EANS-Adhoc: ams AG / ams reports first quarter 2017 results above previous guidance; sequential revenue growth expected for second quarter; fully on track for expected second half 2017 ramp-ups; signi

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Annual Reports/quarterly report
24.04.2017

Key financial data for first quarter 2017

Premstaetten, Austria (24 April 2017) - ams (SIX: AMS), a leading
worldwide supplier of high performance sensor solutions, reports
first quarter 2017 results with revenues and operating profitability
above previous guidance. ams expects sequential revenue growth for
the second quarter 2017 with revenues of EUR 174-181 million and
adjusted operating margin around break-even. Preparations for
ramp-ups in the second half 2017 are fully on track while increased
customer forecasts and a higher revenue pipeline drive a strong
increase in capital expenditures. ams' mid-term revenue growth target
is under upward revision.

First quarter group revenues were EUR 149.3 million, above the upper
end of ams' previous guidance, up 12% sequentially compared to the
fourth quarter and increasing 9% from EUR 137.2 million in the same
quarter 2016. On a constant currency basis, first quarter revenues
were up 6% compared to the first quarter last year. Excluding the
Heptagon business, revenues were slightly up sequentially compared to
the fourth quarter 2016, which was also above previous guidance.

In the first quarter, adjusted gross margin (excluding
acquisition-related and share-based compensation costs) stood at 46%
with IFRS reported gross margin at 40%, compared to 57% and 54%
respectively, in the same quarter 2016. The lower gross margin was
due to the underutilization of ams' production facilities in
Singapore which reflects the ongoing capacity expansion to support
high volume product ramp-ups expected to start in the third quarter
2017.

The adjusted result from operations (EBIT) (excluding
acquisition-related and share-based compensation costs) for the first
quarter was EUR 4.1 million or 3% of revenues which was above
previous guidance, decreasing from EUR 28.2 million in the same
period 2016. Excluding the Heptagon business, the adjusted EBIT
margin stood at 14%, which was well above previous guidance. The IFRS
reported result from operations (EBIT) for the first quarter was EUR
-13.8 million or -9% of revenues, down from EUR 19.7 million in the
same period 2016.

The net result for the first quarter was EUR -16.2 million compared
to EUR 13.6 million in the same period last year. Basic and diluted
earnings per share were CHF -0.23/-0.23 or EUR -0.22/-0.21 based on
74,496,209/76,213,409 shares (basic/diluted; weighted average)
compared to CHF 0.22/0.21 or EUR 0.20/0.19 for the first quarter 2016
based on 68,667,002/70,932,874 shares (basic/diluted; weighted
average).

Operating cash flow for the first quarter was EUR 26.1 million
compared to EUR 7.5 million in the same quarter last year. Total
backlog on March 31, 2017 (excluding consignment stock agreements)
was EUR 195.6 million - a sharp increase compared to EUR 136.1
million at the end of the fourth quarter 2016 and EUR 126.2 million
on March 31, 2016.

ams' business had a strong start into the year in the first quarter
of 2017 recording a meaningful quarter-on-quarter increase in
revenues amid solid demand from most end markets. These results
demonstrate ams' strong market position in both the consumer and
smartphone markets and across its balanced portfolio of consumer and
non-consumer businesses.

The consumer and communications business showed attractive results in
the first quarter based on overall better volumes across ams' broad
customer base. Leading OEMs rely on the company's solutions and drove
positive run rates of ams' high performance optical sensor solutions
including ambient light sensing, proximity sensing and other optical
applications. ams' other consumer product lines including audio
solutions saw continued good volume shipments to a range of device
vendors which contributed positively to ams' first quarter results.
Design momentum in ams' consumer business remains strong as OEMs
realize the attractiveness of ams' offering across key areas of
sensing. ams' multi-year project and product pipeline is supported
and advanced by the company's clear development focus on next
generation sensing in optical / 3D, audio and environmental.

ams is receiving positive market feedback on the acquisition of
Princeton Optronics which ams announced in the quarter. ams' ability
to offer a complete value chain in optical sensing including VCSEL
illumination sources opens up very attractive new growth
opportunities for the coming years. ams sees the potential to
increase its presence in consumer and smartphone applications as well
as future automotive applications for 3D sensing, based on the
combination of Princeton and ams technologies.

ams' industrial, medical, and automotive businesses performed well in
the first quarter 2017. Demand in these non-consumer end markets is
showing positive momentum and appears improved when compared to last
year. ams' strong market position in industrial sensing is based on
differentiated sensor and sensor interface solutions that enable high
performance applications for leading OEMs and their customers
globally. In ams' medical business, digital imaging sensor solutions
for computed tomography (CT), digital X-ray, and mammography
continued their attractive contribution driven by technology
leadership. New Asian customers are offering future opportunities in
this area. ams' automotive sensing business is built around sensor
and sensor interface technologies for safety, driver assistance,
position, and emerging applications where ams sees good demand
continuing this year.

ams expects significant high volume ramp-ups in its consumer business
in the second half of 2017. ams' preparation for these growth
opportunities is fully on track and related activities are
progressing to plan. ams is seeing significantly increased customer
forecasts and a higher revenue pipeline for 2017 and particularly
2018 while ams is adding new projects and additional design-wins. As
a consequence, ams is strongly increasing its capital expenditures
this year and now expects group capital expenditures of around EUR
400-450 million in 2017. This increase includes additional equipment
investments for optical layer deposition and an acceleration of
capacity expansion at ams' Singapore sites to prepare for expected
customer volume needs into 2018.

Given these very positive forecast and pipeline developments ams'
mid-term revenue growth target is currently under upward revision.

For the second quarter 2017, ams is seeing a positive development of
its business apart from the Heptagon business which ams expects to
show the anticipated more flattish revenue development
quarter-on-quarter. Based on available information and a current
USD/EUR exchange rate of 1.08, ams expect second quarter revenues of
EUR 174-181 million, a sequential growth of 17-21%. This expected
quarter-on-quarter growth echoes a stronger business momentum in both
ams' consumer and non-consumer businesses driven by an improved
backlog and order intake as all end markets are expected to
contribute positively.

The adjusted operating margin for the second quarter (excluding
acquisition-based and share-based compensation costs) is expected to
be around break-even reflecting the current underutilization of
production capacity in ams' Heptagon business. This anticipated
underutilization in the second quarter is due to the installation of
additional production capacity for expected high volume ramp-ups in
the second half. The related adjusted EBIT margin excluding the
Heptagon business is expected to be above 18% of revenues.

The quarterly report for the first quarter 2017 including additional
financial information is available on the company website at
www.ams.com/eng/Investor/Financial-Reports . Concurrently, ams has
published the Annual Report 2016 which is also available on the
company website at www.ams.com/eng/Investor/Financial-Reports .

Further inquiry note:
Moritz M. Gmeiner
Vice President 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 Premstaetten
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

Original-Content von: ams AG, übermittelt durch news aktuell