“Austrian chipmaker AMS said new orders for its sensors used in face recognition will lift growth in the second half of the year, sending its shares higher and brushing aside a widely expected second-quarter operating loss,” Kirsti Knolle reports for Reuters.
“AMS, which provides Apple with sensors used in the iPhone X face-recognition feature, said it expects ‘strong sequential revenue and profitability growth in the third quarter as high volume ramp-ups in consumer optical sensing have started,'” Knolle reports. “Swiss-listed AMS shares gained as much as 13 percent in early trade on Tuesday, topping the STOXX 600.”
“The company reported an operating loss of $48.6 million for the three months to end-June after a profit of $1.6 million the year before. Revenue came in at $252.8 million, slightly above the upper end of its April forecast. Back then, the Swiss-quoted firm had to lower its second-quarter outlook due to a ‘major customer’s’ delay in finalizing product plans, forcing it to wait and let capacity go unused,” Knolle reports. “Apple, which contributes an estimated 40 percent of AMS revenue, reportedly asked suppliers to make around 20 percent fewer components for the three new iPhones it plans to launch in 2018. To secure growth, AMS aims to diversify and establish an Android customer base.”
Read more in the full article here.
MacDailyNews Take: As we wrote on April 24, 2018:
As next-gen iPhones and iPad Pros get TrueDepth Camera systems, makers of components for Apple’s 3D sensing technology will be just fine.
Austria’s AMS AG, maker of Apple TrueDepth components, warns of short-term demand difficulties – April 24, 2018
Bernstein: AMS AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
This would have been excellent news if the company was Samsung instead of AMS. Oh Well !!