VIENNA (Reuters) - Sensor specialist AMS (AMS.S), which just closed the takeover of OSRAM (OSRn.DE), expects third-quarter revenue to grow about 20% versus the second quarter as it sees strong demand from smartphone makers despite the pandemic.
AMS, which generates a large chunk of revenue with sensors for Apple Inc’s (AAPL.O) iPhones, expects revenue to reach $530 million to $570 million in the July-September period after $460.3 million (356.27 million pounds) in the second quarter.
It forecasts a third-quarter EBIT margin of 21% to 24% after 20% in the previous period.
AMS bases its guidance on strong demand for sensors for 5G smartphones as more people work from home and companies scramble to add more bandwidth amid the coronavirus pandemic.
Erste Group analysts said the second-quarter results were “solid” but they had expected more regarding the current quarter.
“The lower than expected guidance for the third quarter very likely stems from the delay of iPhone 12 manufacturing,” they said.
AMS’s previous third-quarter revenue was $645 million and the margin was at 28%.
Its shares were down 1.7% in early trade.
AMS, which closed the OSRAM takeover this month and now holds 71% of the German firm’s shares, said it was pushing integration and hoped to implement a domination and profit and loss transfer agreement by year-end.
The agreement will give the Austrians full say over OSRAM’s finances and cash flow.
AMS has said it plans to convene an extraordinary meeting of OSRAM’s shareholders to secure their approval shortly after the closing of the deal.
OSRAM’s forecast for the next few months looks gloomier than AMS’s as the auto industry, its main customer, still grapples with the global downturn.
It saw revenue fall 30% and posted a loss before interest, tax, depreciation and amortisation of 27 million euros ($31.7 million) for the April-June period on Wednesday.
However, OSRAM said that revenue had probably bottomed in the previous quarter and that it saw signs of a recovery in Asia and in North America.
Its shares were up 3.2%.
Reporting by Kirsti Knolle; Editing by Michelle Martin and Stephen Coates