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Soitec announced its revenue for the second quarter of fiscal year 2024 and its results for the first half of fiscal year 2024 (ended on September 30th, 2023). The financial statements were approved by the Board of Directors during its meeting today.
- Q2’24 revenue reached €245m, down 7% at constant exchange rates and perimeter compared to Q2’23
- H1’24 revenue at €401m, down 15% both at constant exchange rates and perimeter and on a reported basis compared with H1’23 – in line with guidance
- H1’24 EBITDA margin stood at the robust level of 33% of revenue while the Company maintained significant investment in R&D
- Anticipated return to a slight year-on-year organic growth in H2’24, leading to a moderate downward revision of FY24 outlook: mid-single digit decline in FY’24 revenue expected at constant exchange rate and EBITDA1 margin2 anticipated around 35%
Pierre Barnabé, Soitec’s CEO, commented: “With a sequential growth of over 50% compared to the first quarter, our second-quarter revenue rebounded significantly, as we had anticipated. This was particularly the case in Mobile Communications as the inventory correction across the smartphone value chain eased. We continue to leverage strong demand in Automotive to deploy our SmartSiC™roadmap and we continue to progress actively with several customers.
Overall, our first half revenue is in line with our expectations. We have maintained strong profitability and a solid financial position, while continuing to invest in R&D and industrial capacity, as well as building inventories to prepare for H2’24.
Looking ahead, we maintain our growth perspectives for the second part of the fiscal year. We note however that the absorption of RF-SOI inventories at our customers level will last longer than anticipated. At the same time, we continue to expect sustained demand in Automotive & Industrial as well as in Smart Devices. Consequently, we now anticipate a full-fiscal-year revenue decline of around mid-single digit percentage, and an EBITDA margin of around 35%. After this transition year, we will resume our growth trajectory” added Pierre Barnabé.
FY’24 outlook
Soitec confirms growth recovery in the second half of FY’24. Against the backdrop of a weaker-than-expected smartphone market, the extent of the inventory correction at our customers level is greater than anticipated. We confirm strong traction for our Automotive & Industrial and Smart Devices divisions. We now anticipate our FY’24 revenue to slightly decline, by around a mid-single digit percentage, compared to FY’23, at constant exchange rates and perimeter.
As a result, FY’24 EBITDA margin is now expected to be around 35% of revenue. The Group will continue to implement cost control measures, while further investing significantly in R&D.
FY’24 Capital expenditure is expected to be around 290 million Euros in order to support growth beyond FY’24. Soitec’s growth outlook remain very strong: while the SOI content within end devices continues to increase, the ongoing penetration of the Group’s products across its three end markets and the successful deployment of its expansion into Compound Semiconductors with POI and SmartSiC™ becoming new significant growth drivers in the future.
Original – Soitec
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Soitec opened its new plant in Bernin, near Grenoble, in the presence of Thierry Breton, European Commissioner for the Internal Market and Roland Lescure, French Minister Delegate for Industry.
Soitec has developed its SmartSiC™ technology as a response to vehicle electrification challenges.
The technology, based on silicon carbide (SiC), sets a new standard with improved efficiency for energy conversion systems. Thanks to its reduced energy losses, better thermal management and improved power density, the material increases the range and performance of electric vehicles.
Through the application of SmartCut™ technology, each SiC substrate can be used 10 times.
As a result, SmartSiC™ enables electric vehicles to achieve ranges above 500 km, compared with an average 350 km for vehicles using silicon IGBT alternatives – while also reducing CO2 emissions during wafer manufacturing by 70% compared to monocrystalline SiC substrates.
Development of the technology began in 2020 in partnership with CEA-Leti and has received financial support from the French state, the region, local authorities and the European Union.
A new production facility in step with Soitec’s ambition
The new plant will have a 2,500 m2 footprint and a final production capacity of 500,000 SmartSiC™ wafers per year.
It will contribute to Soitec’s strategy of sustainable growth towards a threefold expansion of addressable markets by 2030, reinforcing the company’s leadership position in the strategic semiconductor materials market.
The new plant will lead to the creation of 400 direct jobs, while also reinforcing the attractiveness and dynamism of the “French Silicon Valley” ecosystem.
Pierre Barnabé, Chief Executive Officer of Soitec, stated: “More than ever we are ready to establish our SmartSiC™ technology as a new standard in semiconductor materials for coming generations of electric cars. This plant will enable us to meet growing demand for silicon carbide and achieve a 30% market share by 2030, while helping to make electric mobility more efficient and affordable. Completed in record time, it is the embodiment of our industrial performance and our future-facing strategy, based on the expansion of our product and technology portfolio.
This is also an important day for our region, which is once again showing its dynamic and exemplary approach to industrial innovation, with technologies designed, developed, and manufactured within our ecosystem. We will create jobs and continue to showcase French and European knowhow in global semiconductor markets.”
Original – Soitec
