EANS-Adhoc

ams AG / ams reports first quarter 2017 results above previous guidance; sequential revenue growth expected for second quarter; fully on track for expected second half 2017 ramp-ups; significantly increased customer forecasts and revenue pipe - Seite 3

year. ams' strong market position in industrial sensing is based on
differentiated sensor and sensor interface solutions that enable high
performance applications for leading OEMs and their customers
globally. In ams' medical business, digital imaging sensor solutions
for computed tomography (CT), digital X-ray, and mammography
continued their attractive contribution driven by technology
leadership. New Asian customers are offering future opportunities in
this area. ams' automotive sensing business is built around sensor
and sensor interface technologies for safety, driver assistance,
position, and emerging applications where ams sees good demand
continuing this year.

ams expects significant high volume ramp-ups in its consumer business
in the second half of 2017. ams' preparation for these growth
opportunities is fully on track and related activities are
progressing to plan. ams is seeing significantly increased customer
forecasts and a higher revenue pipeline for 2017 and particularly
2018 while ams is adding new projects and additional design-wins. As
a consequence, ams is strongly increasing its capital expenditures
this year and now expects group capital expenditures of around EUR
400-450 million in 2017. This increase includes additional equipment
investments for optical layer deposition and an acceleration of
capacity expansion at ams' Singapore sites to prepare for expected
customer volume needs into 2018.

Given these very positive forecast and pipeline developments ams'
mid-term revenue growth target is currently under upward revision.

For the second quarter 2017, ams is seeing a positive development of
its business apart from the Heptagon business which ams expects to
show the anticipated more flattish revenue development
quarter-on-quarter. Based on available information and a current
USD/EUR exchange rate of 1.08, ams expect second quarter revenues of
EUR 174-181 million, a sequential growth of 17-21%. This expected
quarter-on-quarter growth echoes a stronger business momentum in both
ams' consumer and non-consumer businesses driven by an improved
backlog and order intake as all end markets are expected to
contribute positively.

The adjusted operating margin for the second quarter (excluding
acquisition-based and share-based compensation costs) is expected to
be around break-even reflecting the current underutilization of
production capacity in ams' Heptagon business. This anticipated
underutilization in the second quarter is due to the installation of
additional production capacity for expected high volume ramp-ups in
the second half. The related adjusted EBIT margin excluding the
Heptagon business is expected to be above 18% of revenues.

The quarterly report for the first quarter 2017 including additional
financial information is available on the company website at
www.ams.com/eng/Investor/Financial-Reports . Concurrently, ams has
published the Annual Report 2016 which is also available on the
company website at www.ams.com/eng/Investor/Financial-Reports .

Further inquiry note:
Moritz M. Gmeiner
Vice President Investor Relations
Tel: [phone]
Fax: [phone]
Email: [e-mail]

end of announcement euro adhoc
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issuer: ams AG
Tobelbader Strasse 30
A-8141 Premstaetten
phone: [phone]
FAX: [phone]
mail: [e-mail]
WWW: www.ams.com
sector: Technology
ISIN: AT0000A18XM4
indexes:
stockmarkets: official dealing: SIX Swiss Exchange
language: English