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austriamicrosystems reports third quarter results

Key financial data for the third quarter of 2009

Unterpremstaetten, Austria (October 26, 2009) — austriamicrosystems (SIX: AMS), a leading global designer and manufacturer of high performance analog ICs for communications, industrial, medical and automotive applications, reports a solid sequential revenue and earnings improvement in the third quarter of 2009. Business conditions improved in the quarter and are expected to remain positive for the fourth quarter compared to the first half of 2009.

Third quarter 2009 group revenues were EUR 39.5 million, a sequential quarter-on-quarter increase of 40% and a decrease from EUR 54.0 million in the same quarter 2008. Gross margin was 37%, up 15 percentage points sequentially but down from 51% in the same period 2008. The result from operations (EBIT) for the third quarter improved sequentially to EUR -0.2 million (EUR 10.0 million in the third quarter 2008) even taking into account an unfavorable EUR/USD exchange rate development in the quarter. The third quarter net result was EUR -0.6 million (EUR 9.4 million in the same period 2008). Basic and diluted earnings per share for the third quarter were CHF -0.08 / EUR -0.05 (CHF 1.38 / EUR 0.86 in the same period 2008).

Total backlog (excluding consignment stock agreements) on September 30, 2009 was EUR 35.8 million, compared to EUR 45.0 million on September 30, 2008 and EUR 35.1 million on June 30, 2009. Cash and short-term investments totaled EUR 43.6 million on September 30, 2009, up from EUR 37.5 million on June 30, 2009. austriamicrosystems has further untapped credit lines available. Operating cash flow in the third quarter turned positive to EUR 6.2 million (EUR 17.9 million in the third quarter 2008).

austriamicrosystems’ business showed a strongly improved performance in the third quarter, particularly in communications where the company saw increasing run rates and healthier order patterns for power and lighting management and MEMS microphones. In addition, LCD TV backlighting shipments continued to increase in the quarter. The industrial market, however, remains challenging with limited shipment volumes and subdued demand across most areas, a situation which austriamicrosystems expects to continue into 2010. austriamicrosystems’ automotive business showed signs of improvement in the third quarter despite short-term ordering and continuing low visibility. These developments enabled better utilization rates in our production which had a positive effect on gross margins and EBIT. At the same time, design activities with customers and design-wins remained robust across our focus areas.

austriamicrosystems completed a strategic minority investment of USD 3.5 million (EUR 2.5 million) for a 30% shareholding in US-based privately held FlipChip International, a leading provider of IP and production services for wafer level packaging (WL-CSP), in the third quarter. This investment ensures optimal access to current and next generation high-end packaging technology and assembly capacity for important high volume product lines including advanced handset power management.

austriamicrosystems expects the improved business conditions to continue in the fourth quarter, yet visibility remains limited with choppy and shortened order patterns. Therefore austriamicrosystems anticipates its business to show a sequentially positive revenue development in the fourth quarter compared to the third quarter and a positive cash flow. Based on current information and with the impact from the difficult market conditions in 2009, austriamicrosystems expects full year 2009 revenues to exceed EUR 133 million.

The complete third quarter report 2009 including detailed financial information is available on austriamicrosystems’ website.


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