AMS posts Q3 revenue jump

23 October, 2019 12:00 AM printer

VIENNA: Apple supplier AMS beat expectations with a 41per cent jump in third-quarter revenue on Tuesday and forecast further strong demand for its optical sensors from smartphone makers as it takes aim at a takeover of German lighting maker Osram .

Revenue of US$645 million topped its own forecast of US$610-640 million and AMS said it expected a figure of US$610-US$650 million in the fourth quarter, report agencies.

AMS’ Swiss-listed shares, which gapped higher at the open, were down 0.9per cent at 0810 GMT.

Its adjusted EBIT margin was 28per cent and AMS said it expected to at least maintain this level in the fourth quarter.

Operating cash flow increased more than threefold to US$299 million, and AMS’s backlog stood at US$253.1 million end-September.

“AMS delivered even stronger results than expected and the outlook for the fourth-quarter also confirms the very solid business momentum not just with Apple but also the Android ecosystem,” Vontobel analysts said in a note to clients.

AMS’s main revenue source is optical sensors and Apple, its top customer, uses the Austrian firm’s 3D facial recognition technology in its latest iPhones.

Apple accounts for around 40per cent of group revenue, analysts estimate.

CEO Alexander Everke’s next aim is a takeover of Osram to combine AMS’s expertise in sensors with the German firm’s lighting know-how.

Everke’s first attempt failed this month as AMS secured 51.6per cent support from Osram shareholders, short of the required 62.5per cent.

Under a new bid, its offer price stays at 41 euros per share, valuing Osram at 4.6 billion euros (US$5.1 billion), but with a lowered acceptance rate of 55per cent.

Private equity groups Bain and Advent informed Osram on Friday that they would refrain from a takeover bid for the time being, and AMS hopes that will convince investors to tender their shares.

But sources familiar with the groups’ thinking told Reuters on Sunday that they were waiting in the wings and could revive their approach if AMS’s bid failed.