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

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Mid Year Results/6-month report
22.07.2013

Key financial data for the second quarter and first half 2013

Unterpremstaetten, Austria (22 July 2013) - ams (SIX: AMS), a leading
provider of high performance analog ICs and sensors, recorded
sequential revenue growth in the second quarter 2013, testifying to
the company's strong market position in high performance sensors and
analog solutions. Currently, ams is preparing to realize a full
multi-year pipeline of projects and design-ins going forward.

Financial results

Second quarter group revenues were EUR 91.2 million, up 8%
sequentially compared to the first quarter and decreasing 5% from EUR
96.1 million in the same quarter 2012. Group revenues for the first
half of 2013 were EUR 176.1 million, decreasing 6% from EUR 186.8
million recorded in the first half of 2012. On a constant currency
basis, second quarter revenues were 4% lower compared to the second
quarter last year and first half revenues were 5% lower compared to
the first half of 2012.

In the second quarter, gross margin was 54% excluding
acquisition-related amortization and 51% including
acquisition-related amortization, compared to 54% and 52%
respectively, in the same quarter 2012. For the first half of 2013,
gross margin was 54% excluding acquisition-related amortization and
51% including acquisition-related amortization, compared to 54% and
51% respectively, in the first half of 2012.

The result from operations (EBIT) for the second quarter was EUR 9.1
million or 10% of revenues, a decrease of 57% from EUR 21.3 million
in the second quarter of 2012. Adjusted for a one-time severance
payment for a previous management board member of approximately EUR
1.2 million and a one-time equity investment write-down of EUR 1.8
million, EBIT was EUR 12.1 million or 13% of revenues for the second
quarter. This result reflects ams' continuing upfront investments
into R&D resources for existing pipeline projects and sales and
marketing resources for dedicated customer support. For the first
half of 2013, reported EBIT was EUR 19.6 million compared to EUR 39.6
million in the same period last year.

The net result for the second quarter was EUR 9.0 million compared to
EUR 19.7 million in the same period last year. Basic and diluted
earnings per share for the quarter were CHF 0.83/0.79 or EUR
0.67/0.64 based on 13,358,739/13,932,770 shares (basic/diluted;
weighted average), com-pared to CHF 1.87/1.77 or EUR 1.56/1.48 for
the second quarter 2012. The net profit for the first half year 2013
was EUR 18.9 million, equivalent to CHF 1.73/1.66 or EUR 1.41/1.35
per share (basic/diluted) based on 13,384,672/14,008,626 shares
(basic/diluted; weighted average), com-pared to EUR 38.9 million,
i.e. CHF 3.68/3.53 or EUR 3.06/2.93 per share (basic/diluted), for
the same period last year.

Operating cash flow for the second quarter was EUR 23.2 million
compared to EUR 24.8 million in the second quarter last year, while
operating cash flow for the first half was EUR 36.9 million compared
to EUR 49.4 million in the first half year 2012. Total backlog on
June 30, 2013 (excluding consignment stock agreements) was EUR 82.4
million compared to EUR 77.4 million at the end of the first quarter
and EUR 106.8 million on June 30, 2012.

Business overview

ams' business performed well in the second quarter and first half of
2013. ams continues to combine expanding OEM relationships with a
strong, growing and differentiated product portfolio to serve
customers' current and future technology needs.

In its Consumer & Communications business, ams saw shipments of its
light sensor, lighting and power management ICs to handset and mobile
device OEMs remain at attractive levels despite a slower development
of end market volume demand. Best-in-class integrated optical sensor
solutions continue to make ams a key supplier to major smartphone and
mobile device OEMs world-wide.

ams sees strong customer demand for new sensor technologies in
smartphones and mobile devices, which will enable attractive
functions to be incorporated in next-generation models. Offering
tangible user benefits, these may include new applications in areas
such as user device interaction, navigation, or mobile transactions.
The solution enabling mobile couponing via optical sensor technology
is only one example of the innovation ams can bring to smartphones
and mobile devices. MEMS microphone driver shipments developed
positively in the first half of 2013 with new mobile device platforms
continuing to rely on ams' outstanding technology to support low
noise and highest sound quality.

In ams' wireless business for NFC and RFID, design-in and development
activities continue at high levels for the company's NFC solutions
including front ends, antenna boost and peer-to-peer capabilities.
ams' NFC solutions are strongly positioned and well known in the
market for their technical capabilities supporting seamless mobile
device transactions. ams offers high sensitivity NFC performance in
the smallest form factors available to enable a high quality user
experience for smartphone NFC transactions. Shipments of other
wireless products developed positively in the quarter albeit at a
less intensive rate than previously expected. ams continues to see
strong profitable growth in NFC going forward which is supported by a
variety of active projects and strong OEM engagements and
commitments.

The company's industrial and medical business again offered a very
good performance in the second quarter and first half. ams'
differentiated sensor and sensor interface products and solutions are
successful in a variety of industrial end markets based on their
technological advances and high performance in demanding
applications. This business benefitted from a more attractive market
environment in the first half of the year. ams' medical business
again posted positive results driven by the company's digital imaging
solutions, particularly for leading edge computed tomography (CT),
mammography and ultrasound.

ams' automotive business continued its positive development in the
first six months, driven by the success of the company's sensor and
sensor interface solutions and new platform launches. ams expects its
automotive business to show further growth going forward given its
focus on high performance products for critical systems and the
ongoing expansion of electronic and sensor systems in vehicles. ams'
specialty foundry business again contributed positively to the
results in the first half. In operations, the investment into the
advanced 3D packaging line at ams' headquarters remains fully on
track and the line is expected to ramp into production at the end of
this year.

The company's market position in high performance analog solutions
continues to be driven by its full pipeline of development projects
and design-ins despite the announced delay in certain customer
ramp-ups for new Consumer & Communications products. ams has added
further high quality design-ins for long-term projects in the second
quarter and sees continuing high levels of design-in and development
activities around its products. ams' ongoing investments into R&D and
customer sales support are fully supported by exciting growth
opportunities in the years to come.

ams has also experienced no negative impact on customer relationships
or on its project pipeline situation following the management board
change during the quarter given the company's broad and experienced
management team. The search process for the envisaged expansion of
the man-agement board is ongoing.

Outlook

As previously announced ams is adapting its outlook presentation with
a focus on the upcoming quarter to better reflect the significant
revenue share of Consumer & Communications and the related market
characteristics. For the third quarter 2013, ams expects revenues of
EUR 94-98 million driven by new product ramp-ups. ams also expects
gross margin to increase quarter-on-quarter in the third quarter and
EBIT margin to expand by more than 400 bps on a sequential basis.

While ams sees a flattish revenue development for 2013 compared to
the previous year, ams reiterates its strong longer term outlook for
growth in revenues and profitability in the coming years. This
expectation is driven by ams' significant pipeline of products and
design-ins across the markets for smartphones, tablet PCs, mobile
devices, industrial, medical, and automotive systems.

The company's half year report 2013 including additional financial
information is available on the company website at
http://www.ams.com/eng/Investor/Financial-Reports

###

About ams

ams develops and manufactures high performance analog semiconductors
that solve its customers' most challenging problems with innovative
solutions. ams' products are aimed at applications which require
extreme precision, accuracy, dynamic range, sensitivity, and
ultra-low power consumption. ams' product range includes sensors,
sensor interfaces, power management ICs and wireless ICs for
customers in the consumer, industrial, medical, mobile communications
and automotive markets.

With headquarters in Austria, ams employs over 1,300 people globally
and serves more than 7,800 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
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 Unterpremstaetten
phone: +43 3136 500-0
FAX: +43 3136 500-931211
mail: investor@ams.com
WWW: www.ams.com
sector: Technology
ISIN: AT0000920863
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English