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angle-left 02/29/2012 - austriamicrosystems reports financial results for fiscal year 2011

austriamicrosystems reports financial results for fiscal year 2011

2012/02/29

Audited financial information for fiscal year 2011 and fourth quarter 2011

German version

Financial Report Q4 + FY 2011

Q4 + FY 2011

Unterpremstaetten, Austria (February 29, 2012) — austriamicrosystems (SIX: AMS), a leading worldwide designer and manufacturer of high performance analog ICs for consumer & communications, industry & medical and automotive applications, recorded strong revenue and earnings growth in 2011 driven by fast growth in its consumer & communications business and despite a muted development of the industrial market in the second half.  2011 full year revenues increased by 32% to a record high of EUR 275.7 million (USD 383.3 million) while the operating profit grew by 59% to EUR 43.1 million. In the fourth quarter 2011, austriamicrosystems recorded revenues of EUR 81.0 million, up 40% year-on-year (39% in constant currency) and almost unchanged quarter-on-quarter, while the operating margin improved to 18%. For 2012, austriamicrosystems increases its full year guidance again and is now expecting revenue growth of more than 25% compared to 2011, together with faster earnings growth.

Financials

Audited group revenues for 2011 were EUR 275.7 million (USD 383.3 million), an increase of 32% from EUR 209.4 million recorded for 2010 and above the company’s full year guidance of EUR 270-275 million (USD 365-371 million). In constant currency, full year revenues increased by 38% compared to the previous year. Revenues for the fourth quarter 2011 were EUR 81.0 million, up 40% from the EUR 57.9 million recorded in the last quarter 2010 (39% in constant currency) and almost unchanged quarter-on-quarter.

Gross margins for the full year 2011 increased to 52% excluding an acquisition-related amortization charge and 51% including the acquisition-related amortization charge from 48% in 2010, driven by improved product mix, continued high utilization and manufacturing cost reductions. Gross margins for the fourth quarter 2011 were 53% excluding the acquisition-related amortization charge and 50% including the acquisition-related amortization charge, compared to 51% in the same period 2010.

The group result from operations (EBIT) for 2011 was EUR 43.1 million or 16% of revenues, up 59% from EUR 27.1 million in 2010. Investments in research & development amounted to EUR 50.8 million or 18% of revenues, driven by long-term product roadmaps and significant design-win activity throughout 2011. The group EBIT for the fourth quarter 2011 was EUR 14.3 million or 18% of revenues, up 51% from EUR 9.5 million in the fourth quarter 2010 and 10% from EUR 13.0 million in the previous quarter.

Net income for 2011 was EUR 35.3 million, up 53% from EUR 23.1 million in 2010. Basic / diluted earnings per share for 2011 were CHF 3.75 / 3.67 or EUR 3.04 / 2.98 (2010: CHF 3.08 / 3.03 or EUR 2.25 / 2.21). Net income for the fourth quarter 2011 was EUR 11.8 million, up 25% from EUR 9.4 million for the same period 2010. Basic / diluted earnings per share for the fourth quarter were CHF 1.13 / 1.11 or EUR 0.92 / 0.91 (2010: CHF 1.21 / 1.16 or EUR 0.92 / 0.89).

Cash flow from operations increased to EUR 70.3 million in 2011, up 54% from EUR 45.7 million in 2010. Cash and short term investments stood at EUR 65.0 million on December 31, 2011 compared to EUR 44.2 million at year-end 2010 while net debt was EUR 52.6 million at year-end 2011 (December 31, 2010: EUR 3.5 million). Capital expenditures for 2011 were EUR 17.7 million compared to EUR 13.2 million for 2010. The total backlog at the end of 2011 which does not include consignment stock agreements in major markets was EUR 90.0 million compared to EUR 66.4 million on December 31, 2010. The average number of group employees was 1,193 for fiscal year 2011, compared to 1,119 for the year 2010, and 1,253 for the fourth quarter 2011.

Based on the company’s cash dividend policy stipulating the distribution of 25% of net earnings austriamicrosystems will propose a dividend of EUR 0.64 per share for 2011.

Business

austriamicrosystems’ business showed a strong performance in 2011. With the addition of U.S.-based light sensor leader TAOS Inc. the company significantly expanded its market position in the global analog semiconductor market and extended its leadership in ultra-low power consumption, high accuracy and exceptional analog performance applications.

In the Consumer & Communications area, austriamicrosystems substantially strengthened its position as a major supplier to leading smartphone, handset and mobile device vendors last year. Through the acquisition of TAOS austriamicrosystems has become the leading provider of advanced optical sensors worldwide with roughly 40% market share. The company’s ambient light and proximity sensors improve usability and user experience for smartphones, tablet PCs, notebooks and desktop PCs with global smartphone and tablet PC leaders relying on austriamicrosystems’ light sensor products for mobile device power management.  Driven by fast market growth in smartphones and tablet PCs optical sensors recorded a major volume increase last year while additional design-ins expanded the company’s market reach. austriamicrosystems also continued to play a leading role in mobile lighting and power management with high shipment rates to top-tier device vendors. In MEMS microphone interfaces, austriamicrosystems confirmed its market leadership with volumes rising to over 1 billion units last year. The MEMS microphone market continues to grow based on smartphone and tablet PC growth and increasing penetration. The company’s pure analog ANC solution for the suppression of ambient noise is shipping in volume and winning accolades in high volume headsets. The LCD-TV LED backlighting market did not sustain the previous year’s momentum due to delayed technology adoption and lower end-market volumes while austriamicrosystems retained its technological lead. Solutions for RFID readers performed strongly last year with revenue growth in excess of 100% albeit from a low base. The RFID market offers outstanding opportunities for highly profitable growth for the company based on the austriamicrosystems’ clear technological leadership in authentication and payment systems.

The industrial and medical business recorded healthy growth and very positive results for 2011 despite a mixed development of major market areas. After a very strong first half with high order intake across industrial product lines, the industrial business experienced weaker order patterns and a deceleration in end market demand towards year-end and into the current year. A leader in industrial sensors, industrial automation and building control, austriamicrosystems was nevertheless able to fortify its market position last year: the industrial business expanded its industry-leading portfolio of magnetic encoders which includes the unique 3D-Hall position sensing technology and achieved first high profile design-wins in the demanding Japanese market, being chosen over Japanese competitors.

austriamicrosystems’ medical business recorded attractive growth last year given significant market success in the core area Medical Imaging (CT, digital X-ray, ultrasound). The company’s new integrated CT imaging sensor solution saw a strong increase in shipments delivering major diagnostic and cost advantages. Called a “revolutionary” innovation, the TSV (Through Silicon Via)-based technology allowed the company’s customer to reinforce its leadership in the global CT market. Overall, the medical business continues to benefit from long-term partnerships with leading OEMs.

austriamicrosystems’ automotive business performed well in 2011 driven by continued strong automotive demand worldwide. Focused on sensor and encoder solutions, battery power management and critical safety systems, the company’s automotive markets experienced healthy run rates and are seeing robust mass production volumes. The automotive business increased its revenue pipeline again last year winning designs at major system suppliers, including first wins for key Japanese suppliers. The company’s specialty foundry activities continued their success in 2011 serving a high quality client base with advanced specialty processes. Building on its reputation as a leading analog specialty foundry, the business area again provided an attractive contribution to the overall result.

austriamicrosystems’ global customer base grew significantly in 2011 as distribution revenues also saw a further healthy increase worldwide. The company successfully leveraged its expanded sales and support network in Asia Pacific and Japan to add substantial new customers and a number of high value projects. With rapidly increasing business opportunities, the Asia Pacific region is becoming an important driver of growth for austriamicrosystems going forward. At the same time, the successful integration of the added optical sensor business offers additional growth prospects for the future.

Outlook

Based on currently available information, austriamicrosystems is again increasing its 2012 full year guidance to reflect growth expectations for its consumer and communications business. austriamicrosystems is now expecting full year revenue growth for 2012 of more than 25% compared to 2011.  At the same time, the company anticipates gross margins to increase further and full year earnings to grow faster than expected 2012 revenues. austriamicrosystems will update its outlook during the year as more information becomes available.

In contrast to typical first quarter end-market seasonality, austriamicrosystems expects continued growth in revenues and earnings for the first quarter 2012 with revenues showing a solid quarter-on-quarter increase.