austriamicrosystems reports 6% revenue and 10% earnings growth in the third
quarter, weakened demand environment expected for remainder of 2008 due to
Key financial data for the third quarter 2008
Unterpremstaetten, Austria (October 27, 2008) — austriamicrosystems (SWX: AMS),
a leading global designer and manufacturer of high performance analog ICs for
communications, industrial, medical and automotive applications, showed 6%
revenue growth in the third quarter 2008 compared to the previous year, given
solid demand for its analog semiconductor solutions.
Group revenues reached EUR 54.0 million compared to EUR 51.1 million in the
third quarter last year. On a constant currency basis, current revenues grew by
9% compared to the same quarter 2007. Gross margin was strong at 51%, up from
50% in the same period 2007.
Despite an impact from the unfavorable EUR/USD exchange rate throughout most of
the quarter, the result from operations (EBIT) for the third quarter was up 10%
at EUR 10.0 million compared to EUR 9.1 million in the third quarter 2007. The
third quarter net result grew by 8% to EUR 9.4 million from EUR 8.7 million in
the same period 2007.
Basic and diluted earnings per share for the third quarter were CHF 1.38 / EUR
0.86 (CHF 1.31 / EUR 0.79 in the same period 2007). Backlog which does not
reflect high volume consignment stock agreements stood at EUR 45.0 million on
September 30, 2008 (EUR 55.0 million on September 30, 2007). Operating cash flow
in the third quarter reached EUR 17.9 million, strongly up from EUR 3.7 million
in third quarter 2007.
austriamicrosystems´ third quarter results reflect the strategic focus on the
company´s target markets which offer multiple opportunities to increase
austriamicrosystems´ market position in the future. Delivering high performance
analog ICs to a global high quality customer base, austriamicrosystems showed a
solid performance in the third quarter despite the negative developments in the
macroeconomic and capital markets environment towards the end of the quarter.
In the industrial market, austriamicrosystems recorded good volumes,
particularly in industrial sensors, rotary encoders and sensor interfaces for
medical applications, from a broad range of customers. The industrial market
continued to be a strong contributor to austriamicrosystems´ overall business.
In communications, austriamicrosystems again saw attractive volumes and
significant run rates for lighting and power management products at top tier
handset manufacturers as well as for MEMS microphone ICs. Despite negative news
flow from the automotive end market, austriamicrosystems´ automotive business
showed another solid performance in the third quarter, mainly driven by sensor
interfaces for critical systems.
austriamicrosystems expects the recent deterioration of the macroeconomic
outlook for important markets to impact its business going forward due to
customers showing increased cautiousness, delayed order patterns and shortened
order cycles. austriamicrosystems therefore foresees its business to show a more
flattish sequential revenue development in the fourth quarter. As a result,
austriamicrosystems anticipates full year 2008 revenues at around last year´s
levels and full year 2008 operating result to be approx. 10% below full year
2007, based on current information.
Looking out into 2009, austriamicrosystems is not yet able to assess how the
macroeconomic outlook and the uncertainties in its target markets will affect
its business in the coming year. austriamicrosystems is, however, taking
necessary steps including cost reductions to reflect a demanding environment.
The complete third quarter report 2008 including detailed financial information
is available on the austriamicrosystems website.