Ams-OSRAM AG adjusts microLED strategy, plans impairment charge

ams OSRAM has announced a review of its microLED strategy following the unexpected cancellation of a key project. This revision results in a non-monetary depreciation charge estimated between 600 and 900 million euros. At the same time, the company is adjusting its medium-term structural revenue growth forecasts to between 6% and 8%, and anticipates an improvement in its cash flow profile.

The company expects that changes in the capitalization of R&D expenses and the reduction of subsidies will impact FY24 adjusted EBIT by €30 million to €50 million. Despite the impact of these adjustments, ams OSRAM is not changing its forecasts for revenue (800 to 900 million euros) and adjusted EBIT margin (4% to 7%) for the first quarter of 2024.

The board notes that the company's underlying performance remains in line with expectations, with significant growth expected in automotive semiconductor applications, mobile light sensors, and other areas. such as industrial and medical.