Apple supplier AMS AG discontinues FY18 targets
Ams updates its fourth quarter 2018 outlook due to recent demand changes from a major consumer customer. As a consequence of the changes in customer demand, ams now expects Q4 revenue of $480M-$520M, a sequential increase from the third quarter, based on current information. The adjusted operating margin for the fourth quarter is now expected to reach the low to mid-teens percentage range. Ams continues to expect strong cash flow generation and a meaningful free cash flow n the fourth quarter supporting its balance sheet structure. Ams sees increasing volatility in consumer customers' demand patterns and related business planning which is not expected to decline. As a consequence, Ams discontinues the previous reference to specific time periods for its mid-term targets for growth and profitability. Ams continues to target further revenue growth and strong profitability and confirms a full multi-year product and design pipeline. Ams therefore expects annual double-digit revenue growth for the coming years with an expansion of the adjusted operating margin towards Ams' target of 30%.