Austria’s AMS, which supplies Apple and Samsung with chips, may increase its mid-term revenue growth target as it expects significant ramp-ups in its consumer business in the second half of the year. Analysts expect strong growth in 2017 for AMS, due to the launch of Apple’s iPhone 8 in September and these expectations have driven its shares more than 85 percent higher so far this year. “AMS is seeing significantly increased customer forecasts and a higher revenue pipeline for 2017 and particularly 2018,” the company said in a statement on Monday.
It is increasing its capital expenditure to around 400 to 450 million euros in 2017 to take account of expected customer volume needs, it added.
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AMS also said that it expects revenues of between 174 million euros and 181 million euros and an adjusted operating margin around break-even for the second quarter
The company’s first quarter revenue jumped to 149.3 million euros, above its previously forecast range of 141-148 million euros, boosted by solid demand from most of its end markets.
However, the company said it swung to a loss of 16.2 million euros in the first quarter, compared to a profit of 13.6 million euros a year ago.