Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AMS AG. We currently have 8 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
A strong H2 17 guidance which dominates the actual release
07 Feb 17
ams reported Q3 revenues of €133.6m, corresponding to an 8.9% decrease sequentially and 9.2% yoy. The Products business line accounted for €115.7m (-12.1% sequentially, -15.1% yoy), leaving €17.9m to the Foundry business (+62.7% yoy). The adjusted gross margin reached 51.9% (49.3% in IFRS), down 490bp yoy (530bp in IFRS) following an expected customer-specific development; the adjusted EBIT, came in at €16.4m (€7.1m in IFRS), for a margin of 12.3% (vs. 5.3% in IFRS), leading to a net result of €13.7m. For Q1, the company expects revenues of between €141m and €148m, including consolidation of the Heptagon business. The adjusted EBIT margin is expected to be around breakeven due to consolidation effects from Heptagon. For 2017, Heptagon’s contribution is expected at about $300m, almost entirely in H2. The company announced a dividend of €0.3 per share, as well as the continuation of its share buy-backs up to CHF60m, mostly to cover Heptagon’s earn-out.
Weak guidance, and an acquisition which supposes flawless execution
25 Oct 16
ams reported Q3 revenues of €146.7m, corresponding to a 10.8% increase sequentially but a 4.1% decrease yoy. The Products business line accounted for €131.7m (+9.3% sequentially, -7.5% yoy), leaving €15m to the Foundry business (+41.5% yoy). The adj. gross margin reached 55.4% (53% in IFRS), down 160bp yoy (130bp in IFRS); the adj. EBIT, came in at €28m (€49.7m in IFRS), for a margin of 19.1% (vs. 33.9% in IFRS), leading to a net result of €55.9m. For Q3, the company expects a muted quarter due to a negative development concerning a particular customer in the consumer end market and a production yield issue in an industrial product line, the latter unlikely to be solved before early 2017. This will lead to expected revenues of between €127m and €134m, while the customer-specific development may result in negative profitability effects due to depreciation of work-in-progress inventory, leading to an expected adj. EBIT margin of 11-13%. Moreover, the company announced the acquisition of Heptagon, a specialist in micro-optics and optical sensing solutions with particular expertise in high performance optical packaging. The transaction includes an upfront consideration in cash ($64m) and shares (shares currently held in treasury combined with a 15% capital increase), for a total of $570m, as well as an earn-out consideration subject to future results but potentially as high as $285m. This takes the company’s potential value to $855m, i.e. 9.5x the current TTM revenues of $90m. These revenues are associated with negative profitability, which is expected to disappear following a capacity increase funded by $250m of existing cash and triggered by a specific customer commitment starting next year. The combination of the two activities is expected to result in a 30% CAGR for the coming three years with a profitability target of 30% EBIT margin from 2019; the deal is expected to close by early 2017.
2016 likely to be a blank year
26 Apr 16
ams reported Q1 revenues of €137m, corresponding to a 6.9% decrease sequentially and 10.6% yoy. The Products business line accounted for €127.5m (-6.4% sequentially, -10.7% yoy), leaving €9.5m to the Foundry business (-9.1% yoy). The gross margin reached 53.9%, down by 50bp yoy; EBIT, excluding acquisition-related costs, came in at €28.2m, for a margin of 20.6% (vs. 14.4% including these costs), leading to a net result of €13.6m. For Q2, the company expects significant volatility in the consumer market supply chain, as well as unfavorable currency effects, which will lead to expected revenues of between €127m and €134m. The gross margin should remain at a comparable level with Q1, while EBIT excluding acquisition-related costs should be in the 17-19% range.
Soft market conditions to hamper H1 performance
02 Feb 16
ams reported Q4 revenues of €147m, corresponding to a 5.9% growth yoy but to a 3.8% decrease sequentially. The Products business line accounted for €136m (-4.4% sequentially, +5% yoy), leaving €11m to the Foundry business (+18% yoy). The gross margin reached 54.6%, slightly increasing from the previous quarters; EBIT, excluding acquisition-related costs, came in at €33.7m, for a margin of 22.8% (vs. 19.9 % including these costs), leading to a net result of €31m. For the full year, revenues increased by 34.2% at €623m, for a stable gross margin of 54.4% (including acquisition-related costs) and an operating profit of 23.5% also including these costs. For Q1, the company expects weaker demand due to traditional seasonality and softer market conditions in the consumer space, leading to revenues expected between €131-138m, while the gross margin should remain stable; the operating margin is expected between 18% and 20%. For the full year, the company is expecting its top-line to show some growth.
A positive further move in the CMOS sensor space
20 Nov 15
ams has announced the acquisition of CMOSIS, a fabless provider of sensor and analog solutions for machine vision, medical, photographic and scientific imaging. The company is present in Belgium, Germany, Portugal and the US, and has more than 110 employees.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
N+1 Singer - Morning Song 24-04-2017
24 Apr 17
First Derivatives (FDP LN) FY slightly ahead as strong trading momentum continues | Goals Soccer Centres (GOAL LN) A potentially exciting corporate development | mporium Group (MPM LN) 2016 results: course set for exciting 2017 | Vectura Group (VEC LN) VR315 risk outweighs longer-term potential
Recovery not reflected in the share price
25 Apr 17
Prelims for the year to January 2017 are in-line but more importantly they confirm the restructuring process is now complete, prove the commerciality of its cloud based platform and demonstrate a move towards higher margin services. PBT was £1.2m (against a loss last year), adjusted EBITDA grew 56% to £2m and cash from operations turned positive at £0.9m allowing a net cash position to be maintained. For this year, we expect PBT growth of 77% to £2.2m (previously £2.5m), implying a current PE rating of 15x. We reiterate our buy recommendation with a 2.2p price target as the turn around generated by Redstone has yet to be reflected in the share price.
Earnings upgrade following acquisition
17 Apr 17
Following the recent acquisition of Ingresso we upgrade our estimates by c10% in 2017. Ingresso owns and operates a software platform which enables sales through global third party distribution channels. This looks another smart acquisition by ACSO who continue to create a more efficient flow in the extremely fragmented leisure and ticketing industry. We increase our T/P to 2000p and upgrade to BUY.