AMS could sell units to finance buys - report (translated)
25 JUL 2018
AMS [SWX:AMS], the Austro-Swiss semiconductor company, could sell units to finance buys, Finanz und Wirtschaft reported.
The Swiss bi-weekly cited the AMS 2018 half year results' statement that states the company is actively evaluating strategic expansion opportunities, and could make a change to its business portfolio. AMS does not have sufficient finance to make large buys and could sell units to finance deals, the report stated. AMS CEO Alexander Everke told a telephone conference that there are interesting takeover candidates, the report noted.
Excerpt of AMS half year 2018 results statement:
ams has recently initiated a strategic review of specific business areas taking an active approach to align its business portfolio for long-term attractive growth, profitability and end market diversification.
Simultaneously, ams is actively evaluating strategic expansion opportunities in line with its strategy to build the global leader in sensor solutions based on its focus areas optical, imaging, environmental, and audio sensing.
Focused on enhancing ams’ long-term positioning, ams currently expects to provide an update on both developments in the fourth quarter 2018. While taking into account potential effects from possible future changes to its business portfolio, ams endorses its growth target for ams revenues of 60% CAGR for the 2016-2019 period.
At the same time, ams is convinced of the long-term strength of its business model and committed to driving balanced profitable growth. ams therefore also endorses reaching the target of 30% adjusted EBIT margin for ams in 2020, prudently taking into consideration potential financial effects that could result from possible future changes to its business portfolio.
Second quarter group revenues were USD 252.8m, down 42% sequentially compared to the first quarter and up 18% from USD 213.3m in the same quarter 2017. Group revenues for the first half of 2018 were USD 685.5m, up 76% compared to USD 388.7m recorded in the first half of 2017.