EANS-Adhoc: ams AG / ams reports positive first quarter results in a demanding market environment; first quarter revenues near upper end of guidance range; increased market uncertainty drives expected

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Financial Figures/Balance Sheet/3-month report
25.04.2016

Key financial data for first quarter 2016

Premstaetten, Austria (25 April 2016) - ams (SIX: AMS), a leading
worldwide manufacturer of high performance sensor and analog
solutions, reports positive first quarter results in a demanding
market environment with revenues of EUR 137.2 million near the upper
end of the guidance range and a gross margin of 57%. For the second
quarter 2016, ams sees increased end market and macroeconomic
uncertainty and expects flattish revenues of EUR 127-134 million
including negative revenue effects from the deterioration of the
USD/EUR exchange rate.

First quarter group revenues were EUR 137.2 million, decreasing 11%
year-on-year from EUR 153.3 million in the same quarter 2015 and
decreasing 7% quarter-on-quarter. On a constant currency basis, first
quarter revenues were 11% lower when compared to the first quarter
last year.

In the first quarter, gross margin excluding acquisition-related and
share-based compensation costs remained unchanged from the previous
quarter at 57% compared to 56% in the same quarter 2015. Gross margin
excluding acquisition-related costs was 56%, unchanged from the same
quarter 2015, while IFRS reported gross margin (including
acquisition-related and share-based compensation costs) was 54%,
unchanged from the same quarter 2015.

The result from operations (EBIT) excluding acquisition-related and
share-based compensation costs for the first quarter was EUR 28.2
million or 21% of revenues, down from EUR 43.4 million in first
quarter 2015. The result from operations (EBIT) excluding
acquisition-related costs was EUR 26.0 million or 19% of revenues,
down from EUR 42.1 million in the same period 2015, while the IFRS
reported EBIT (including acquisition-related and share-based
compensation costs) was EUR 19.7 million or 14% of revenues, down
from EUR 38.2 million in the same period 2015. This expected
development includes effects from a higher run rate of R&D costs
following the acquisition of CMOSIS. The net result for the first
quarter was EUR 13.6 million compared to EUR 42.2 million in the same
period 2015. Basic and diluted earnings per share were CHF 0.22/0.21
or EUR 0.20/0.19 based on 68,667,002/70,932,874 shares
(basic/diluted; weighted average) compared to CHF 0.65/0.62 or EUR
0.62/0.59 for the first quarter 2015 based on 68,638,875/71,483,195
shares (basic/diluted; weighted average).

Operating cash flow for the first quarter was EUR 7.5 million, down
from EUR 38.5 million in the first quarter last year. Total backlog
on March 31, 2016 (excluding consignment stock agreements) was EUR
126.2 million with current backlog on a comparable level, compared to
EUR 119.4 million at the end of the fourth quarter 2015 and EUR 150.7
million on March 31, 2015.

ams' business showed an attractive performance in the first quarter
of 2016 despite softness in the smartphone and consumer market which
noticeably exceeded typical seasonality, general seasonal effects,
and volatile customer behavior. ams' consumer and communications
product lines remained the most important driver of the company's
business development with ams' light sensor business as the largest
overall revenue contributor. For its portfolio of intelligent light
sensors ams continued to see high volume shipments to leading
consumer and smartphone OEMs including support for newly released
customer devices. This includes high performance ambient light
sensing and ams' gesture sensor solution combining gesture
recognition with RGB color, proximity sensing, and other functions,
shipping at attractive run rates. The current subdued demand
environment in the consumer end market also influenced other consumer
and communications product areas including audio and wireless
solutions. Nevertheless, shipments of ams' products continued at high
volumes supporting leading vendors' devices.

ams' industrial, medical, and automotive businesses saw good results
in the first quarter supported by their broad product portfolios. In
ams' industrial end markets, the company is an important player in
precision sensor and sensor interface solutions offering high
sensitivity and analog performance. Supplying a customer base of
leading industrial OEMs, ams' products play a key role in a wide
range of applications in position sensing and automation.

In the quarter, ams began sample shipments for its range of new
environmental sensor products to industrial customers as planned.
Given the advantages of full CMOS-based integration of temperature,
relative humidity, and pressure sensing, ams expects this innovative
product area to drive significant growth opportunities from 2017
onwards. ams' medical business remained stable with its focus on
digital imaging sensor solutions for advanced computed tomography
(CT), digital X-ray, and mammography.

Providing high value sensor and sensor interface solutions, ams'
automotive business also performed to expectations in the quarter.
ams' automotive sensor expertise supports a broad range of expanding
applications including advanced driver assistance LIDAR, position
sensing, and level and chassis control.

For the second quarter 2016, ams sees ongoing volatility in demand
patterns as well as in customer and supply chain behavior in the
consumer market. End market and macroeconomic uncertainties are
starting to spread beyond the consumer market into industrial
automation for China end markets creating an unfavorable dynamic. In
addition, the development of the USD/EUR exchange rate is expected to
result in a negative quarter-on-quarter revenue effect. Based on
available information and a USD/EUR exchange rate of 1.13, ams
expects second quarter revenue development to be flattish translating
into expected revenues of EUR 127-134 million which reflects the
deterioration of the USD/EUR exchange rate compared to the first
quarter.

At the same time, ams anticipates gross margin for the second quarter
excluding acquisition-based and share-based compensation costs to
remain on a level comparable to the first quarter. Operating margin
excluding acquisition-based and share-based compensation costs is
expected to be around 17-19% reflecting the higher run rate of R&D
costs for large-scale development projects across end markets
including acquisitions.

Despite these short-term influences ams confirms its 2019 organic
revenue goal of EUR 1bn based on the company's leading position in
sensor solutions, strong customer relationships, and major
opportunities for revenue and earnings growth over the coming years.
In this context, ams continues to evaluate complementary strategic
transactions and additions to its sensor technologies portfolio to
help accelerate the implementation of its strategy.

Additional financial information for the first quarter 2016 is
available on the company website at
www.ams.com/eng/Investor/Financial-Reports. Concurrently, ams has
published the Annual Report 2015 which is also available on the
company website at www.ams.com/eng/Investor/Financial-Reports .

Further inquiry note:
Moritz M. Gmeiner
Senior 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