AMS Osram - comment

AMS Osram released its Q3 results in line with previous guidance.  Quick observations include weaker guidance for Q4 2024 and Q1 2025, with the Company expecting growth in the semiconductor sector to materialise later in FY25.  In Q3/24, the Company received €250m in prepayments for the development & production of new products and NRE (non-recurring engineering costs) for developing LED technologies from various customers. The prepayment is for deliveries starting in 2026 with the payment for NRE’s may or may not lead to future products (but the payment is non-refundable). 

The company is holding a call at 9 am, and we will update our model afterwards.