Shares of chipmaker AMS jumped more than 20% Tuesday morning after the Austrian group posted an upbeat outlook for the second quarter, amid rising demand for its 3D optical sensors in Android smartphones.
AMS is known as the supplier of Apple’s facial recognition technology, but has looked to shed its reliance on Apple, after waning demand for the latest iPhone forced the Swiss-listed group to drop its long-term guidance and suspend dividend payments in February.
The first quarter saw a spike in demand for Android smartphone launches which include AMS 3D technology, and the group expects more Android smartphones equipped with its 3D illumination solutions to launch in 2019.
First-quarter revenues came in at $390.2 million, a 20% drop from the fourth quarter of 2018, but sitting at the upper end of AMS’ guidance. Adjusted earnings before interest and tax (EBIT) came in at $23.5 million.
The group expects revenues to reach $390-430 million in the second quarter and its operating margin to climb from 6% in the first quarter to 10% in the second.
In its earnings report, AMS said it expects a positive development of the business as the “consumer market appears to have stabilized and smartphone demand is expected to show lower seasonal impacts.”
“In addition, we have started to ramp design wins of the recent quarters which drive broadening engagements across our Android customer base,” it added.
The group said its other end markets “generally reflect a less favorable macro-economic environment and a higher level of cautiousness,” but it expects these markets will continue to contribute positively to its growth.