In the 4Q18 AMS achieved sales revenue of US$491.4 million, down 8.4 percent from $536.6 million in 4Q17. The net income was $1.1 million which compared with $117.0 million in 4Q17. For the full year 2018 AMS sales were $1.63 billion, up 34 percent from 2017 and net income was $106.6 million. The net income was comparable with the $101.3 million profit made in 2017.
The growth in annual sales was driven by AMS consumer business including 3D sensing and advanced light sensing but the fourth quarter slow down also reflected AMS' exposure to volatile consumer business. Because of that volatility and macro-economic uncertainties AMS forecast 1Q19 revenues of between $350 million and $390 million.
AMS said that its automotive, industrial, and medical businesses all performed well in 2018 and continue to provide a diversified range of non-consumer end markets with a clear focus on advanced sensing applications for global OEMs.
Capital expenditures for 2018 were $471.2 million compared to $663.9 million for 2017, particularly due to a expansion of manufacturing capacity in Singapore (see AMS opens Singapore site under $200 million plan).
AMS added that significant spending in Singapore has been completed and that capital expenditures would come down significantly in 2019. Because it does not see the need to raise money it has decided to postpone a previously planned secondary listing at the Hong Kong stock exchange (HKEx). The prerequisite jurisdiction admission process for Austria was successfully completed in December and AMS said it expects to pursue the planned secondary listing at a later point in time.
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