed positively to its
business again in the second quarter and first half, leveraging its
focus on specialty processes in a tight supply environment.

Demonstrating its technology leadership, austriamicrosystems became
one of the first semiconductor vendors to industrialize the highly
innovative Through-Silicon-Via (TSV) architecture for a demanding
medical image sensor solution. The company also won a first-instance
court decision in a patent infringement case against Melexis
confirming that certain of Melexis´ products infringe a magnetic
encoder technology patent held by austriamicrosystems. In operations,
the capacity utilization of austriamicrosystems´ wafer fab and test
facilities increased further in the second quarter, moving quickly
towards pre-crisis levels. The company has successfully completed a
number of planned investments in its wafer fab to support current and
expected wafer demand, resulting in improved manufacturing
efficiency. austriamicrosystems also benefits from its distributed
manufacturing model allowing a combination of in-house and outsourced
production in order to optimize capacity utilization and
manufacturing costs.

Based on available information, austriamicrosystems expects its
business to continue to show attractive growth in the second half of
2010 driven by continuing high levels of demand in its target
markets. The company sees ongoing good order intake building on a
strong and diversified backlog for the second half of 2010.
Consequently, austriamicrosystems raises its guidance and now
anticipates full year revenue growth for 2010 to exceed 45% compared
to 2009. Gross margin and operating results are expected to improve
further over the remaining quarters. With its combination of in-house
manufacturing capacity and committed capacity at its production
partners, austriamicrosystems is able to supply its customers
reliably as its business continues to grow.

The complete half year report 2010 including detailed financial
information is available on austriamicrosystems´ website under
http://www.austriamicrosystems.com/eng/Investor/Financial-Reports

end of announcement euro adhoc
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ots Originaltext: austriamicrosystems AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Moritz M. Gmeiner

Director Investor Relations

Tel: +43 3136 500-5970

Fax: +43 3136 500-5420

Email: investor@austriamicrosystems.com

Branche: Technology
ISIN: AT0000920863
WKN: 632638
Börsen: SIX Swiss Exchange / official dealing