austriamicrosystems records revenue growth and higher profitability in the third quarter
Key financial data for the third quarter of 2006
austriamicrosystems (SWX: AMS), a leading global designer and manufacturer of analog ICs for communications, industrial, medical and automotive applications, grew revenues and earnings again in the third quarter of 2006, given ongoing good demand for its analog semiconductor solutions from Europe, North America and Asia. The third quarter of 2006 shows strong increases in operating profit and net result, compared to last year.
Consolidated group revenues for the third quarter 2006 reached EUR 49.8 million, an increase of 7% compared to the same quarter in 2005. Gross margin increased by three percentage points to 48% from 45% in the same period last year. Despite forward-looking R&D investments for product platform de­vel­opments based on recent design-wins, the result from operations (EBIT) for the third quarter grew to EUR 8.2 million, an increase of 30% compared to EUR 6.3 million for the same quarter last year (third quarter 2005 EBIT after restructuring costs).
The net result for the third quarter increased by 32% to EUR 7.9 million from EUR 6.0 million in the same period last year. Basic (diluted) earnings per share for the third quarter were CHF 1.14 / EUR 0.72
(CHF 1.14 / EUR 0.72), strongly up from CHF 0.85 / EUR 0.54 (CHF 0.85 / EUR 0.54) in the same period last year. Total backlog stood at EUR 65.1 million on September 30, 2006, up from EUR 60.7 million on September 30, 2005.
austriamicrosystems’ business continued to expand in the third quarter. The company did, however, experience a delay in production ramp-up by a major satellite radio customer which had a negative impact on revenue and EBIT growth and was due to a FCC-related regulatory issue that was resolved in the quarter. In other areas of the communications market, austriamicrosystems was able to broaden the number of future handset platforms employing its lighting management solutions at previously announced leading mobile handset manufacturers. The company’s mobile entertainment products continue to be successful with a range of top tier media player vendors. In the industrial and automotive markets austriamicrosystems sees continuing good demand for its integrated IC solutions.
austriamicrosystems’ strategic focus on expanding its analog standard product portfolio is becoming a key business driver across its target markets. The previously announced expansion of production capacity in the company’s 200mm wafer fab from 6,500 to 8,000 WSPM to support its growth plans is advancing as planned; the additional capacity is expected to be fully operational by the end of the first quarter 2007.
austriamicrosystems expects its business to continue to develop positively and revenues and earnings to show a strong increase in the fourth quarter of 2006. Due to the impact from delays in the mentioned customer’s production ramp-up schedule, austriamicrosystems anticipates full year revenue growth for 2006 to reach between 10 and 12.5%, based on current information.
Looking ahead to 2007, austriamicrosystems is confident about its growth opportunities with already designed-in products as well as new projects. austriamicrosystems therefore expects its full year revenue growth rate for 2007 to be higher than 2006, accompanied by a further meaningful increase in margins and earnings.
The complete third quarter report 2006 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).