(Reuters) - Austria’s AMS (AMS.S), which supplies Apple (AAPL.O) and Samsung (005930.KS) with chips, may increase its mid-term revenue growth target as it expects significant ramp-ups in its consumer business in the second half of the year.
Analysts expect strong growth in 2017 for AMS, due to the launch of Apple’s iPhone 8 in September and these expectations have driven its shares more than 85 percent higher so far this year.
“AMS is seeing significantly increased customer forecasts and a higher revenue pipeline for 2017 and particularly 2018,” the company said in a statement on Monday.
It is increasing its capital expenditure to around 400 to 450 million euros in 2017 to take account of expected customer volume needs, it added.
AMS also said that it expects revenues of between 174 million euros and 181 million euros and an adjusted operating margin around break-even for the second quarter
The company’s first quarter revenue jumped to 149.3 million euros, above its previously forecast range of 141-148 million euros, boosted by solid demand from most of its end markets.
However, the company said it swung to a loss of 16.2 million euros in the first quarter, compared to a profit of 13.6 million euros a year ago.
Reporting by Anna Serafin; additional reporting by Alan Charlish; editing by Alexander Smith