austriamicrosystems successful in the third quarter with growth in revenues, gross margin and earnings
Key financial data for the third quarter of 2007
austriamicrosystems (SWX:AMS), a leading global designer and manufacturer of analog ICs for the communications, industrial, medical and automotive markets, grew revenues, gross margin and earnings in the third quarter of 2007, given ongoing good demand for its analog semiconductor solutions from Europe, North America and Asia.
Consolidated group revenues for the third quarter 2007 reached EUR 51.1 million, compared to EUR 49.8 million the same quarter in 2006. Gross margin grew strongly by more than two percentage points to 50% from 48% in the same period last year. Despite ongoing R&D investments for product platform and process developments and an unstable exchange rate environment, the result from operations (EBIT) for the third quarter increased by 12% to EUR 9.1 million, from EUR 8.2 million in the same quarter last year.
The net result for the third quarter reached EUR 8.7 million, increasing 9% from EUR 7.9 million in the same period last year. Basic and diluted earnings per share for the third quarter were CHF 1.31 / EUR 0.79 up from CHF 1.14 / EUR 0.72 in the same period last year. Total backlog which does not reflect consignment stock agreements and therefore is not fully comparable to previous years stood at EUR 55.0 million on September 30, 2007 (EUR 65.1 million on September 30, 2006).
austriamicrosystems’ business performed well and in some areas slightly ahead of expectations in the third quarter. In communications, the ramp-up of lighting management products at key OEMs Nokia and SonyEricsson is developing positively with several released handset models very successful in the market and attaining high volume levels. austriamicrosystems was able to broaden its product reach into these customers through additional design-wins for power management, mobile entertainment and lighting products. SanDisk released new highly successful miniature MP3 players based on austriamicrosystems’ system solution.
Both the industrial and automotive markets showed continuing good performance with strength across a large number of product segments, including industrial sensors, rotary encoders and sensor interfaces for automotive and medical systems. In operations, austriamicrosystems saw further improvements in its manufacturing efficiency which coupled with product mix enhancements drove the positive development of its gross margin in the quarter.
austriamicrosystems anticipates revenues and earnings to show strong increases in the fourth quarter 2007, reflecting typical seasonality. Full year revenues and earnings for 2007 are expected to be impacted by the continuing weakness of the US dollar with full year revenue growth currently expected as a low single-digit percentage and full year earnings expected slightly below last year’s level, based on available information. Full year gross margin for 2007 is foreseen to improve meaningfully over last year.
Looking forward into 2008, austriamicrosystems is well positioned in its target markets and confident about its growth opportunities with designed-in products and new projects. Consequently, austriamicrosystems expects higher revenue growth as well as earnings growth in 2008, compared to this year.
The complete third quarter report 2007 including detailed financial information is available on austriamicrosystems’ website.
austriamicrosystems is a leading designer and manufacturer of high performance analog ICs, combining more than 25 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 1,000 employees, austriamicrosystems focuses on the areas of power management, sensors & sensor interfaces, portable audio and car access in its markets Communications, Industry & Medical and Automotive, complemented by its Full Service Foundry activities. austriamicrosystems is listed on the SWX Swiss Exchange in Zurich (ticker symbol: AMS).