The Austrian Semiconductor Manufacturer ams OSRAM Faces Significant Challenges After a Major Project in the microLED Technology Area Was Canceled. The Company Announced on Friday That This Will Lead to a Comprehensive Restructuring, Affecting About 500 Employees at Various Locations. In the Future, ams OSRAM Intends to Focus More on Applications in the Automotive Sector.

In the first quarter, the company recorded a 9 percent decrease in revenue to 847 million euros and slipped into the red regarding profits. The adjusted operating income (Ebit) fell by 13 percent to 44 million euros, while the Ebit margin dropped from 5.4 percent in the previous year to now 5.2 percent. At the bottom line, there was a loss of 35 million euros, after a profit of 6 million euros had been achieved in the previous year.

The cancellation of the microLED project at the end of February results in extraordinary expenses of 700 million euros, which increased the unadjusted loss to 710 million euros - in the previous year, this amounted to 134 million euros. Despite the negative developments, ams OSRAM largely met analyst expectations.

For the ongoing second quarter, ams OSRAM expects revenue between 770 and 870 million euros and an adjusted EBITDA margin of 14 to 17 percent. For the second half of the year, the company anticipates an improvement in business prospects. In addition, the adjustment of the strategy in the microLED sector is expected to lead to a significant improvement in free cash flow and adjusted EBIT by up to 100 million euros each by 2025.

The listing of the ams share on the Swiss stock exchange SIX showed a slight recovery, temporarily up 0.63 percent at 1.04 francs.