EANS-Adhoc: austriamicrosystems AG / austriamicrosystems reports financial results for fiscal year 2010

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01.03.2011

Audited financial information for fiscal year 2010 and fourth quarter
2010

Unterpremstaetten, Austria (March 1, 2011) — austriamicrosystems
(SIX: AMS), a leading worldwide designer and manufacturer of high
performance analog ICs for consumer & communications, industry &
medical and automotive applications, recorded strong revenue and
earnings growth in 2010 driven by the dynamic recovery in the
company´s target markets. 2010 full year revenues increased by 53% to
a record high of EUR 209.4 million while the operating profit
rebounded to EUR 27.1 million. In the fourth quarter 2010,
austriamicrosystems recorded another improvement in revenues and
earnings with revenues of EUR 57.9 million, up 32% year-on-year and
4% quarter-on-quarter. For the full year 2011, austriamicrosystems
expects above-market revenue growth of around 10% compared to 2010,
together with faster earnings growth.

Financials

Audited group revenues for 2010 were EUR 209.4 million (2009: EUR
137.2 million). In constant currency, full year revenues increased by
48% compared to the previous year. Revenues for the fourth quarter
2010 were EUR 57.9 million, up 32% from the EUR 43.9 million recorded
in the last quarter 2009 and up 4 % quarter-on-quarter. In constant
currency, fourth quarter revenues increased by 27% compared to the
same quarter 2009.

Gross margins for the full year 2010 increased to 48% from 35% in
2009, demonstrating the positive impact of austriamicrosystems´
return to nearly full capacity utilization in the course of the year.
Gross margins for the fourth quarter 2010 improved to 51%, up from
43% in the same period 2009 and 2 percentage points higher
sequentially.

The group result from operations (EBIT) for 2010 was a profit of EUR
27.1 million compared to a loss of EUR -19.0 million in 2009.
Investments in research & development amounted to EUR 42.4 million,
up from EUR 40.1 million in 2009, based on strategic product roadmaps
and strong design-wins throughout 2010. The group EBIT for the fourth
quarter 2010 was a profit of EUR 9.5 million, compared to EUR 2.1
million in the fourth quarter 2009 and EUR 9.2 million in the
previous quarter.

Net income for 2010 was a profit of EUR 23.1 million, compared to a
loss of EUR -16.7 million in 2009. Basic / diluted earnings per share
for 2010 were CHF 3.08 / 3.03 or EUR 2.25 / 2.21 (2009: CHF: -2.36 /
-2.36 or EUR -1.57 / -1.57). Net income for the fourth quarter 2010
was EUR 9.4 million, compared to EUR 2.6 million for the same period
2009. Basic / diluted earnings per share for the fourth quarter were
CHF 1.21 / 1.16 or EUR 0.92 / 0.89 (2009: CHF 0.37 / 0.37 or EUR 0.25
/ 0.25).

Cash flow from operations increased strongly to EUR 45.7 million in
2010 from EUR 20.3 million in 2009. Capital expenditures for 2010
were EUR 13.2 million compared to EUR 10.3 million recorded in 2009.
The total backlog at the end of 2010 which does not include
consignment stock agreements in major markets was EUR 66.4 million
compared to EUR 45.6 million on December 31, 2009.

Cash and short term investments improved to EUR 44.2 million on
December 31, 2010 compared to EUR 42.2 million at year-end 2009
despite a significant decrease in net debt from EUR 25.7 million at
year-end 2009 to EUR 3.5 million on December 31, 2010. The equity
ratio increased to 65% at year-end 2010 from 60% at the end of 2009.
The average number of group employees was 1,119 for fiscal year 2010,
compared to 1,087 for the year 2009, and 1,136 for the fourth quarter
2010.

Based on the company´s cash dividend policy stipulating the
distribution of 25% of net earnings austriamicrosystems will propose
a dividend of EUR 0.52 per share for 2010.

Business

austriamicrosystems´ business performed strongly in 2010. The company
strengthened its market position in the global analog semiconductor
market given the success of its products and an expanding base of
quality customers. With over four hundred design-ins across markets
last year and a sizeable business increase with distributors
globally, austriamicrosystems confirmed its leadership in low power
consumption, high accuracy and analog performance.

In Consumer & Communications, austriamicrosystems reinforced its
position as a major supplier to leading handset and mobile device
OEMs last year. Shipment volumes for a wide range of power and
lighting management products remained at high levels through the
fourth quarter and into the current year. In MEMS microphone
products, volumes expanded significantly in 2010 to over 600m units
validating austriamicrosystems´ clear leadership (estimated market
share of over 90%) in this growing market which is expanding into
tablet devices along with the company´s power products.
Innovation-driven product lines such as the EasyPoint™ input device
for handsets or gaming and the company´s fully analog low-power
active noise cancellation are seeing good response from industrial
partners or already first volume devices. LED backlighting for LCD
TVs continued its rapid adoption in 2010 which is expected to
accelerate in the current year. A technology leader in this growth
market, austriamicrosystems retains a significant market share with
recently launched products broadening the company´s offering to major
OEMs. In the new market for RFID readers, the company began volume
shipments of its RFID reader solutions last year.

Following a muted first half due to the slow recovery of the
industrial market, Industry & Medical showed an overall robust
performance in 2010. Having gained visible momentum and returned to
previous levels by the fourth quarter, the company´s industrial
business recorded positive results for the full year. In this market,
austriamicrosystems is seeing continued high order and shipment rates
driven by sustained demand from the industrial automation, building
control and industrial sensors segments. Here the company expanded
its industry-leading magnetic encoder range by introducing the unique
3D-Hall technology, a true innovation in position sensing.
austriamicrosystems´ medical business achieved attractive results
also for 2010. The key areas medical imaging (CT, digital X-ray,
ultrasound) and personal healthcare devices performed well driven by
long-term partnerships with leading OEMs which form a strong
foundation for the future. An innovative integrated medical imaging
sensor offering significant analytical patient benefits and cost
advantages to the customer started mass production last year and is
already reaching substantial volumes.

austriamicrosystems´ automotive business recorded a strong
performance in 2010 given high levels of automotive demand worldwide.
Customer demand remained healthy through the fourth quarter with high
run rates and robust forecasts for key product lines. Focused on
dedicated encoder and sensor solutions, battery power management and
FlexRay data bus systems, the automotive business was able to expand
its design-in pipeline with major system suppliers. The company´s
specialty foundry activities were again successful with their focus
on advanced specialty processes and a high quality client base,
particularly for sensor products. Recognized as a leading analog
specialty foundry, the business area provided an attractive
contribution to the overall result.

In 2010, austriamicrosystems added significant new customers, namely
in Asia Pacific, to its global base and won additional business at
existing customers. New worldwide distribution agreements with two
leading global semiconductor distributors significantly strengthened
this sales channel, creating excellent opportunities for growth and
adding an extensive, untapped customer base. As worldwide analog
semiconductor capacities continue to appear imbalanced and short of
demand, austriamicrosystems´ own world-class production
infrastructure ensures secure supply for the company´s customers and
provides a long-term competitive advantage.

Outlook

austriamicrosystems expects further growth in the current year and
anticipates that its market position will continue to improve driven
by a strong product line-up and exposure to growth segments across
its target markets.

Based on currently available information, austriamicrosystems expects
full year revenue growth for 2011 of around 10% compared to 2010. At
the same time, the company anticipates gross margins to develop
positively and full year earnings to grow faster than expected 2011
revenues. austriamicrosystems will update its outlook during the year
as more information becomes available.

For the first quarter 2011, austriamicrosystems expects strong growth
in revenues and earnings compared to last year´s first quarter with
revenues showing a seasonal quarter-on-quarter decrease of less than
10%.

Additional financial information is available on the
austriamicrosystems website at
http://www.austriamicrosystems.com/eng/Investor

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