SOITEC REPORTS FY’24 FIRST QUARTER REVENUE
SOITEC REPORTS FY’24 FIRST QUARTER
REVENUE
- Q1’24 revenue
was at €157m, down 23% on a reported basis
and down 24% at constant exchange rates and perimeter versus
Q1’23
-
Automotive &
Industrial revenue continued to deliver sharp growth whilst Smart
devices maintained double digit
growth
- As anticipated, Mobile
communications revenue were affected by the ongoing inventory
correction across the smartphone market supply
chain
- FY’24 guidance confirmed,
with annual revenue expected to be stable year on year
at constant exchange rates and perimeter,
including H1’24 to
decline by around
15%, and
EBITDA1
margin2 expected to
remain at around 36%
Bernin (Grenoble), France,
July 25th, 2023 – Soitec
(Euronext Paris), a world leader in the design and manufacture of
innovative semiconductor materials, today announces consolidated
revenue of 157 million Euros for the first quarter of FY’24 (ended
June 30th, 2023), down 23% on a reported basis compared with 203
million Euros achieved in the first quarter of FY’23.
Pierre Barnabé, Soitec’s CEO,
commented: “As expected, in the first fiscal quarter,
we faced a global smartphone market slowdown, combined with
significant customer inventories absorption. Q1’24 marks the
bottom, and we are anticipating a strong H2’24
recovery.
In Mobile Communications, we continue to
benefit from the growing penetration of 5G handsets and the growth
of RF-SOI content into smartphones. Additionally, we are excited
with the increasing adoption of FD-SOI and POI in the wireless
market.
Meanwhile, in the Automotive &
Industrial markets, our Power-SOI and FD-SOI product lines continue
to perform very well, driven by the increasing demand for
digitalization and electrification.
Our Smart devices revenue also shows a
positive trend, thanks to the increased adoption of our product
portfolio, for low power MCUs, edge AI, etc.
We remain confident that
FY’24 will show continuous
quarter on quarter growth, and
maintain both our
revenue and EBITDA margin
guidance for
FY’24.”
First quarter FY’24 consolidated revenue
(unaudited)
|
Q1’23 |
Q1’24 |
Q1’24/Q1’23 |
|
|
|
|
|
(Euros
millions) |
|
|
change reported |
chg. at const. exch. rates & perimeter |
|
|
|
|
|
Mobile
communications |
152 |
89 |
-42% |
-43% |
Automotive
& Industrial |
23 |
37 |
+60% |
+57% |
Smart
devices |
28 |
31 |
+12% |
+10% |
|
|
|
|
|
Total
revenue |
203 |
157 |
-23% |
-24% |
Soitec revenue was at 157 million Euros in the
first quarter of FY’24, a 24% decrease at constant exchange rates
and perimeter3 compared to the first quarter of FY’23. This is
reflecting contrasted performances between our three end markets.
Decline in Mobile communications revenue has partially been
compensated by the sustained growth of Automotive & Industrial
and Smart devices revenue.
Mobile communications
In the first quarter of FY’24, Mobile
communications revenue reached 89 million Euros, a 43% decline
at constant exchange rates compared to the first quarter of FY’23.
This temporary drop in revenue, which is essentially reflecting a
decrease in volumes, is due to a well-anticipated RF-SOI
wafers inventory absorption by Soitec customers in the
context of weaker smartphone sales across the world. As indicated
by Soitec early April 2023, and confirmed at its Capital Markets
Day in June 2023, this inventory correction is expected to last
another quarter before growth in RF-SOI wafer sales resumes. RF-SOI
will continue to be supported by a greater penetration of high-end
smartphones with further adoption of 5G and Wi-Fi 6/6E/7 leading to
a higher content of Soitec substrates per smartphone, but also by
the deployment of 5G infrastructure.
Sales of FD-SOI wafers dedicated
to front end modules continued to benefit from a positive
momentum.
Sales of POI (Piezoelectric-on-Insulator)
wafers dedicated to RF filters for 5G smartphones become a
solid growth driver compared to FY’23. In addition, Soitec
continues working with several customers on qualifying different
design architectures.
Automotive & Industrial
Automotive & Industrial revenue reached 37
million Euros in the first quarter of FY’24, a 57% growth at
constant exchange rates compared to the first quarter of FY’23.
Growth essentially reflects a strong increase in volumes and, to a
lesser extent, a positive price / mix effect.
Sales to the automotive industry continue to be
driven by the rise in semiconductor content embedded in the latest
generations of vehicles, Soitec products addressing the rising
demand for multimedia and infotainment, functional safety,
autonomous and assisted driving, as well as engine
electrification.
Sales of Power-SOI
wafers significantly increased compared to the
first quarter of FY’23.
Sales of FD-SOI wafers also
reached a higher level than in the first quarter of FY’23.
In addition, Automotive & Industrial sales
continue to benefit from Soitec’s
SmartSiCTM technology. Production
ramp-up is expected in FY’25.
Smart devices
Smart devices revenue reached 31 million Euros in
the first quarter of FY’24, a 10% increase at constant exchange
rates compared to the first quarter of FY’23, reflecting mainly
higher volumes.
Sales of products dedicated to Smart devices
continue to be driven by more complex sensors, higher connectivity
functionalities and embedded intelligence, leading to more powerful
and efficient chips for Edge Artificial Intelligence, Image
Sensors, and Data Centers that support the Cloud
Infrastructure.
Sales of FD-SOI wafers were much
higher than in the first quarter of FY’23, supported by structural
demand for Edge Computing devices across consumer and industrial
sectors.
Sales of Photonics-SOI wafers,
providing high speed connectivity solutions for Artificial
Intelligence in the Cloud, and sales of Imager-SOI
wafers for 3D imaging applications, were both lower than
in the first quarter of FY’23.
FY’24 outlook
Soitec confirms expecting FY’24 total
revenue to be stable at constant exchange rates and
perimeter as compared to FY’23 with H1’24 total revenue to decline
by around -15% year-on-year. The strong inventory correction which
was anticipated for products dedicated to smartphones
radiofrequency applications did materialize in Q1’24 and should
last another quarter before a strong acceleration expected in the
second part of FY’24. On the other hand, strong demand continues to
be expected throughout FY’24 for both Automotive & Industrial
and Smart devices.
Soitec also confirms FY’24
EBITDA1
margin2 to remain around 36%.
# # #
Analysts conference call to be held in
English on Wednesday 26th July 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/20230726_1
# # #
Agenda
Q2’24 revenue and H1’24 results are due to be
published together on November 15th, 2023, after market close.
# # #
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 2022-2023 Universal
Registration Document (which notably includes the 2022-2023 Annual
Financial Report) which was filed on June 14, 2023 with the French
stock market authority (Autorité des Marchés Financiers, or AMF)
under number D.23-0482. The French version of the 2022-2023
Universal Registration Document, together with English courtesy
translation for information purposes, 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 (Risk factors and controls mechanism) of
the Company’s 2022-2023 Universal Registration Document.
This document contains summary information and
should be read in conjunction with the 2022-2023 Universal
Registration Document.
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 (Risk factors and
controls mechanism) of the 2022-2023 Universal Registration
Document may have an impact on these forward-looking statements.In
particular, the future consequences of geopolitical conflicts,
notably 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 (Risk factors and controls
mechanism) of the 2022-2023 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 Leaders), a world leader in
innovative semiconductor materials, has been developing
cutting-edge products delivering both technological performance and
energy efficiency for over 30 years. From its global headquarters
in France, Soitec is expanding internationally with its unique
solutions, and generated sales of 1.1 billion Euros in fiscal year
2022-2023. Soitec occupies a key position in the semiconductor
value chain, serving three main strategic markets: mobile
communications, automotive and industrial, and smart devices. The
company relies on the talent and diversity of its 2,100 employees,
representing 50 different nationalities, working at its sites in
Europe, the United States and Asia. Soitec has registered over
4,000 patents.
Soitec, SmartSiC™ and Smart Cut™ are registered
trademarks of Soitec.
For more information: https://www.soitec.com/en/
and follow us on Twitter: @Soitec_Official
# # #
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 (Q1’24
unaudited)
Quarterly
revenue |
Q1’22 |
Q1’23 |
Q2’22 |
Q2’23 |
Q3’22 |
Q3’23 |
Q4’22 |
Q4’23 |
Q1’23 |
Q1’24 |
(Euros
million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile communications |
135 |
152 |
142 |
189 |
146 |
170 |
200 |
220 |
152 |
89 |
Automotive & Industrial |
16 |
23 |
17 |
34 |
19 |
37 |
22 |
47 |
23 |
37 |
Smart
devices |
29 |
28 |
33 |
45 |
43 |
67 |
60 |
77 |
28 |
31 |
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
180 |
203 |
193 |
268 |
208 |
274 |
282 |
344 |
203 |
157 |
Change in
quarterly revenue |
Q1’23 |
Q2’23 |
Q3’23 |
Q4’23 |
Q1’24 |
|
Reported change |
Organic change1 |
Reportedchange |
Organic change1 |
Reportedchange |
Organic change1 |
Reportedchange |
Organic change1 |
Reported change |
Organic change1 |
(vs. previous
year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile communications |
+13% |
+6% |
+33% |
+22% |
+17% |
+11% |
+10% |
+5% |
-42% |
-43% |
Automotive & Industrial |
+46% |
+37% |
+96% |
+80% |
+96% |
+85% |
+109% |
+99% |
+60% |
+57% |
Smart
devices |
-6% |
-11% |
+37% |
+28% |
+57% |
+50% |
+29% |
+25% |
+12% |
+10% |
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
+12% |
+6% |
+39% |
+28% |
+32% |
+26% |
+22% |
+16% |
-23% |
-24% |
1 At constant exchange rates and comparable scope
of consolidation:
- In 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.
- There was no scope effect in Q4’23,
nor in Q1’24.
# # #
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 Q1’24
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