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

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6-month report

25.07.2011

Key financial data for the second quarter and first six months of
2011

Unterpremstaetten, Austria (July 25, 2011) — austriamicrosystems
(SIX: AMS), a leading global designer and manufacturer of high
performance analog ICs for consumer, communications, industrial,
medical and automotive applications, reports continued business
growth for the second quarter and first half of 2011 driven by the
success of its products across markets and geographies. The recently
completed acquisition of Texas Advanced Optoelectronic Solutions,
Inc. (TAOS) creates a global leader in lighting management and a
strong platform for future growth, particularly in attractive
consumer and communications applications. austriamicrosystems expects
combined company full year revenues to exceed EUR 260 million (USD
367 million) with growth in gross profit and operating margins
compared to 2010 and reiterates its stand-alone full year revenue
growth guidance for austriamicrosystems of around 10% for 2011.

Second quarter group revenues were EUR 57.9 million, up 12% from EUR
51.7 million in the same quarter 2010. Second quarter revenues
increased 5% sequentially compared to the first quarter. Group
revenues for the first half of 2011 were EUR 113.0 million, up 18%
from EUR 95.7 million recorded in the first half of 2010. On a
constant currency basis, second quarter revenues were up 18% compared
to the second quarter last year and first half revenues were up 22%
compared to the first half 2010.

In the second quarter, gross margin was 51%, 4 percentage points
higher than in the same quarter last year. For the first half of
2011, gross margin increased to 51%, compared to 46% in the first
half of 2010. The result from operations (EBIT) for the second
quarter was EUR 7.6 million, compared to EUR 5.3 million in the
second quarter of 2010. This result reflects ongoing high product run
rates across markets and full utilization of our manufacturing
capacity as well as one-time costs related to the acquisition of
TAOS. For the first half of 2011, EBIT was EUR 15.8 million, compared
to EUR 8.4 million in the same period last year.

The net result for the second quarter 2011 was EUR 6.6 million
compared to EUR 3.6 million in the same period last year. Basic and
diluted earnings per share for the second quarter were CHF 0.80 /
0.78 or EUR 0.65 / 0.63 (CHF 0.50 / 0.50 or EUR 0.36 / 0.36 for the
second quarter 2010). The net profit for the first half-year 2011 was
EUR 14.0 million, equivalent to CHF 1.74 / 1.70 or EUR 1.37 / 1.34
per share (basic / diluted), compared to EUR 5.7 million, i.e. CHF
0.79 / 0.79 or EUR 0.55 / EUR 0.55 per share (basic / diluted), for
the same period last year.

Operating cash flow for the second quarter was EUR 16.3 million, up
EUR 8.7 million from the same quarter last year, while operating cash
flow for the first half was EUR 30.9 million, up EUR 15.3 million
from the first half year 2010. Total backlog on June 30, 2011
(excluding consignment stock agreements) was EUR 61.9 million,
compared to EUR 69.4 million at the end of the first quarter (EUR
80.9 million on June 30, 2010).

For information purposes, austriamicrosystems is providing a summary
of TAOS´ business: TAOS continued to show strong growth in the first
half of 2011 with revenues of USD 53.5 million (EUR 38.2 million), an
increase of 86% from USD 28.7 million (EUR 21.8 million) for the
first half 2010. This growth was driven by the market success of
TAOS´ customers, particularly in smartphones and tablet PCs. For the
first half 2011, TAOS recorded a gross profit margin of 57% (first
half 2010: 50%) and an operating, or EBIT, margin of 33% (first half
2010: 22%).

austriamicrosystems´ business performed well in the second quarter
and first half given the success of the company´s products in high
volume applications and broad-based demand in its target markets
worldwide. Taking a major strategic step towards its goal of becoming
a best-in-class high performance analog company, austriamicrosystems
announced the acquisition of Texas Advanced Optoelectronic Solutions,
Inc. (TAOS), the leading provider of advanced light sensors
worldwide. The largest acquisition in the company´s history brings
together two organizations with world-class sensor know-how to create
a global leader in lighting management and optical sensors,
particularly for consumer and communications applications, and a
powerful platform for further profitable growth.

Adding TAOS´ best-in-class products and high quality customer base,
which includes two of the world´s leading smartphone and tablet
vendors as major customers, opens a wealth of opportunities for the
combined company to expand beyond current products and customers.
TAOS is a successful high volume business with excellent
profitability and continues to exhibit significant growth as it
expands its market penetration. The combination of
austriamicrosystems and TAOS creates a strong and sizeable player in
the high performance analog market and enables continued margin
growth going forward.

In austriamicrosystems´ existing consumer and communications
business, shipment levels for its lighting and power management ICs
to leading handset and mobile device manufacturers remained high in
the second quarter. MEMS microphone driver shipments continued their
upward trend in the quarter supporting the company´s market leader
position and the expectation of further strong growth in this product
area in 2011. These healthy run rates also reflect the growing market
volume and success of austriamicrosystems´ products in tablet PCs
while its other product lines including LCD backlighting continue to
show good ongoing traction despite some softness in the uptake of LCD
TVs in several markets. austriamicrosystems´ innovative sensor
solutions for mobile devices are successful in the market with major
OEMs pursuing adoption into next generation smartphones and mobile
devices. Given a more changeable demand environment in several
consumer and communications markets austriamicrosystems has
experienced inconsistent OEM order patterns in certain product areas
in the second quarter. The company nevertheless records increasing
market penetration and strong design-in activity in its target
applications and sees its consumer and communications business
continuing to show a positive development until year-end.

austriamicrosystems´ industrial and medical business delivered
another good quarter with shipments on the industrial side largely
driven by attractive volume demand for its sensor and encoder product
lines. austriamicrosystems sees its market position in the industrial
market continuing to develop positively worldwide. Run rates for
industrial sensor and automation customers are at healthy levels
while order patterns for the company´s industrial products remain
good. In its medical business austriamicrosystems saw continued
strong run rates for products in its focus areas digital imaging and
portable medical devices. The ramp-up of the company´s next
generation computer tomography sensor solution with
Through-Silicon-Via (TSV) technology continued through the quarter
given the expected expansion of its customer´s demand.

In Automotive, austriamicrosystems´ business developed positively
with attractive demand for sensor solutions for critical in-car
systems. Strong run rates continued given the very high levels of
vehicle production worldwide. Overall, the company sees design-in
momentum at its customers continuing at a strong pace across markets
while it explores the numerous design opportunities the acquisition
of TAOS offers for the combined business. austriamicrosystems´
foundry business contributed positively to the company´s results
again in the second quarter and first half given its focus on high
value specialty processes.

Based on available information, current exchange rates and the
continuing expansion of austriamicrosystems´ and TAOS´ business,
austriamicrosystems expects full year revenues for the combined
company to exceed EUR 260 million (USD 367 million) together with
growth in gross profit and operating margins. The company continues
to expect stand-alone full year 2011 revenue growth for
austriamicrosystems of around 10% compared to 2010 despite a more
changeable demand environment in the consumer and communications
markets.

As a consequence of the capital increase related to the transaction
to acquire TAOS, SIX Swiss Exchange recently announced that
austriamicrosystems will be reclassified within the SPI® Swiss
Performance Index family from the SPI® Small to the SPI® Middle index
basket, effective September 19, 2011.

The complete half year report 2011 including detailed financial
information is available on austriamicrosystems´ website under
http://www.austriamicrosystems.com/eng/Investor/Financial-Reports

About austriamicrosystems austriamicrosystems is a leading designer
and manufacturer of high performance analog ICs, combining over 25
years of analog design know-how with state-of-the-art manufacturing
and test facilities and production partnerships. austriamicrosystems
leverages its expertise in low power and high accuracy to provide
industry-leading standard and customized analog products. Operating
worldwide with more than 1,200 employees, austriamicrosystems focuses
on the areas of power management, sensors & sensor interfaces and
mobile infotainment in its markets Consumer & Communications,
Industry & Medical and Automotive. Through the acquisition of TAOS, a
world leader in advanced light sensors, austriamicrosystems has
expanded its innovative sensor offering for growth markets such as
mobile consumer devices. austriamicrosystems is listed on the SIX
Swiss Exchange in Zurich (ticker: AMS). For more information, please
visit www.austriamicrosystems.com

Further inquiry note:
Moritz M. Gmeiner
Director Investor Relations
Tel: +43 3136 500-5970
Fax: +43 3136 500-5420
Email: investor@austriamicrosystems.com

end of announcement euro adhoc
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issuer: austriamicrosystems AG
Schloß Premstaetten
A-8141 Unterpremstaetten
phone: +43 3136 500-0
FAX: +43 3136 500-5420
mail: investor@austriamicrosystems.com
WWW: www.austriamicrosystems.com
sector: Technology
ISIN: AT0000920863
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English