EANS-Adhoc: ams AG / ams reports record third quarter revenues and earnings ahead of expectations; expects revenue growth and strong profitability in fourth quarter

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Financial Figures/Balance Sheet/9-month report
20.10.2014

Key financial data for the third quarter 2014

Unterpremstaetten, Austria (20 October 2014) - ams (SIX: AMS), a
leading provider of high performance sensor solutions and analog ICs,
reports third quarter 2014 revenues and profitability ahead of
expectations with both gross margin and operating profitability (EBIT
margin) increasing substantially year-on-year. Based on additional
product ramp-ups, ams expects revenue growth and ongoing strong
profitability in the fourth quarter 2014.

Third quarter group revenues were EUR 132.8 million, the highest
quarterly revenues in the company's history, up 25% sequentially
compared to the second quarter and up 35% from EUR 98.2 million in
the same quarter 2013. On a constant currency basis, third quarter
revenues were 34% higher compared to the third quarter last year.

Gross margin remained on a record level of 57%, excluding
acquisition-related costs, and 55%, including acquisition-related
costs, compared to 55%, excluding acquisition-related costs, and 53%,
including acquisition-related costs, in the same quarter 2013.

The result from operations (EBIT) excluding acquisition-related costs
for the third quarter rose to the record level of EUR 37.4 million or
28% of revenues, compared to EUR 22.5 million in the third quarter of
2013. The result from operations (EBIT) including acquisition-related
costs for the third quarter was EUR 34.5 million or 26% of revenues,
compared to EUR 20.0 million in the same period 2013. The net result
for the third quarter was EUR 31.9 million compared to EUR 18.6
million in the same period 2013. Basic/diluted earnings per share
were CHF 0.57/0.54 or EUR 0.47/ 0.45 based on 68,071,765/70,796,466
shares (basic/diluted; weighted average) compared to CHF 0.34/ 0.33
or EUR 0.28/0.27 based on 67,220,166/69,181,615 shares
(basic/diluted; split-adjusted weighted average) in the third quarter
2013.

Operating cash flow for the third quarter was EUR 37.1 million,
compared to EUR 34.0 million in the third quarter last year. Total
backlog on 30 September 2014 (excluding consignment stock agreements)
was EUR 119.8 million, compared to EUR 107.1 million on 30 June 2014
and EUR 91.2 million on 30 September 2013.

ams' business performed strongly in the third quarter given good
demand in key end markets, the launch of a major new customer
platform and ams' attractive position in sensor and analog solutions.

In ams' consumer and communications business, the company's
innovative gesture sensor solution continued to ship into major
device platforms at a brisk pace. The module combines advanced
gesture recognition with RGB color and proximity sensing and mobile
coupon redemption in a minimized footprint. ams added another global
device platform during the quarter and is seeing good traction for
gesture sensing with Asian smartphone OEMs. Shipments of ams' broad
portfolio of intelligent light sensors and lighting and power
management products to major smartphone and device vendors remained
at high levels in the quarter. The company's microphone IC business
for a wide range of low noise applications continued to perform well
at high run rates.

The expected steep ramp-up of high volume shipments for ams' unique
NFC antenna booster supported the launch of a major global smartphone
platform. As projected, NFC was therefore an important growth driver
for ams in the third quarter with shipments continuing at very
substantial levels. ams' NFC antenna booster is key to enabling
robust and dependable NFC in smartphones and other mobile devices.
The solution ensures optimum signal transmission in complex or
space-constrained device environments for successful NFC payment
transactions.

ams' industrial, medical and automotive businesses recorded another
quarter of positive results. Demand in the company's industrial
end-markets remains on attractive levels supporting the momentum of
its diversified industrial business in the second half. ams' high
performance sensors and sensor interfaces play a central role in a
wide range of industrial applications for leading OEMs. Sensor
solutions for digital imaging, which includes advanced computed
tomography (CT), mammography, and ultrasound, were again key drivers
for ams' high value medical business.

In the company's automotive business, healthy demand for ams' sensor
and sensor interface solutions continued in the third quarter.
Innovative safety systems such as LIDAR collision avoidance and
critical applications including battery power management are built
around ams' sensor expertise. The company's products enable higher
safety and reliability for an increasing number of volume platforms.

Given its full development pipeline ams has decided to accelerate an
additional investment into the company's internal production capacity
in order to prepare for major growth opportunities in the coming
years. ams plans to implement part of this investment for
approximately 20% additional wafer capacity in the current year and
therefore expects capital expenditures for 2014 to increase by around
EUR 10 million to EUR 65-70 million.

For the fourth quarter 2014, ams expects sequential and year-on-year
revenue growth with revenues of EUR 133-138 million. Additional
ramp-ups in Consumer & Communications for new devices are expected to
drive this growth. ams sees strong profitability continuing in the
fourth quarter and expects EBIT margin on a comparable level
quarter-on-quarter.

ams' investments in R&D and production infrastructure underline the
company's confidence in the strong development of its business in the
future driven by the emerging markets for sensor solutions in our
daily lives. These investments align with ams' growth outlook for the
coming year and for substantial mid-term growth in revenues and
earnings.

The company's third quarter report 2014 including additional
financial information is available on the company website at
http://www.ams.com/eng/Investor/Financial-Reports .

###

About ams

ams develops and manufactures high performance analog semiconductors
that solve its customers' most challenging problems with innovative
solutions. ams' products are aimed at applications which require
extreme precision, accuracy, dynamic range, sensitivity, and
ultra-low power consumption. ams' product range includes sensors,
sensor interfaces, power management ICs and wireless ICs for
customers in the consumer, industrial, medical, mobile communications
and automotive markets. With headquarters in Austria, ams employs
over 1,500 people globally and serves more than 7,800 customers
worldwide. ams is listed on the SIX Swiss stock exchange (ticker
symbol: AMS). More information about ams can be found at www.ams.com.

Further inquiry note:
Moritz M. Gmeiner
Director Investor Relations
Tel: +43 3136 500-31211
Fax: +43 3136 500-931211
Email: investor@ams.com

end of announcement euro adhoc
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issuer: ams AG
Tobelbader Strasse 30
A-8141 Unterpremstaetten
phone: +43 3136 500-0
FAX: +43 3136 500-931211
mail: investor@ams.com
WWW: www.ams.com
sector: Technology
ISIN: AT0000A18XM4
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language: English