News Article
austriamicrosystems lowers expectations
The company reports 6% revenue and 10% earnings growth in the third quarter, weakened demand environment expected for remainder of 2008 due to
economic headwinds.
economic headwinds.
austriamicrosystems a designer and manufacturer of analogue 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 analogue semiconductor solutions.
Group revenues reached €54.0 million compared to €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 unfavourable €/US$ exchange rate throughout most of the quarter, the result from operations (EBIT) for the third quarter was up 10% at €10.0 million compared to €9.1 million in the third quarter 2007. The third quarter net result grew by 8% to €9.4 million from €8.7 million in the same period 2007.
Basic and diluted earnings per share for the third quarter were CHF 1.38 / €0.86 (CHF 1.31 / €0.79 in the same period 2007). Backlog which does not reflect high volume consignment stock agreements stood at €45.0 million on September 30, 2008 (€55.0 million on September 30, 2007). Operating cash flow in the third quarter reached €17.9 million, strongly up from €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 analogue 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.
Group revenues reached €54.0 million compared to €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 unfavourable €/US$ exchange rate throughout most of the quarter, the result from operations (EBIT) for the third quarter was up 10% at €10.0 million compared to €9.1 million in the third quarter 2007. The third quarter net result grew by 8% to €9.4 million from €8.7 million in the same period 2007.
Basic and diluted earnings per share for the third quarter were CHF 1.38 / €0.86 (CHF 1.31 / €0.79 in the same period 2007). Backlog which does not reflect high volume consignment stock agreements stood at €45.0 million on September 30, 2008 (€55.0 million on September 30, 2007). Operating cash flow in the third quarter reached €17.9 million, strongly up from €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 analogue 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.
