EANS-Adhoc: austriamicrosystems AG / austriamicrosystems reports financial results for fiscal year 2011

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29.02.2012

Audited financial information for fiscal year 2011 and fourth quarter
2011

Unterpremstaetten, Austria (February 29, 2012) — 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 2011 driven by fast growth in its consumer &
communications business and despite a muted development of the
industrial market in the second half. 2011 full year revenues
increased by 32% to a record high of EUR 275.7 million (USD 383.3
million) while the operating profit grew by 59% to EUR 43.1 million.
In the fourth quarter 2011, austriamicrosystems recorded revenues of
EUR 81.0 million, up 40% year-on-year (39% in constant currency) and
almost unchanged quarter-on-quarter, while the operating margin
improved to 18%. For 2012, austriamicrosystems increases its full
year guidance again and is now expecting revenue growth of more than
25% compared to 2011, together with faster earnings growth.

Financials

Audited group revenues for 2011 were EUR 275.7 million (USD 383.3
million), an increase of 32% from EUR 209.4 million recorded for 2010
and above the company´s full year guidance of EUR 270-275 million
(USD 365-371 million). In constant currency, full year revenues
increased by 38% compared to the previous year. Revenues for the
fourth quarter 2011 were EUR 81.0 million, up 40% from the EUR 57.9
million recorded in the last quarter 2010 (39% in constant currency)
and almost unchanged quarter-on-quarter.

Gross margins for the full year 2011 increased to 52% excluding an
acquisition-related amortization charge and 51% including the
acquisition-related amortization charge from 48% in 2010, driven by
improved product mix, continued high utilization and manufacturing
cost reductions. Gross margins for the fourth quarter 2011 were 53%
excluding the acquisition-related amortization charge and 50%
including the acquisition-related amortization charge, compared to
51% in the same period 2010.

The group result from operations (EBIT) for 2011 was EUR 43.1 million
or 16% of revenues, up 59% from EUR 27.1 million in 2010. Investments
in research & development amounted to EUR 50.8 million or 18% of
revenues, driven by long-term product roadmaps and significant
design-win activity throughout 2011. The group EBIT for the fourth
quarter 2011 was EUR 14.3 million or 18% of revenues, up 51% from EUR
9.5 million in the fourth quarter 2010 and 10% from EUR 13.0 million
in the previous quarter.

Net income for 2011 was EUR 35.3 million, up 53% from EUR 23.1
million in 2010. Basic / diluted earnings per share for 2011 were CHF
3.75 / 3.67 or EUR 3.04 / 2.98 (2010: CHF 3.08 / 3.03 or EUR 2.25 /
2.21). Net income for the fourth quarter 2011 was EUR 11.8 million,
up 25% from EUR 9.4 million for the same period 2010. Basic / diluted
earnings per share for the fourth quarter were CHF 1.13 / 1.11 or EUR
0.92 / 0.91 (2010: CHF 1.21 / 1.16 or EUR 0.92 / 0.89).

Cash flow from operations increased to EUR 70.3 million in 2011, up
54% from EUR 45.7 million in 2010. Cash and short term investments
stood at EUR 65.0 million on December 31, 2011 compared to EUR 44.2
million at year-end 2010 while net debt was EUR 52.6 million at
year-end 2011 (December 31, 2010: EUR 3.5 million). Capital
expenditures for 2011 were EUR 17.7 million compared to EUR 13.2
million for 2010. The total backlog at the end of 2011 which does not
include consignment stock agreements in major markets was EUR 90.0
million compared to EUR 66.4 million on December 31, 2010. The
average number of group employees was 1,193 for fiscal year 2011,
compared to 1,119 for the year 2010, and 1,253 for the fourth quarter
2011.

Based on the company´s cash dividend policy stipulating the
distribution of 25% of net earnings austriamicrosystems will propose
a dividend of EUR 0.64 per share for 2011.

Business

austriamicrosystems´ business showed a strong performance in 2011.
With the addition of U.S.-based light sensor leader TAOS Inc. the
company significantly expanded its market position in the global
analog semiconductor market and extended its leadership in ultra-low
power consumption, high accuracy and exceptional analog performance
applications.

In the Consumer & Communications area, austriamicrosystems
substantially strengthened its position as a major supplier to
leading smartphone, handset and mobile device vendors last year.
Through the acquisition of TAOS austriamicrosystems has become the
leading provider of advanced optical sensors worldwide with roughly
40% market share. The company´s ambient light and proximity sensors
improve usability and user experience for smartphones, tablet PCs,
notebooks and desktop PCs with global smartphone and tablet PC
leaders relying on austriamicrosystems´ light sensor products for
mobile device power management. Driven by fast market growth in
smartphones and tablet PCs optical sensors recorded a major volume
increase last year while additional design-ins expanded the company´s
market reach. austriamicrosystems also continued to play a leading
role in mobile lighting and power management with high shipment rates
to top-tier device vendors. In MEMS microphone interfaces,
austriamicrosystems confirmed its market leadership with volumes
rising to over 1 billion units last year. The MEMS microphone market
continues to grow based on smartphone and tablet PC growth and
increasing penetration. The company´s pure analog ANC solution for
the suppression of ambient noise is shipping in volume and winning
accolades in high volume headsets. The LCD-TV LED backlighting market
did not sustain the previous year´s momentum due to delayed
technology adoption and lower end-market volumes while
austriamicrosystems retained its technological lead. Solutions for
RFID readers performed strongly last year with revenue growth in
excess of 100% albeit from a low base. The RFID market offers
outstanding opportunities for highly profitable growth for the
company based on the austriamicrosystems´ clear technological
leadership in authentication and payment systems.

The industrial and medical business recorded healthy growth and very
positive results for 2011 despite a mixed development of major market
areas. After a very strong first half with high order intake across
industrial product lines, the industrial business experienced weaker
order patterns and a deceleration in end market demand towards
year-end and into the current year. A leader in industrial sensors,
industrial automation and building control, austriamicrosystems was
nevertheless able to fortify its market position last year: the
industrial business expanded its industry-leading portfolio of
magnetic encoders which includes the unique 3D-Hall position sensing
technology and achieved first high profile design-wins in the
demanding Japanese market, being chosen over Japanese competitors.

austriamicrosystems´ medical business recorded attractive growth last
year given significant market success in the core area Medical
Imaging (CT, digital X-ray, ultrasound). The company´s new integrated
CT imaging sensor solution saw a strong increase in shipments
delivering major diagnostic and cost advantages. Called a
"revolutionary" innovation, the TSV (Through Silicon Via)-based
technology allowed the company´s customer to reinforce its leadership
in the global CT market. Overall, the medical business continues to
benefit from long-term partnerships with leading OEMs.

austriamicrosystems´ automotive business performed well in 2011
driven by continued strong automotive demand worldwide. Focused on
sensor and encoder solutions, battery power management and critical
safety systems, the company´s automotive markets experienced healthy
run rates and are seeing robust mass production volumes. The
automotive business increased its revenue pipeline again last year
winning designs at major system suppliers, including first wins for
key Japanese suppliers. The company´s specialty foundry activities
continued their success in 2011 serving a high quality client base
with advanced specialty processes. Building on its reputation as a
leading analog specialty foundry, the business area again provided an
attractive contribution to the overall result.

austriamicrosystems´ global customer base grew significantly in 2011
as distribution revenues also saw a further healthy increase
worldwide. The company successfully leveraged its expanded sales and
support network in Asia Pacific and Japan to add substantial new
customers and a number of high value projects. With rapidly
increasing business opportunities, the Asia Pacific region is
becoming an important driver of growth for austriamicrosystems going
forward. At the same time, the successful integration of the added
optical sensor business offers additional growth prospects for the
future.

Outlook

Based on currently available information, austriamicrosystems is
again increasing its 2012 full year guidance to reflect growth
expectations for its consumer and communications business.
austriamicrosystems is now expecting full year revenue growth for
2012 of more than 25% compared to 2011. At the same time, the
company anticipates gross margins to increase further and full year
earnings to grow faster than expected 2012 revenues.
austriamicrosystems will update its outlook during the year as more
information becomes available.

In contrast to typical first quarter end-market seasonality,
austriamicrosystems expects continued growth in revenues and earnings
for the first quarter 2012 with revenues showing a solid
quarter-on-quarter increase.

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

About austriamicrosystems

austriamicrosystems is a leading designer and manufacturer of high
performance analog ICs, combining 30 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 over 1,200
employees, austriamicrosystems focuses on the areas of sensors &
sensor interfaces, power management and mobile infotainment in its
markets Consumer & Communications, Industry & Medical and Automotive.
Through the combination with TAOS, a world leader in advanced light
sensors, austriamicrosystems has expanded its innovative sensor
offering for growth markets such as mobile 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