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SOITEC REPORTS FY’23 FIRST QUARTER REVENUE

·8 min read
SOITEC
SOITEC

SOITEC REPORTS FY’23 FIRST QUARTER REVENUE

  • Q1’23 revenue reached €203m, up 12% on a reported basis and up 6% at constant exchange rates and perimeter

  • Performance was driven by sustained growth in Mobile communications and a strong increase in Automotive & Industrial

  • FY’23 guidance confirmed: revenue expected up around 20% at constant exchange rates and perimeter, and EBITDA1 margin2 expected around 36%

Bernin (Grenoble), France, July 25th, 2022 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced consolidated revenue of 203 million Euros for the first quarter of FY’23 (ended June 30th, 2022), up 12% compared with 180 million Euros achieved in the first quarter of FY’22. This reflects the combination of a 6% growth at constant exchange rates and perimeter and a positive currency impact of 6%3.

Paul Boudre, Soitec’s CEO, commented: “We recorded our highest first quarter ever, despite two production interruptions in Bernin, making us confident in our ability to achieve our full-year guidance that will be leading to a new record year. Our performance has been driven by continuous growth in radiofrequency applications driven by the 5G momentum, a sharp increase in automotive applications led by the ongoing deep transformation of the automotive industry, as well as a strong surge in FD-SOI wafer sales across our three end markets.”

First quarter FY’23 consolidated revenue (unaudited)

As indicated during the presentation of its full-year results in June 2022, Soitec is, from now on, reporting its revenue by end market instead of breaking it down by wafer size. This decision was made in order to better reflect the way Soitec is conducting and monitoring its business4.

 

Q1’22

Q1’23

Q1’23/Q1’22

 

 

 

 

 

(Euros millions)

 

 

change reported

chg. at const. exch. rates & perimeter

 

 

 

 

 

Mobile communications

135

152

+13%

+6%

Automotive & Industrial

16

23

+46%

+37%

Smart devices

29

28

-6%

-11%

 

 

 

 

 

Total revenue

180

203

+12%

+6%

Soitec recorded a 6% total revenue increase at constant exchange rates and perimeter in the first quarter of FY’23 compared to the first quarter of FY’22. Performance was driven by sustained growth in Mobile communications revenue and by a strong increase in Automotive & Industrial revenue. Production at Bernin site was affected from April 5th to April 9th by a power outage due to a fire that broke out at an external electricity supply facility, and from June 10th to June 16th by a strike action. Soitec should however be able to progressively make up for the lost production (around 10 days) and does not expect these events to impact its FY’23 guidance.

Mobile communications

In the first quarter of FY’23, Mobile communications revenue reached 152 million Euros, a 6% growth at constant exchange rates and perimeter compared to the first quarter of FY’22. Growth continues to be supported by the adoption of 5G smartphones and WiFi6, as well as the deployment of 5G infrastructure. It mainly reflects an increase in volumes.

RF-SOI wafer sales continue to be boosted by the increase in RF content in every 5G smartphone and by better penetration of high-end phones. Growth is driven by RF-SOI 300-mm, enabled by a good ramp-up in production following the ongoing capacity increase at the Singapore facility.

Sales of FD-SOI wafers for 5G mmWave modules recorded a significant increase confirming the ongoing adoption of this technology by several players.

Regarding sales of POI (Piezoelectric-on-Insulator) wafers dedicated to RF filters for 5G smartphones, Soitec is still in the adoption phase by several customers for the coming quarters.

Automotive & Industrial

Automotive & Industrial revenue reached 23 million Euros in the first quarter of FY’23, a 37% increase at constant exchange rates and perimeter compared to the first quarter of FY’22. Growth reflects a very strong increase in volumes combined with a slightly positive price/mix effect. Demand from the automotive industry is supported by increasing needs for infotainment, ADAS & functional safety, as well as electrical vehicles.

Growth is mainly coming from Power-SOI wafers, which are used for automotive applications, while FD-SOI wafers moved from a minimal contribution of Automotive & Industrial revenue in the first quarter of FY’22 to a substantial proportion in the first quarter of FY’23.

Smart devices

Smart devices revenue reached 28 million Euros in the first quarter of FY’23, a less than 2 million Euros decrease compared to the first quarter of FY’22. Performance reflects lower volumes, including a different timing of sales during the year, partially offset by a positive price/mix effect.

Sales of Imager-SOI wafers, which allow improved imager performance in near infrared, and Photonics-SOI wafers for data transceivers remained at a solid level.

Sales of FD-SOI wafers recorded a strong increase compared to the first quarter of FY’22 confirming pervasive demand for Internet of Things (IoT) and Edge Computing devices across consumer and industrial sectors.

Confirmed FY’23 outlook

Soitec continues to anticipate FY’23 revenue to grow around 20% at constant exchange rates and perimeter, and FY’23 EBITDA1 margin2 to reach around 36%.

Key events of the quarter

CEA, Soitec, GlobalFoundries and STMicroelectronics to advance next generation FD-SOI roadmap for automotive, IoT and mobile applications

On April 8th, 2022, leading semiconductor players CEA, Soitec, GlobalFoundries and STMicroelectronics announced a new collaboration in which they intend to jointly define the industry’s next generation roadmap for FD-SOI technology. Semiconductors and FD-SOI innovation are of strategic value to France and the EU as well as to customers globally. FD-SOI offers substantial benefits for designers and customer systems, including lower power consumption as well as easier integration of additional features such as connectivity and security, a key feature for automotive, IoT and mobile applications.

Soitec released its first 200-mm silicon carbide SmartSiC™ wafer

On May 4th, 2022, Soitec announced the release of its first 200-mm silicon carbide SmartSiC™ wafer, from the pilot line at its Substrate Innovation Center. The release enabled Soitec to demonstrate the quality and performance of 200-mm SmartSiC™ engineered substrates and to conduct a first round of key customer validations. The addition of 200-mm is enlarging Soitec’s SiC product portfolio beyond 150-mm to address an even larger variety of customer requirements, in terms of product quality, reliability, volume, and energy efficiency.

Soitec announced the extension of its Pasir Ris Facility to produce 300mm SOI wafers

On June 8th, 2022, Soitec announced the extension of its Pasir Ris facility in Singapore, with the objective to add a new capacity of 1 million wafers per year. Soitec expects the construction of this extension to start in FY’23, and the fab to enter into operation by the end of FY’25. The robust level of customer demand gives Soitec enough visibility to accelerate the launch of this new fab, which was initially planned for FY’26. Combining Bernin II, Pasir Ris I and Pasir Ris II, Soitec’s total 300-mm SOI production capacity will ultimately reach 2.7 million wafers per year. The extension of Pasir Ris is also due to include additional refresh and epitaxy capacities.

Post-closing event

STMicroelectronics and GlobalFoundries to advance FD-SOI ecosystem with new 300mm manufacturing facility in France

On July 11th, 2022, STMicroelectronics and GlobalFoundries announced the creation of a new, jointly-operated 300-mm semiconductor manufacturing facility adjacent to ST’s existing site in Crolles, France. This new facility will support several technologies, in particular FD-SOI-based technologies, and will cover multiple variants. This includes GF’s market leading FDX technology and ST’s comprehensive technology roadmap down to 18nm, which are expected to remain in high demand for Automotive, IoT, and Mobile applications for the next few decades. The facility is targeted to ramp at full capacity by 2026, with up to 620,000 wafers per year production at full build-out.

# # #

Analysts conference call to be held in English on Tuesday 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/20220726_1

# # #

Agenda

Soitec’s Annual General Meeting will be held on July 26th, 2022.

Q2’23 revenue is due to be published on October 26th, 2022, 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 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. The French version of the 2021-2022 Universal Registration Document, together with English courtesy translations 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 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.

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 3,500 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 1 53 32 61 51 isabelle.laurent@oprgfinancial.fr

 

Fabrice Baron
+33 1 53 32 61 27
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 €70,301,160, 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 (Q1’23 unaudited)

Quarterly revenue

Q1’22

Q2’22

Q3’22

Q4’22

Q1’23

 

Q1’23/Q1’22

(Euros thousands)

 

 

 

 

 

 

change reported

chg. at const. exch. rates and perimeter1

Mobile communications

135,121

142,282

145,709

200,031

152,105

 

+12.6%

+6.2%

Automotive & Industrial

15,917

17,212

18,815

22,461

23,160

 

+45.5%

+36.7%

Smart devices

29,390

33,174

43,045

59,587

27,604

 

-6.1%

-10.9%

     

 

 

 

 

 

 

 

 

Total revenue

180,427

192,668

207,569

282,079

202,869

 

+12.4%

+6.1%

1 At constant exchange rates and comparable scope of consolidation:

  • There is no scope effect in Q1’22, Q2’22, Q3’22.

  • In Q4’22 and Q1’23, 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 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.

4 Soitec keeps unchanged its two operating segments according to IFRS 8, i.e. production and marketing of substrates and components for the semiconductor industry (Electronics) on the one hand, and other discontinued operations of the Group (Other Businesses) on the other hand.

Attachment