ams AG - global leader in the design and manufacture of high performance analog ICs (integrated circuits)
Home / Investor / Financial News / News Archive 2005/2004 / Monday 17 May 2004

Financial News

2004/05/17

austriamicrosystems announces successful Initial Public Offering


Offer price of CHF 35 per share

Unterpremstätten, Austria, May 17, 2004 - austriamicrosystems AG (or the "Company") announces its successful Initial Public Offering and the listing of its shares on the main segment of the SWX Swiss Exchange. The Offer Price for the IPO was CHF 35 per share.

  • The Offer comprises an aggregate of 3.7 million shares, consisting of 1.7 million shares from existing shareholders and 2.0 million new shares issued by the Company. The Offer represents 33.6% of the Company's issued share capital of 11 million shares, and corresponds to a total offer size of CHF 129.5 million (EUR 84.1 million).
  • Based on the Offer Price, the market capitalization of the Company will be approximately CHF 385 million (EUR 250 million).
  • In connection with the Offer, the Joint Global Coordinators have been granted an option by certain selling shareholders to purchase up to 555,000 shares at the Offer Price to cover over-allotments, if any. The over-allotment option will be exercisable until June 18, 2004.
  • After the Offering, private equity funds advised by Permira will hold a stake of 58.7% of the Company. If the over-allotment option is exercised in full, they will own 53.8%.
  • Trading in the shares starts today, May 17, 2004 at 9:00am CET under the ticker symbol AMS.
  • Citigroup and UBS Investment Bank acted as Joint Global Coordinators.

John Heugle, Chief Executive Officer of austriamicrosystems AG, said: "We are pleased to announce a successful transaction in the face of difficult capital market conditions. We have been very encouraged by the quality of the investors we have attracted and welcome them as shareholders. In returning to the stock exchange, we will raise our profile as one of the leading analog and analog-intensive mixed-signal companies globally. Our flotation further improves our financial strength supporting accelerated sales and profit growth."

Enquiries to:

austriamicrosystems

Sonja Pieber-Hascher

+43 (0) 3136 500 5968

Moritz Gmeiner

+43 (0) 3136 500 5970

Citigroup

Jeremy Hughes

+44 (0) 20 7986 4000

Tom Attenborough

Roger Barb

UBS

Jacob Sayer

+44 (0) 20 7567 4067

Tino Tratschin

+41 (0) 1 239 3606

Markus Aisslinger

Brunswick

Christine Graeff

+49 69 24 00 55 10 / +49 174 327 8886

Tom Buchanan

+44 20 7404 59 59

The information contained herein is not for publication or distribution in the United States of America. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under that Act or an available exemption from it. There is no intention to conduct a public offering of the securities in the United States. These materials do not contain or constitute an offer of securities for sale in the United States.

This document is directed at and/or for distribution in the U.K. only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (ii) high net worth entities falling within article 49(2)(a) to (e) of the Order (all such persons being together referred to as "relevant persons"). This document is directed only at relevant persons. Other persons should not act or rely on this document or any of its contents. This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any other purpose.

No prospectus within the meaning of Article 2 of the Austrian Capital Market Act (KMG) has been or will be prepared in Austria in connection with the Offering of the Securities. The Securities may only be offered in Austria on a private-placement-basis within the meaning of Article 1 para 1 KMG or to a limited group of professional investors in the meaning of Article 3 (1) (11) KMG.

This document does not constitute an offer or invitation to purchase securities. This document is not a prospectus in the sense of article 652a of the Swiss Code of Obligations and the information contained herein should not be relied upon when deciding on whether to make an investment by purchasing securities or otherwise.

No prospectus within the meaning of the German Securities Sales Prospectus Act (the "SPA") has been or will be prepared in connection with the offering. The securities will be offered in the Federal Republic of Germany solely to persons who purchase or sell securities as part of their trade, profession or occupation pursuant to Section 2, No. 1 of the SPA and/or who are a part of a restricted circle of investors who have been selected by the offeror(s) and are informed enough to understand the possible investment risks involved pursuant to Section 2, No. 2 of the SPA.

Notes to editors

Overview of austriamicrosystems

austriamicrosystems sells a broad range of highly integrated Application Specific Integrated Circuits ("ASICs") and Application Specific Standard Products ("ASSPs"), and more recently, Standard Linear products. It has identified the following key markets and applications with an increasing demand for high volume analog and mixed-signal ICs, and where it believes its intellectual property library and design expertise give it a significant competitive advantage:

  • Communications products, including mobile entertainment and consumer electronics devices, such as mobile phones and mobile audio players, touch screens, LED drivers and MEMS silicon microphones;
  • Medical applications, including home health devices, such as glucose meters, insulin pens, medical imaging, pacemakers, heart rate monitors and electronic personal care applications; and
  • Industry applications, such as electronic meters for electricity, water and heat, as well as various sensor interfaces, drivers for motors and printers, and Micro Electromechanical Systems ("MEMS")-interfaces; and
  • Automotive products, such as keyless go and keyless entry systems, ESP systems, rain sensors and motor controllers.

The Company enjoys strong relationships with leading players in these markets and has been selling products to many of them for over ten years. It has more than 370 current customers, which include industry-leading companies such as Appeal (a subsidiary of Motorola), Delphi, Hella, Honeywell, Kostal, Marquardt, Nokia, Panasonic, Roche, Sagem, Samsung, Schlumberger, and Siemens.

Consolidated Financials

For the year ended December 31, 2003, austriamicrosystems Group reported revenues of €134.4 million (2002: €129.2 million) and net income of €0.6 million (2002: net loss of €61.0 million including a restructuring and impairment charge of €86.4 million). For the three months ending March 31, 2004, revenues were €32.3 million (2003: €25.2 million) and net income amounted to €1.6 million (2003: net loss of €1.9 million).

Key Strengths

Analog design expertise

The company believes its products offer industry-leading performance in the analog-intensive applications of power management, high voltage device drivers, low-noise sensor interfaces, and radio frequency. austriamicrosystems has over 200 dedicated analog and mixed-signal engineers combining long-standing industry experience with expertise in analog design tools and process.

Market and system know-how, driving a strong product pipeline

The strong customer relationships built by the Company's direct sales force and field applications engineers allow the Company to develop a detailed understanding of the system needs of Original Equipment Manufacturers ("OEMs") and Original Design and Manufacturing companies ("ODMs") in its focus market segments. This know-how guides the Company's product development efforts and has enabled it to win design-ins with numerous customers over recent years, both for ASICs and ASSPs. austriamicrosystems currently has more than 160 design projects in collaboration with specific customers.

Sole source supplier with long-term customer relationships

The Company is a sole source supplier of specific analog and mixed-signal ICs for many of its customers, both for ASICs and ASSPs, and it has achieved a high rate of customer retention. austriamicrosystems offers its customers stable engineering support as well as manufacturing and testing over an entire product life cycle, which can sometimes be as long as ten years.

Global sales and engineering support network

Since the beginning of 2001, the Company's global sales team of field sales engineers and field application engineers grew from 23 to 36 as of the end of 2003. Over the same period, the number of its sales offices worldwide increased from nine to 16, located in the main centers of the semiconductor industry throughout Asia Pacific, Europe and North America. Direct sales force and field application engineers constantly work with the Company's customers to identify their ongoing needs and new applications. This provides critical market intelligence for austriamicrosystems' marketing engineers to respond to customer demands with innovative products.

State-of-the art manufacturing and specialty processes

During 2002, the Company completed construction of a new state-of-the-art eight-inch wafer fabrication facility ("fab") close to its existing fab at austriamicrosystems' headquarters near Graz, Austria. With selected equipment investments that would require relatively low additional capital expenditures austriamicrosystems can significantly increase its wafer fabrication capacity over the coming years. The Company believes that this additional capacity will enable it to exploit possible industry capacity constraints and to provide its customers with confidence in its ability to deliver. The Company believes that the significant investments and development time required to develop specialty processes represent an important barrier to competitors entering the analog and analog-intensive mixed-signal IC market.

Management strength and experience

austriamicrosystems' senior management team consists of eight members with varied, international backgrounds. All have long-standing expertise in the semiconductor and/or technology industry, and several members of the team were with the Company when it was founded.

Key Management CV's

  • John A. Heugle (46) was appointed member and chairman of the management board in April 2002. In his 22 years of experience, he played a significant role in the successful repositioning of several companies in Europe, America and Asia Pacific. He has held top management positions with private and publicly listed companies in the electronics and technology industries, including Molex Inc., United Wearnes Technology, Stocko Metallwarenfabriken GmbH, Krone AG and AdPhos AG. Mr. Heugle holds a Bachelor of Science degree in metallurgical engineering from the University of Oklahoma and a Master of Science degree in materials science from Northwestern University. Mr. Heugle is a United States citizen.
  • Michael Wachsler-Markowitsch (36) joined the Company in 2001 and has been its Chief Financial Officer since 2003. He was appointed member of the management board in February 2004. Formerly, he was CFO of Ahead Communications AG, the prior Ericsson Multi Service Access Division, where he was member of the buy-out team with significant international experience in China and South America. Prior to that, he was a tax advisor and auditor with KPMG. Mr. Wachsler-Markowitsch has more than ten years experience in all aspects of international corporate financial, controlling and tax reporting systems. He is a graduate of the Vienna University of Business Administration. Mr. Wachsler-Markowitsch is an Austrian citizen.

The information contained herein is not for publication or distribution in the United States of America. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under that Act or an available exemption from it. There is no intention to conduct a public offering of the securities in the United States. These materials do not contain or constitute an offer of securities for sale in the United States.

This document is directed at and/or for distribution in the U.K. only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (ii) high net worth entities falling within article 49(2)(a) to (e) of the Order (all such persons being together referred to as "relevant persons"). This document is directed only at relevant persons. Other persons should not act or rely on this document or any of its contents. This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any other purpose.

No prospectus within the meaning of Article 2 of the Austrian Capital Market Act (KMG) has been or will be prepared in Austria in connection with the Offering of the Securities. The Securities may only be offered in Austria on a private-placement-basis within the meaning of Article 1 para 1 KMG or to a limited group of professional investors in the meaning of Article 3 (1) (11) KMG.

This document does not constitute an offer or invitation to purchase securities. This document is not a prospectus in the sense of article 652a of the Swiss Code of Obligations and the information contained herein should not be relied upon when deciding on whether to make an investment by purchasing securities or otherwise.

No prospectus within the meaning of the German Securities Sales Prospectus Act (the "SPA") has been or will be prepared in connection with the offering. The securities will be offered in the Federal Republic of Germany solely to persons who purchase or sell securities as part of their trade, profession or occupation pursuant to Section 2, No. 1 of the SPA and/or who are a part of a restricted circle of investors who have been selected by the offeror(s) and are informed enough to understand the possible investment risks involved pursuant to Section 2, No. 2 of the SPA.

Contact

Media Contact

Otilia Ayats-Mas
Director Marketing Communications

+1 469 298 4277