austriamicrosystems, a leading worldwide designer and manufacturer of high performance analog ICs for communications, industry and medical and automotive applications, recorded audited revenues for fiscal year 2007 slightly below the previous fiscal year and below company expectations.
The revenue development was negatively impacted by a shortfall in the mobile entertainment business and the continued adverse EUR/USD exchange rate in the second half and the seasonally strong fourth quarter 2007. austriamicrosystems’ power and lighting management, car access, sensor and sensor interface products – which account for the majority of revenues – performed well in fiscal year 2007.
Group revenues reached EUR 193.9 mln, 1.3% or EUR 2.5 mln below the previous year’s revenues. Revenues for the fourth quarter 2007 were EUR 59.5 mln, 4.0% or EUR 2.5 mln lower than the EUR 62.0 mln recorded in the same quarter 2006 but up 16% on a quarter-on-quarter basis.
Gross margin for full year 2007 exceeded 50% for the first time, up more than two percentage points from 48% for the previous year. The strong increase despite a disappointing revenue development was driven by ongoing cost benefits from the expansion of the 200mm wafer fab, higher overall production efficiency and positive changes in the product mix.
Investment in research & development increased by EUR 5.7 mln in 2007 compared to 2006, reaching 22% of revenues to support major design-wins and roadmaps for future business growth. The group EBIT for the fourth quarter 2007 was EUR 10.9 mln, EUR 3.9 mln lower than the EUR 14.8 mln recorded in the same period 2006.
As a leader in low power consumption, high accuracy and analog performance, austriamicrosystems launched innovative products and product families in 2007 with a focus on power and lighting management, specialty sensors and sensor interfaces. In Communications, austriamicrosystems ramped several lighting management products for leading handset OEMs Nokia and SonyEricsson, reaching substantial volumes and run rates by year-end. austriamicrosystems was also successful in mobile entertainment despite the revenue shortfall, completing the development of its new product generation and supplying system solutions and power management and audio ICs in high volumes.
Industry & Medical had another successful year with attractive growth in digital X-ray components, industrial rotary encoders and specialized sensor interfaces, complemented by strong business in industrial automation and control. Automotive showed a very positive development, driven by sensor interfaces for automotive safety systems, a new product ramp-up for position measurement and continuing access business.
Asia/Pacific was again a key region in 2007, particularly for Communications products. The Full Service Foundry business unit enhanced its position as a leading analog foundry focused on specialty processes, driving margins as customer conversion to specialty technologies continues.
With its growing portfolio of high performance standard products and customer-specific solutions for leading OEMs, austriamicrosystems is well positioned in its target markets Communications, Industry & Medical and Automotive.
Based on available information, austriamicrosystems expects to return to growth in 2008 and to record a substantial increase in revenues and earnings for full year 2008 compared to 2007, with growth concentrated in the second half of the year.
