LONDON – Analog IC and sensor company AMS AG, formerly known as Austriamicrosystems, has said it expects its lower sales in the second half of 2013 because ramp ups for some designed-in chips are now expected to occur late in 2013 or the first months of 2014.
The forecast given alongside the first quarter financial results on April 22, was that 2013 full year revenue growth would exceed 10 percent compared to 2012 with even stronger growth in profitability.
In the latest guidance AMS (Unterpremstaetten, Austria) said it still expects year-on-year revenue growth in 2013 but did not quantify this. AMS said it has several design wins for its chips in upcoming smartphone and tablet computer device platforms that are now expected to ramp in 2014. AMS said it will report second quarter and first half 2013 results including a business outlook for the third quarter 2013 on July 22.
Prior to the announcement of the 1Q13 financial results John Heugle, then CEO, had informed the supervisory board of the company that he would not extend his contract beyond February 2014 but that he would continue to serve with full commitment as CEO up until then. AMS subsequently announced that Heugle had agreed to step down from the position of CEO of the company with immediate effect and that Kirk Laney, head of the optical sensors and lighting business unit, had become interim CEO.
I would think that AMS should not have been surprised by a push out from customers given the current and past market conditions. I am wondering if there is something else to the push backs, like maybe a major customer faltering or price pressure lowering profits?