SOITEC REPORTS FY’23 FOURTH QUARTER REVENUE
SOITEC REPORTS FY’23 FOURTH QUARTER
REVENUE
- Q4’23 revenue reached the
record level of €344m, up 22% on a reported basis and up 16% at
constant exchange rates and perimeter versus Q4’22
- FY’23 annual revenue reached
the strong level of €1,089m, up 26% on a reported basis compared
with FY’22, or up 19% at constant exchange rates and perimeter, in
line with guidance
- FY’23
EBITDA1
margin2 expected around
36% in line with the guidance
- FY’24 annual revenue
expected to be stable at constant exchange rates and perimeter
compared with FY’23 and FY’24 EBITDA1
margin2 expected to
remain at around 36%
- Soitec is managing its
business to reach a revenue target of around
$2.1 billion in FY’26 with
an EBITDA1
margin2 target of around
40% (at a 1.10 Euro/ US Dollar exchange rate)
Bernin (Grenoble), France, April
26th, 2023 – Soitec
(Euronext Paris), a world leader in designing and manufacturing
innovative semiconductor materials, today announced consolidated
revenue of 344 million Euros for the fourth quarter of FY’23 (ended
March 31st, 2023), up 22% on a reported basis compared with 282
million Euros achieved in the fourth quarter of FY’22. This results
from the combination of a 16% growth at constant exchange rates and
perimeter3 and a positive currency impact of 6% compared with the
fourth quarter of FY’22.
FY’23 annual revenue reached 1,089 million
Euros, up 26% on a reported basis against 863 million Euros
achieved in FY’22. At constant exchange rates and perimeter4, FY’23
revenue grew by 19% compared with FY’22, in line with the guidance
of “around 20%” announced one year ago.
Soitec also announced today that Chief Operating
Officer Bernard Aspar will leave the company in August to take up
new challenges, after 17 years at Soitec. Bernard Aspar joined
Soitec upon its 2006 acquisition of Tracit Technologies, the
company he founded as a spin-off from CEA-Leti, and subsequently
helped to lead the development and deployment of Smart CutTM
technology.
Pierre Barnabé, Soitec’s CEO,
commented:
“We delivered another record quarter and
finished the year with an annual organic growth of 19%, in line
with our guidance. In the context of a global smartphone market
slowdown, we continued to benefit from the penetration of high-end
5G handsets and the growth of Soitec content within smartphones.
The automotive market, where we leverage increasing demand for
digitalization and electrification, remained robust. Sustained
growth across our product portfolio developed for Smart devices
completed this strong performance.”
“Going forward, we will face inventory
clearing in the smartphone market supply chain and
we expect it to last two quarters, resulting in
lower performance in the mobile communications business. For the
year as a whole, we expect to offset this by taking advantage of
continuous strong demand for both Automotive & Industrial and
Smart devices. Overall, after a stable revenue anticipated in the
fiscal year 2024 on an organic basis, we expect strong growth
momentum to resume as we manage our business to reach a target
revenue of around $2.1 billion in fiscal year 2026.”
“I would also like to
take this opportunity, on behalf of
Soitec, to thank Bernard for the
valuable support he has provided during the leadership transition
of the past 15 months, and for his extensive
contribution to the company’s
success over the
years.”
Fourth quarter FY’23 consolidated
revenue (unaudited)
|
Q4’22 |
Q4’23 |
Q4’23/Q4’22 |
|
|
|
|
|
(Euros
millions) |
|
|
change reported |
chg. at const. exch. rates & perimeter |
|
|
|
|
|
Mobile
communications |
200 |
220 |
+10% |
+5% |
Automotive
& Industrial |
22 |
47 |
+109% |
+99% |
Smart
devices |
60 |
77 |
+29% |
+25% |
|
|
|
|
|
Total
revenue |
282 |
344 |
+22% |
+16% |
Soitec achieved its highest quarter ever in the
fourth quarter of FY’23, with total revenue reaching 344 million
Euros. This represents a 16% growth at constant exchange rates and
perimeter3 compared to the fourth quarter of FY’22, reflecting a
continuously strong momentum in Automotive & Industrial, a
sustained growth in Smart devices and a slower one in Mobile
communications.
Mobile communications
Mobile communications revenue continues to be
supported by ongoing growth of Soitec content within smartphones,
further adoption of 5G smartphones and Wi-Fi 6, as well as by the
deployment of 5G infrastructure.
In the fourth quarter of FY’23, Mobile
communications revenue reached 220 million Euros, a 5% growth
at constant exchange rates compared to the fourth quarter of FY’22,
mainly reflecting an increase in volumes.
In the context of weaker smartphone sales across
the world, RF-SOI wafer sales continue to be
supported by a solid penetration of high-end smartphones, with a
higher content of Soitec substrates within 5G high-end smartphones
as compared to 4G, as well as by the strength of Soitec’s customer
contracts.
Sales of FD-SOI wafers
dedicated to front end modules continued to benefit from a positive
momentum.
As anticipated, the adoption phase of
POI (Piezoelectric-on-Insulator) wafers dedicated
to RF filters for 5G smartphones is still ongoing, and Soitec
continues to work with several customers on qualifying different
design architectures.
In this regard, Soitec today announced a
partnership with the foundry SAWNICS to provide a process design
kit (PDK) based on Soitec's POI substrates to accelerate the design
of high-performance RF filters for 5G smartphones.
Automotive & Industrial
Demand from the automotive industry continues a
steady increase, driven by the rise in semiconductor content
embedded in the latest generations of vehicles. Soitec continues to
address rising demand for multimedia and infotainment, functional
safety, autonomous and assisted driving, as well as increasing
electrification.
Automotive & Industrial revenue reached 47
million Euros in the fourth quarter of FY’23, a 99% growth at
constant exchange rates compared to the fourth quarter of FY’22.
Growth essentially reflects a sharp increase in volumes and, to a
lesser extent, a positive price effect.
Sales of Power-SOI
wafers continued to sustain a solid level of
growth.
Sales of FD-SOI wafers
dedicated to automotive applications had another strong quarter
representing a significant increase compared to the fourth quarter
of FY’22.
Automotive & Industrial revenue also
benefited from first sales generated by Soitec’s
SmartSiC offering.
Smart devices
The demand from the Smart devices market is
driven by the need for more complex sensors, higher connectivity
functionalities and embedded intelligence, leading to more powerful
and efficient chips for Edge Artificial Intelligence, Data Centers
and Cloud Computing.
Smart devices revenue reached 77 million Euros
in the fourth quarter of FY’23, a 25% increase at constant exchange
rates compared to the fourth quarter of FY’22. This performance
mostly reflects higher volumes and, to a lesser extent, a positive
mix effect.
Sales of FD-SOI wafers
benefitted from another strong quarter, compared to the fourth
quarter of FY’22, confirming structural demand for Edge Computing
devices across consumer and industrial sectors.
Sales of Imager-SOI wafers for
3D imaging applications remained at a solid level.
Sales of Photonics-SOI wafers
to provide high speed connectivity solutions for Artificial
Intelligence in the Cloud showed strong growth over the fourth
quarter of FY22. These products are also suitable for Co-Packaged
Optics architectures.
FY’23 annual consolidated revenue
(unaudited)
|
FY’22 |
FY’23 |
FY’23/FY’22 |
|
|
|
|
|
(Euros
millions) |
|
|
change reported |
chg. at const. exch. rates & perimeter |
|
|
|
|
|
Mobile
communications |
624 |
731 |
+17% |
+10% |
Automotive
& Industrial |
74 |
141 |
+89% |
+77% |
Smart
devices |
165 |
217 |
+32% |
+26% |
|
|
|
|
|
Total
revenue |
863 |
1,089 |
+26% |
+19% |
Overall, FY’23 consolidated annual revenue
reached an all-time record of 1,089 million Euros, up 26% on a
reported basis compared to 863 million Euros in FY’22. This
reflects a 19% growth at constant exchange rates and perimeter4
compared with FY’22, combined with a positive currency impact of
7%.
On a full-year basis, Mobile communications
revenue was up 10% at constant exchange rates and perimeter4
compared with FY’22, representing 67% of total revenue in FY’23
against 72% in FY’22. Automotive & Industrial revenue was up
77% at constant exchange rates and perimeter4 compared with FY’22,
increasing from 9% to 13% of total revenue. Smart devices revenue
was up 26% at constant exchange rates and perimeter4 compared with
FY’22, raising from 19% to 20% of total revenue.
Outlook
FY’23
Soitec continues to expect FY’23 EBITDA1 margin2
to reach around 36%.
FY’24
Regarding FY’24, as indicated early April,
Soitec anticipates total revenue to be stable at constant exchange
rates and perimeter as compared to FY’23 and EBITDA1 margin2 to
remain around 36%.
A weaker smartphone market with a strong
inventory correction is expected to weigh on Mobile communications
revenue, especially during the first half of FY’24, while further
strong demand is anticipated for both Automotive & Industrial
and Smart Devices. H1’24 total revenue is therefore expected to
decline at constant exchange rates and perimeter by around -15%
year-on-year while a strong acceleration is expected in H2’24.
FY’26 financial model
Soitec is anticipating significant growth in
each of its three end markets and new products and is managing its
business to reach in FY’26:
- a targeted revenue
of around $2.1 billion, as compared to a revenue of $2.3 billion
communicated in June 2022,
- an EBITDA1 margin2
target of around 40% (at a 1.10 Euro/ US Dollar exchange
rate).
These targets are sustained by Soitec’s strong
portfolio with both further growth in existing products (FD-SOI,
RF-SOI, Power-SOI and Photonics-SOI) and new products (especially
SiC, POI and GaN) coming in the three end markets: Mobile
communications, Automotive & Industrial and Smart devices.
Soitec will provide more information during its Capital Market Day
on June 8th, 2023.
Additional information
ESG
Climate: Soitec is part of the CAC SBT 1.5
index, launched in January 2023 by Euronext.
Water: Soitec joined the Water Observatory
created in March 2023 by the Communauté des Communes du
Grésivaudan, to plan and implement further coordinated actions to
be taken by water users and providers, to mitigate environmental
impacts.
Ineligibility for the PEA-PME mechanism
Soitec informs its shareholders of its
ineligibility for the PEA-PME mechanism, in accordance with the
provisions of Articles L. 221-32-2 and D. 221-113-5 of the French
Monetary and Financial Code, which specify the conditions for
assessing eligibility criteria5. As a result, Soitec’s shares can
no longer be included in PEA-PME accounts.
# # #
Analysts conference call to be held in
English on Thursday 27th April at
8:00 am CET.
To listen this conference call, the audiocast is
available live and in replay at the following
address: https://channel.royalcast.com/soitec/#!/soitec/20230427_1
# # #
Agenda
FY’23 annual results are due to be published on
June 7th, 2023, after market close.
Soitec will be hosting a Capital Markets Day in
Paris on June 8th,
2023.
# # #
Disclaimer
This document is provided by Soitec (the
“Company”) for information purposes only.
The Company’s business operations and financial
position are described in the Company’s 2021-2022 Universal
Registration Document (which notably includes the 2021-2022 Annual
Financial Report) which was filed on June 20, 2022 with the French
stock market authority (Autorité des Marchés Financiers, or AMF)
under number D.22-0523, as well as in the Company’s 2022-2023
half-year report released on November 23, 2022. The French versions
of the 2021-2022 Universal Registration Document and of the
2022-2023 half-year report, together with English courtesy
translations for information purposes of both documents, are
available for consultation on the Company’s website
(www.soitec.com), in the section Company - Investors - Financial
Reports.
Your attention is drawn to the risk factors
described in Chapter 2.1 of the Company’s 2021-2022 Universal
Registration Document.
This document contains summary information and
should be read in conjunction with the 2021-2022 Universal
Registration Document and the 2022-2023 half-year report.
This document contains certain forward-looking
statements. These forward-looking statements relate to the
Company’s future prospects, developments and strategy and are based
on analyses of earnings forecasts and estimates of amounts not yet
determinable. By their nature, forward-looking statements are
subject to a variety of risks and uncertainties as they relate to
future events and are dependent on circumstances that may or may
not materialize in the future. Forward-looking statements are not a
guarantee of the Company’s future performance. The occurrence of
any of the risks described in Chapter 2.1 of the Universal
Registration Document may have an impact on these forward-looking
statements. In addition, the future consequences of geopolitical
conflicts, in particular the Ukraine / Russia situation, as well as
rising inflation, may result in greater impacts than currently
anticipated in these forward-looking statements.
The Company’s actual financial position, results
and cash flows, as well as the trends in the sector in which the
Company operates may differ materially from those contained in this
document. Furthermore, even if the Company’s financial position,
results, cash-flows and the developments in the sector in which the
Company operates were to conform to the forward-looking statements
contained in this document, such elements cannot be construed as a
reliable indication of the Company’s future results or
developments.
The Company does not undertake any obligation to
update or make any correction to any forward-looking statement in
order to reflect an event or circumstance that may occur after the
date of this document. In addition, the occurrence of any of the
risks described in Chapter 2.1 of the Universal Registration
Document may have an impact on these forward-looking
statements.
This document does not constitute or form part
of an offer or a solicitation to purchase, subscribe for, or sell
the Company’s securities in any country whatsoever. This document,
or any part thereof, shall not form the basis of, or be relied upon
in connection with, any contract, commitment or investment
decision.
Notably, this document does not constitute an
offer or solicitation to purchase, subscribe for or to sell
securities in the United States. Securities may not be offered or
sold in the United States absent registration or an exemption from
the registration under the U.S. Securities Act of 1933, as amended
(the “Securities Act”). The Company’s shares have not been and will
not be registered under the Securities Act. Neither the Company nor
any other person intends to conduct a public offering of the
Company’s securities in the United States.
# # #
About Soitec
Soitec (Euronext, Tech 40 Paris) is a world
leader in designing and manufacturing innovative semiconductor
materials. The company uses its unique technologies to serve the
electronics markets. With more than 3,700 patents worldwide,
Soitec’s strategy is based on disruptive innovation to meet its
customers’ needs for high performance, energy efficiency and cost
competitiveness. Soitec has manufacturing facilities, R&D
centers and offices in Europe, the United States and Asia. Fully
committed to sustainable development, Soitec adopted in 2021 its
corporate purpose to reflect its engagements: “We are the
innovative soil from which smart and energy efficient electronics
grow into amazing and sustainable life experiences.”
Soitec, SmartSiC™ and SmartCut™ are registered
trademarks of Soitec.
# # #
For more information, please
visit www.soitec.com and follow
us on Twitter: @Soitec_EN
Investor
Relations: investors@soitec.com
|
Media
contacts: Isabelle Laurent+33 6 42 37 54
17
isabelle.laurent@oprgfinancial.fr Fabrice Baron+33 6 14 08
29
81 fabrice.baron@oprgfinancial.fr |
# # #
Soitec is a French joint-stock corporation with
a Board of Directors (Société Anonyme à Conseil d’administration)
with a share capital of €71,178,834 having its registered office
located at Parc Technologique des Fontaines - Chemin des Franques -
38190 Bernin (France), and registered with the Grenoble Trade and
Companies Register under number 384 711 909.
# # #
Appendix
Consolidated revenue (Q3’23 and Q4’23
unaudited)
Revenue |
Q1’22 |
Q2’22 |
Q3’22 |
Q4’22 |
Q1’23 |
Q2’23 |
Q3’23 |
Q4’23 |
|
FY’22 |
FY’23 |
(Euros million) |
|
|
|
|
|
|
|
|
|
|
|
Mobile communications |
135 |
142 |
146 |
200 |
152 |
189 |
170 |
220 |
|
624 |
731 |
Automotive & Industrial |
16 |
17 |
19 |
22 |
23 |
34 |
37 |
47 |
|
74 |
141 |
Smart devices |
29 |
33 |
43 |
60 |
28 |
45 |
67 |
77 |
|
165 |
217 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
180 |
193 |
208 |
282 |
203 |
268 |
274 |
344 |
|
863 |
1,089 |
Change in
revenue |
Q1’23/Q1’22 |
Q2’23/Q2’22 |
Q3’23/Q3’22 |
Q4’23/Q4’22 |
|
FY’23/FY’22 |
(vs. previous
year) |
change reported |
chg. at const. exch. rates and
perimeter1 |
change reported |
chg. at const. exch. rates and
perimeter1 |
change reported |
chg. at const. exch. rates and
perimeter1 |
change reported |
chg. at const. exch. rates and
perimeter1 |
|
change reported |
chg. at const. exch. rates and
perimeter1 |
Mobile
communications |
+13% |
+6% |
+33% |
+22% |
+17% |
+11% |
+10% |
+5% |
|
+17% |
+10% |
Automotive &
Industrial |
+46% |
+37% |
+96% |
+80% |
+96% |
+85% |
+109% |
+99% |
|
+89% |
+77% |
Smart devices |
-6% |
-11% |
+37% |
+28% |
+57% |
+50% |
+29% |
+25% |
|
+32% |
+26% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue |
+12% |
+6% |
+39% |
+28% |
+32% |
+26% |
+22% |
+16% |
|
+26% |
+19% |
1 At constant exchange rates and comparable scope of
consolidation:
- There was no scope effect in Q1’22,
Q2’22, Q3’22, nor in Q4’23.
In Q4’22, Q1’23, Q2’23 and Q3’23 the scope effect
relating to the acquisition of NOVASiC, finalized on
December 29, 2021, had no material impact on Soitec's
revenue.
# # #
1 The EBITDA represents operating income (EBIT) before
depreciation, amortization, impairment of non-current assets,
non-cash items relating to share-based payments, provisions for
impairment of current assets and for contingencies and expenses,
and disposals gains and losses. This alternative indicator of
performance is a non-IFRS quantitative measure used to measure the
company’s ability to generate cash from its operating activities.
EBITDA is not defined by an IFRS standard and must not be
considered an alternative to any other financial indicator
2 EBITDA margin = EBITDA from continuing operations /
Revenue
3 There was no scope effect in Q4’234 The scope effect related
to the acquisition of NOVASiC, the closing of which took place on
December 29, 2021, had no material impact on Soitec’s revenue.
5 Companies whose securities are admitted to
trading on a regulated market are eligible for the PEA-PME
mechanism, if (i) on the one hand, their market capitalization is
less than 1 billion euros or has been at the end of at least one of
the four fiscal years preceding the period taken into account to
assess the eligibility of the securities, and (ii) on the other
hand, that have less than 5,000 employees, their annual revenue is
less than 1.5 billion euros or the balance sheet total is less than
2 billion euros. These thresholds are assessed on the basis of the
consolidated accounts of the issuing company whose securities are
concerned and, when applicable, those of its subsidiaries.
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