Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AMS AG. We currently have 7 research reports from 1 professional analysts.
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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.
Signs of stabilisation
26 Jul 16
ams reported Q2 revenues of €132m, corresponding to a 3.4% decrease sequentially and 21.9% yoy. The Products business line accounted for €120.5m (-5.5% sequentially, -23.6% yoy), leaving €11.9m to the Foundry business (flat yoy). The gross margin reached 53.4%, down by 100bp yoy; EBIT, excluding acquisition-related costs, came in at €24.4m, for a margin of 18.4% (vs. €16.7m and 12.6% including these costs), leading to a net result of €19.6m. The company also announced the acquisition of the colour and spectral sensing systems specialist MAZeT, based in Germany and employing 80 people, for an undisclosed amount in cash. The company had also acquired during the quarter Cambridge CMOS Sensors (CCMOSS), a specialist in gas and infrared sensors, based in Cambridge and employing 33 people, once again for an undisclosed amount in cash. For Q3, the company expects positive momentum in the consumer business, which will lead to expected revenues of between €146m and €153m (vs. €153m in Q3 15). The adjusted gross margin should remain at a comparable or slightly lower level to Q2, while EBIT excluding acquisition-related costs should be in the 18-20% range. 2016 capex is expected above €80m to support the expected customer uptake of the latest generation of sensors.
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. The price paid is €217m, with 2015 revenues expected at around €60m and to be growing next year. The operating profitability is higher than ams’. The transaction will be funded through existing cash and credit lines, no additional financing being required, and is expected to close within the next six weeks.
Soft guidance and uncertainties on NFC licensing
27 Oct 15
ams reported Q3 revenues of €153m, corresponding to a 15.2% growth yoy but to a 9.8% decrease sequentially. The Products business line accounted as usual for most of the top-line with €142m (-9.7% sequentially, +15.8% yoy), leaving €11m to the Foundry business (+8% yoy). The gross margin reached 54.3%, stable compared to the three previous quarters; EBIT excluding acquisition-related costs came in at €37m, for a margin of 24.8% (23% including these costs), leading to a net result of €34m. For Q4, the company expects softer demand, in both the consumer and non-consumer markets, and is expecting revenues between €137m and €142m, a stable gross margin but lower operating profitability due to heavy R&D investments.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - NCC Group - Interims confirm underlying business sound
19 Jan 17
NCC’s interim results were largely flagged in the detailed trading update released in December. Group revenue increased 35% to £125.8 (organic growth +18%) and adj. EBITDA grew 15% to £21.3m. The group’s issues relating to contract losses/deferrals in the period were previously announced and are already included in our forecasts. The group has maintained its interim dividend at 1.5p, which we believe is an indication of the strong underlying business. Separately, NCC has announced that Paul Mitchell intends to step down as chairman in May ’17. We continue to believe that NCC remains a highly attractive asset in an area seeing strong structural growth and see the current share price weakness as an opportunity. We retain our Buy recommendation and 233p target price.
N+1 Singer - dotDigital Group - Trading update
17 Jan 17
dotDigital issued a trading update for the six months ended 31 December 2016, indicating revenue growth up 17% y-o-y to £15.0m with EBITDA in line with market expectations and on track for the full year. Cash has grown to £18.9m. Revenue was slightly light of expectations owing to a slower start in the US but Q2 already showed improvement with a strong pipeline building. Our EBITDA and EPS forecasts are unchanged but revenues trimmed by 4% for both years. There is much activity in broadening avenues of growth in terms of new connectors, partnerships and geographical footprint and we remain positive of its prospects. Interim results will be released on Feb 21.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.