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angle-left 11/14/2018 - ams updates fourth quarter outlook

ams updates fourth quarter 2018 outlook; discontinues previous reference to specific time periods for growth and profitability targets; expects annual double-digit revenue growth for the coming years

2018/11/14

German version

Premstaetten, Austria (14 November 2018) -- ams (SIX: AMS), a leading worldwide supplier of high performance sensor solutions, updates its fourth quarter 2018 outlook due to recent demand changes from a major consumer customer. As a consequence of the changes in customer demand, ams now expects fourth quarter revenues of USD 480-520 million, a sequential increase from the third quarter, based on current information. The adjusted operating margin for the fourth quarter (excluding acquisition-based and share-based compensation costs) is now expected to reach the low to mid-teens percentage range. ams continues to expect strong cash flow generation and a meaningful free cash flow (FCF) in the fourth quarter supporting its balance sheet structure.

ams sees increasing volatility in consumer customers’ demand patterns and related business planning which is not expected to decline. As a consequence, ams discontinues the previous reference to specific time periods for its mid-term targets for growth and profitability. ams continues to target further revenue growth and strong profitability and confirms a full multi-year product and design pipeline. ams therefore expects annual double-digit revenue growth for the coming years with an expansion of the adjusted operating margin towards ams’ target of 30%.