austriamicrosystems reports first quarter financial results
Key financial data for the first quarter 2009
Unterpremstaetten, Austria (April 27, 2009) — austriamicrosystems (SWX: AMS), a leading global designer and manufacturer of high performance analog ICs for communications, industrial, medical and automotive applications, reports first quarter results showing a sharp decline in revenues compared to the first quarter last year and reflecting the impact of the global economic downturn.
Group revenues reached EUR 25.4 million, 38% lower than the EUR 41.1 million in the same quarter 2008. On a constant currency basis, current revenues were 42% lower compared to the first quarter last year. Gross margin fell sharply to 31% due to the significantly reduced wafer fab load and associated unabsorbed costs, down from 51% in the same period 2008.
The result from operations (EBIT) for the first quarter was, as expected, a loss. The loss amounted to EUR 8.5 million compared to a profit of EUR 3.7 million in the first quarter of 2008, clearly demonstrating the effect of the sluggish demand situation despite significant cost reductions. The first quarter net result was a loss of EUR 8.0 million compared to a profit of EUR 3.2 million in the same period last year.
Basic and diluted earnings per share for the first quarter were identical at CHF -1.13 / EUR -0.75 (CHF 0.47 / EUR 0.30 in the first quarter 2008). Total backlog which does not include consignment stock agreements stood at EUR 30.6 million on March 31, 2009 (EUR 48.2 million on March 31, 2008).
In the first quarter 2009, austriamicrosystems’ business showed a weak performance in a very difficult market environment caused by lower demand in the majority of austriamicrosystems’ target markets.
In its Communications business, austriamicrosystems saw decreased shipment volumes for its lighting management, power management and audio solutions for handsets and other devices, driven by weaker order volumes from major OEM supply chains. In the industrial market, demand for austriamicrosystems’ sensor and sensor interface products proved less resilient than in the last quarter while demand in medical applications remained relatively robust in comparison. The automotive market continued to be weak without showing signs of improvement.
austriamicrosystems nevertheless sees a solid level of design and development activity continuing with a large number of customers across its end markets. austriamicrosystems was also able to gain further design-wins and acquire new customers in the quarter. These will, however, not provide meaningful revenue contributions in the current year. austriamicrosystems’ wafer fab continues to run at a low utilization rate of less than 50% due to continuing weak order patterns in most of its markets.
Looking forward, the visibility regarding demand development in austriamicrosystems’ end markets has shown a slight improvement yet remains very limited across markets and regions. In light of this, austriamicrosystems continues to actively pursue further cost reduction opportunities in its business. At this time, austriamicrosystems is not in a position to provide revenue or earnings expectations for full year 2009. As stated earlier, austriamicrosystems expects a negative revenue development in the first half of 2009 compared to last year’s first half resulting in a negative first half year EBIT and net result.