austriamicrosystems reports continued growth in the second quarter and first six months of 2005
Key financial data for the second quarter and first half of 2005
austriamicrosystems reports continued profitable growth in the second quarter and first six months of 2005. The second quarter and first half of 2005 show substantial increases in revenues and operating profit, compared to last year.
Consolidated group revenues in the second quarter reached EUR 40.3 million, growing by 10% compared to the same quarter in 2004, in-line with expectations. Group revenues for the first six months of 2005 increased by 10% to EUR 75.6 million compared to the first half of 2004. In the second quarter we recorded a gross margin of 44% compared to 43% in the same quarter of last year. For the first half of the current year, gross margin stood at 44%, an increase of one percentage point compared to the first six months of 2004.
Taking into account a ramp-up-related increase in R&D costs and relatively stable SG&A costs compared to the same period last year, our result from operations (EBIT) for the second quarter grew to EUR 4.4 million, an increase of 16% from EUR 3.8 million in the second quarter of 2004. The result from operations (EBIT) for the first half-year of 2005 rose to EUR 8.5 million from EUR 6.1 million in the relevant period last year, an increase of 41%.
The net result for the second quarter grew strongly to EUR 3.5 million from EUR -9.6 million in the comparable period last year with last year’s result impacted by a one-time extraordinary non-cash adjustment due to legislation on a change in the Austrian corporate tax rate. Earnings per share for the second quarter were CHF 0.49 / EUR 0.32. The net result for the first half of 2005 amounted to EUR 6.4 million (CHF 0.90 / EUR 0.58 per share) compared to EUR -8.0 million (CHF -1.30 / EUR -0.84 per share) for the same period last year.
We continued our strong business performance in the second quarter given good demand for our products on a worldwide scale. Our advanced power management and lighting solutions for mobile devices are seeing very good market feedback and increasing penetration with customers like SonyEricsson and Motorola (CDMA version of the successful Razr handset). Our complete system solutions and analog front-end ICs for flash, hard disk and other MP3 players offer a full range of dedicated portable audio products for MP3-based applications. With a number of design efforts for MP3 devices underway at important customers, we are well positioned to participate in the continuing growth in the worldwide MP3 player market.
The industrial and medical market showed good performance with increasing demand for our healthcare solutions and continuing growth with key clients in metering and industrial automation. In the automotive segment, we saw the ongoing ramp-up of a key sensor interface product and an additional important project win. The foundry segment continued to perform well serving a variety of high quality customers.
To support future manufacturing requirements, we have triggered the next capacity build-out step in our wafer fab B which is envisaged to increase manufacturing capacity from 5,200 WSPM to 6,500 WSPM (wafer starts per month). We have also decided to initiate a ramp-down procedure for our legacy wafer fab A after 22 years of successful operation. The procedure is expected to be completed by year-end.
Looking forward, we see austriamicrosystems well positioned for further growth. Based on currently available information, we anticipate full year revenues for 2005 to increase by between 10 and 15% compared to last year, accompanied by substantial growth in earnings.
The complete half-year report 2005 including detailed financial information is available on austriamicrosystems’ website.
austriamicrosystems is a leading designer and manufacturer of high performance analog ICs, combining more than 20 years of analog design capabilities and system know-how with its own state-of-the-art manufacturing and test facilities. austriamicrosystems leverages its expertise in low power and high accuracy to provide industry-leading customized and standard analog products. Operating worldwide with more than 800 employees, austriamicrosystems focuses on the areas of power management, sensors & sensor interfaces, portable audio and car access through its business units Communications, Industry & Medical, Automotive and Full Service Foundry. austriamicrosystems is listed on the SWX Swiss Exchange in Zurich (ticker symbol: AMS).