EANS-Adhoc: ams AG / ams reports positive third quarter results with revenues in upper half of guidance range; sees softer demand patterns influencing fourth quarter

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Financial Figures/Balance Sheet/9-month report
26.10.2015

Key financial data for the third quarter 2015

Unterpremstaetten, Austria (26 October 2015) - ams (SIX: AMS), a
leading worldwide provider of high performance sensor and analog
solutions, reports positive third quarter 2015 results with revenues
in the upper half of the guidance range and year-on-year growth in
revenues and earnings. For the fourth quarter 2015, ams sees softer
demand patterns in consumer and non-consumer markets influencing
revenue development at expected stable gross margin.

Third quarter group revenues were EUR 153.0 million, increasing 15%
year-on-year from EUR 132.8 million in the same quarter 2014 and
decreasing 10% quarter-on-quarter. On a constant currency basis,
third quarter revenues were 2% higher compared to the third quarter
last year.

In the third quarter, gross margin remained unchanged from the
previous quarter at 56% excluding acquisition-related costs and 54%
including acquisition-related costs, compared to 57% and 55%
respectively, in the same quarter 2014.

The result from operations (EBIT) excluding acquisition-related costs
for the third quarter was EUR 38.0 million or 25% of revenues,
increasing slightly from EUR 37.4 million in the same period 2014.
The result from operations (EBIT) including acquisition-related costs
for the third quarter was EUR 35.1 million or 23% of revenues, up 2%
from EUR 34.5 million in the same period 2014. This development
reflects the addition of R&D resources including the recent
acquisition of the CMOS environmental sensor business.

The net result for the third quarter was EUR 34.0 million compared to
EUR 31.9 million in the same period last year. Basic and diluted
earnings per share were CHF 0.54/0.52 or EUR 0.49/0.47 based on
68,935,827/71,718,080 shares (basic/diluted; weighted average)
compared to CHF 0.57/0.54 or EUR 0.47/0.45 for the third quarter 2014
based on 68,071,765/70,796,466 shares (basic/diluted; weighted
average).

Operating cash flow for the third quarter was EUR 34.5 million, up
from EUR 33.7 million in the third quarter last year. Total backlog
on September 30, 2015 (excluding consignment stock agreements) was
EUR 101.4 million given customer order behavior in the current
environment with current backlog on a comparable level, compared to
EUR 133.3 million at the end of the second quarter and EUR 119.8
million on September 30, 2014.

ams' business performed well in the third quarter of 2015 taking into
account a more cautious demand environment and customer behavior,
particularly in the consumer market.

ams' consumer and communications business saw a good performance in
the third quarter, particularly driven by the company's light sensor,
gesture sensor, and wireless product areas. ams' portfolio of
intelligent light sensors for leading consumer and smartphone OEMs
continues to ship at high run rates including support for new
devices. The company's gesture sensor solution combining gesture
recognition with RGB color, proximity sensing and other functions is
seeing ongoing high volume shipments into multiple device platforms.
ams also began shipping cost-efficient light sensor solutions based
on its proprietary TSV technology in volume.

ams announced its first generation biosensor AS7000 in the quarter
and has seen first shipments into a wearable application for a
personal wristband. The new product offers high quality heart rate
measurement for wearable devices and supports the implementation of
heart rate variability (HRV) applications with meaningful accuracy
when compared to existing offerings. Following the company's
multi-year roadmap for innovative high value biosensors with
significantly more sophisticated functionality, ams expects to
announce a second generation biosensor offering novel capabilities in
the coming six months, based on current information.

In other product lines, ams saw continued volume shipments to support
leading vendors' devices with its high performance analog products.
In audio solutions, ams announced the adoption of its low-power ANC
noise cancellation technology by another major smartphone OEM for
bundled in-box earphones. High volume shipments of ams' boosted NFC
solution continued ensuring reliable transactions in
space-constrained devices such as smartphones and wearables.

ams' industrial, medical, and automotive businesses were again
successful in a more cautious market environment in the third
quarter. For its industrial end markets, ams provides differentiated
high value sensor and sensor interface solutions to leading
industrial OEMs, powering a broad range of position sensing and
automation applications while sampling the first generation of
sensor-based LED lighting control. In its medical business ams
continues to focus on digital imaging sensor solutions for advanced
computed tomography (CT), digital X-ray and mammography. The
company's automotive business performed well in the quarter and is
strongly positioned for major automotive trends requiring higher
sensor content for advanced driver assistance/LIDAR collision
avoidance, position sensing, and battery power management.

For the fourth quarter 2015, ams sees softer demand patterns in
consumer and non-consumer markets as well as customer-specific
effects influencing its business and therefore expects revenues of
EUR 137-142 million, based on current exchange rates and available
information. At the same time, ams anticipates gross margin
profitability in the fourth quarter to remain stable compared to the
third quarter while operating profitability is expected to be
sequentially lower reflecting the revenue development and comparable
R&D investments supporting critical sensor solution strategies.

ams is confident about the strong revenue and earnings potential of
its business driven by new sensor and analog technologies for
innovative applications in the consumer, smartphone and non-consumer
markets, based on available information. ams is continuing to
evaluate further additions to its sensor technologies portfolio to
broaden the scope of its high value solutions. ams' leading position
in sensor solutions aligns with its full project pipeline and
identified opportunities for revenue and earnings growth over the
coming years towards ams' 2019 revenue goal of EUR 1bn.

The company's third quarter report 2015 including additional
financial information is available on the company website at
http://www.ams.com/eng/Investor/Financial-Reports .

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About ams

ams is a global leader in the design and manufacture of advanced
sensor solutions and analog ICs. Our mission is to shape the world
with sensor solutions by providing a seamless interface between
humans and technology.

ams' high-performance analog products drive applications requiring
extreme precision, dynamic range, sensitivity, and ultra-low power
consumption. Products include sensors, sensor interfaces, power
management and wireless ICs for consumer, communications, industrial,
medical, and automotive markets.

With headquarters in Austria, ams employs over 1,800 people globally
and serves more than 8,000 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: AT0000A18XM4
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English