AMS AG ADR press release (OTCPK:AMSSY): Q2 Non-GAAP EPS of €0.00. Revenue of €819M (-3.8% Y/Y). Operating cash flow, which includes net interest paid, came in again at €55 million in the second quarter. Q3 outlook: The group expects third quarter revenues to increase driven by the ramp of new products and seasonality effects despite persistent weakness in industrial & medical businesses and land in a range of €830 – €930 million. The adj. EBITDA is expected to increase to 17% – 20% driven by revenue fall through and further contributions from the ‘Re-establish-the-Base’ program. The EUR/USD exchange rate is assumed to be 1.10. Comments on second half of 2024: In case certain capital grants expected in 2024 shift out to 2025, the CAPEX for FY2024 would be around €500 to €550 million (including capitalized R&D and rolled-over accounts payable related to PPE from 2023), instead of the previously expected range below €450 million. The company expects free cash flow to improve significantly in the second half of 2024 due to lower CAPEX and higher profitability. It continues to target a positive free cash flow before net interest paid for the full year 2024.
