The following is a summary of the Ams-OSRAM AG (AMSSY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Ams-OSRAM reported Q4 group revenues of EUR908 million, showing a slight quarter-on-quarter increase.
Revenue declined 10% year-over-year after adjusting for divestments in the Lamps & Systems segment.
Adjusted EBIT margin stood at 6.9%, slightly above the midpoint of the guided range.
The Semiconductor segment posted revenues of EUR629 million, down by 3% from Q3.
The company reported a Q4 adjusted gross profit of €260 million, with a gross margin of 28.7%.
2023 revenue was lesser compared to 2022 primarily due to portfolio cleanup and lost consumer program sockets.
Operating cash flow in 2023 was stronger due to higher factoring.
Business Progress:
Strong design win momentum was experienced in 2023, particularly in the automotive sector, with total design win volume of over EUR5 billion across all products and applications.
New developments in CT scan photon counting sensors, light emitting diodes for home cinema applications, and micro-LED technology have begun delivering revenues.
Despite expected challenges, the company anticipates positive contributions in 2024 driven by design win prospects and continued execution of the 'Re-establish the Base' program.
They are also expanding presence in China's automotive semi-sector and achieving innovations in photon counting sensors and high-performance blue-emitting lasers.
The company plans divestments throughout 2024 and is engaged in ongoing negotiations.
Ams-OSRAM has finalized the first phase of its industry-first 8-inch Kulim manufacturing facility.
The company targets achieving revenues of €3.6 billion to €4.1 billion in '26 with a 15% adjusted EBIT and anticipates positive free cash flow in '24.
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