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Shares of chip maker AMS jumped more than 20% Tuesday morning after the Austrian group released optimistic forecasts for the second quarter, due to growing demand for its 3D optical sensors on Android smartphones.
AMS is renowned for being the provider of Apple's face recognition technology, but has decided to no longer rely on Apple, after growing demand for the latest iPhone has forced the Swiss group to abandon its long-term forecasts and to suspend the payment of dividends in February.
The first quarter was marked by a surge in demand for Android smartphone launches incorporating AMS 3D technology. The group expects more Android smartphones equipped with 3D lighting solutions to be released in 2019.
First quarter revenues reached $ 390.2 million, down 20% from the fourth quarter of 2018, but are at the top of AMS 'forecast. Adjusted earnings before interest and taxes (EBIT) was $ 23.5 million.
The group expects a turnover of 390-430 million dollars in the second quarter and an operating margin of 6% in the first quarter to 10% in the second quarter.
In its earnings report, AMS said it expects a positive development of its business because "the consumer market seems to have stabilized and the demand for smartphones should show lower seasonal impacts".
"In addition, we have begun to multiply the design gains of the last quarters, which stimulates the expansion of commitments to our Android customers," he added.
The group said its other end markets "generally reflect a less favorable macroeconomic environment and a heightened level of prudence", but it expects these markets to continue to positively contribute to its growth.
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