AT&S Releases Outlook for the Financial Year 2016/17
October 19, 2016 | AT&SEstimated reading time: 1 minute
The current business development of AT&S is characterized by good capacity utilization and demand in all relevant customer segments. Existing production capacities are limited though, and combined with current lower prices and the product mix, this will have an influence on the revenue development for the financial year 2016/17.
Moreover, based on relevant customer demand, AT&S is preparing the next technology generation in the core business for the segment Mobile Devices & Substrates, earlier than originally planned. The start of serial production for this technology is scheduled for the beginning of the second half of calendar year 2017. The required technological adjustments of the production equipment will lead to temporarily reduced capacities at the Shanghai plant and decrease the revenue potential for the financial year 2016/17. Based on this technology, AT&S is positioning itself as a high-end supplier in continuously growing customer segments.
The flatter ramp of the IC substrates plant in Chongqing, China, will additionally negatively influence the original guidance for revenue and profitability for the financial year 2016/17.
The Management Board now assumes revenue growth of 4-6% for the financial year 2016/17 (original guidance: 10-12%) and an EBITDA margin of 15-16% (original guidance: 18-20%). AT&S expects – unchanged and as originally forecast – higher depreciation for the financial year 2016/17 of an additional EUR 40 million from the Chongqing project compared to the financial year 2015/16.
AT&S will strictly pursue the cost reduction and optimization programs already introduced. The Management Board is convinced that the appropriate technology investments will secure the long-term profitable growth course – despite the temporary challenges.
Suggested Items
Keynote Preview: Reshaping our Engagement With the World
03/28/2024 | Shawn DuBravac, IPCThe widespread integration of AI across various sectors is broadening its impact, from revolutionizing healthcare with Smart solutions to transforming homes into intuitive spaces, highlighting its crucial role in boosting efficiency and addressing complex challenges. In healthcare, we're witnessing a trend toward personalized care with AI-driven devices like intelligent pillows to mitigate snoring, sophisticated sleep monitors, and innovative patient monitoring systems.
Indium Corporation to Present, Exhibit at EPP InnovationsFORUM
03/28/2024 | Indium CorporationIndium Corporation is set to present and exhibit at EPP InnovationsFORUM, one of Europe’s premier single-day electronics manufacturing forums, on April 17 in Leinfelden-Echterdingen, Germany. Topic areas for 2024 will include AI, automation, sustainability, and quality.
Accenture Invests in Sanctuary AI to Bring AI-Powered, Humanoid Robotics to Work Alongside Humans
03/27/2024 | BUSINESS WIREAccenture has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI and can perform a wide variety of work tasks quickly, safely and effectively.
AT&S Well Prepared to Benefit from AI Boom
03/26/2024 | AT&SThe rapid progress in the development of artificial intelligence promises to revolutionize all areas of daily life in the coming years. In order to operate such AI systems, an enormous amount of computing power is required, which is provided by a vast network of data centres.
The IMAPS Show: A Conversation with John Andresakis
03/26/2024 | Marcy LaRont, PCB007 MagazineOn the last day of the IMAPS Device Packaging Conference, Marcy LaRont sat down with industry veteran John Andresakis of Quantic Ohmega, who attended the conference this week. Not his first time at this event, he talked about the conference, advanced technology, and trying to get the word out about the advanced packaging substrates solution Quantic is offering.