SOITEC : SOITEC REPORTS FY'18 FIRST QUARTER REVENUES
(Thomson Reuters ONE) -
SOITEC REPORTS FY'18 FIRST QUARTER REVENUES
* Q1'18 revenues reached ?69.6m, up 22% at constant exchange rates compared
with Q1'17
* Sustained growth in Communication & Power 200-mm wafer sales compared with
Q1'17
* Strong growth in 300-mm wafer sales versus Q'17 illustrating the early
success of Soitec's new Digital (FD-SOI) and Emerging-SOI products
* FY'18 expectations unchanged: around 25% revenue growth at constant exchange
rates and Electronics EBITDA[1] margin[2] at minimum 20%
Bernin (Grenoble), France, July 19th, 2017 - Soitec (Euronext Paris), a world
leader in designing and manufacturing innovative semiconductor materials, today
announced consolidated revenues of 69.6 million Euros for the first quarter of
FY'18 (ended June 30(th) 2017), up 26% compared with 55.4 million Euros in the
first quarter of FY'17. This represents a 22% increase at constant exchange
rates in line with the Group's expectations for the first quarter of FY'18 sales
growth to be at least 20% at constant exchange rates compared to the first
quarter of FY'17. On a sequential basis, first quarter FY'18 revenues were 1%
higher at constant exchange rates than in the fourth quarter of FY'17.
Paul Boudre, Soitec's CEO and Chairman of the Board, commented: "We started our
fiscal year 2018 on the same positive note than we ended our fiscal year 2017.
Compared to the first quarter of last year, our performance was driven by
sustained demand in Communication & Power 200-mm wafer as well as the
particularly high level of growth that we enjoyed in 300-mm wafer sales thanks
to the early success of our new Digital and Emerging SOI products. The 22%
revenue increase at constant exchange rates that we recorded in the first
quarter was in line with our expectations and paves the way for higher and more
profitable growth, as we expect in fiscal year 2018 around 25% revenue growth at
constant exchange rates and Electronics EBITDA margin to reach a minimum of
20%."
Comments on first quarter FY'18 sales by business unit
Communication & Power
In the first quarter of FY'18, demand for both radiofrequency (RF-SOI) and power
electronics (Power-SOI) products continued to drive the sales of 200-mm wafers,
whilst the sales of RF 300-mm wafers began to gain momentum.
The RF-SOI product line is dedicated to the ever-growing needs of smartphones.
It has become the solution of choice for switch and antenna tuners, as it helps
coping with the rising number of frequency bands and higher data speed
requirements of mobile communications.
The Power-SOI substrates are dedicated to the manufacture of intelligent power
conversion circuits that are widely used in the automotive industry, but also,
increasingly, in industrial and consumer applications (including household
appliances).
Digital
In the digital business unit, revenues have sharply increased in the first
quarter of FY'18 compared to the first quarter of the previous year despite the
decline in sales related to PD-SOI 300-mm wafers (partially depleted silicon-on-
insulator). This decline reflects the drop in demand for ASICs, servers and
networking applications that already occurred in the course of the fiscal year
2017.
Sales of FD-SOI wafers (fully depleted silicon-on-insulator) for digital mobile
and low power applications such as smartphones, automotive, consumer electronics
and Internet-of-Things increased sharply from the first quarter of FY'17. They
now include sales of wafers actually used in final products - not just wafers
used for the qualification process between foundries and their fabless
customers. During the first quarter of FY'18, more end-products based on the FD-
SOI technology were already on the market, including connected watches, personal
digital assistants and driver assistance systems.
In the meantime, Soitec enjoyed in the first quarter of FY'18 a high level of
sales of SOI substrates for emerging applications, partly due to Silicon
Photonics and even more so to Imagers. Indeed, Imager-SOI revenues recorded a
strong growth in the first quarter of FY'18, driven in particular by the next
generation of Image Sensors. Demand for Photonics-SOI is supported by the needs
for optimizing data center transmission speed for applications hosted in the
Cloud.
First quarter FY'18 consolidated sales (unaudited)
Q1'17 Q1'18 Q1'18/Q1'17
(annual change)
(Euros thousands) % % at cst FX
200-mm 42,677 46,534 +9% +6%
300-mm 11,355 21,124 +86% +80%
Royalties and IP 1,405 1,973 +40% +36%
Total revenues 55,437 69,630 +26% +22%
Whilst 200-mm wafer sales enjoyed another solid growth in the first quarter of
FY'18, the high growth recorded in 300-mm wafer sales compared to the first
quarter of FY'17 resulted in a more balanced breakdown of sales: indeed, 300-mm
wafer sales raised from 20% of total sales in the first quarter of FY'17 to 30%
of total sales in the first quarter of FY'18; consequently, 200-mm wafer sales
went from 77% to 67% of total sales.
200-mm wafer sales
Sales of 200-mm wafers went up 6% at constant exchange rates in the first
quarter of FY'18 compared with the first quarter of FY'17.
Demand for 200-mm wafers remained strong and the increase in sales mainly
reflects higher volumes of RF-SOI wafers. The Bernin I 200-mm production site
continued to operate at full capacity in the first quarter of FY'18. The volume
increase essentially comes from the 200-mm wafers produced by Simgui's
manufacturing facility in Shanghai, using Soitec's proprietary Smart Cut(TM)
technology. Simgui's site is fully qualified by Soitec key customers and
additional production by Simgui will marginally help Soitec managing its
worldwide manufacturing capacity to better meet market demand for 200-mm SOI
wafers.
On a sequential basis, sales of 200-mm wafers raised by 1% at constant exchange
rates compared to the fourth quarter of FY'17 thanks in particular to the
additional volumes outsourced to Soitec's partner Simgui.
300-mm wafer sales
Sales of 300-mm wafers in the first quarter of FY'18 were up 80% at constant
exchange rates compared with the first quarter of FY'17. This is the result of
combination of:
* the confirmed decline of the PD-SOI product line;
* a much higher level of sales of FD-SOI products;
* a sharp increase in Emerging SOI 300-mm products for new digital
applications, in particular in Imager-SOI;
* higher sales in RF 300-mm wafers.
On a sequential basis, 300-mm wafer sales of the first quarter of FY'18 were 2%
higher at constant exchange rates than in the fourth quarter of FY'17. After the
strong rebound experienced at the Bernin II 300-mm production site in the third
and fourth quarter of FY'17, volumes have only raised slightly. The capacity
utilization rate reached around 30% in the first quarter of FY'18 and it is
still expected to increase gradually throughout FY'18 and reach around 50%
towards the end of FY'18 / early FY'19.
Royalties and intellectual property
Revenues from royalties and intellectual property (3% of total sales) reached
2.0 million Euros in the first quarter of FY'18, compared with 1.4 million Euros
recorded in the first quarter of the previous fiscal year.
Key events since the beginning of FY'18
Capex plan
Since the beginning of FY'18, Soitec has been going ahead with the 40 million
Euros investment at Bernin II aimed at progressively increasing FD-SOI
production capacity from 100,000 to 400,000 FD-SOI wafers (300mm) per year
whilst Bernin II full capacity will remain at 650,000 wafers per year. The
project is progressing well. As a reminder, these capex will be spread between
FY'18 and FY'19.
On June 14(th), 2017 Soitec announced its intention to reopen its 300mm facility
in Singapore in order to address long-term demand for FD-SOI wafers.
Early amortization of 2018 OCEANEs
On July 7(th), 2017 Soitec announced the early amortization, with an effective
date on August 8, 2017, of all the outstanding 2018 OCEANEs for which the shares
allocation right has not been exercised. As of July 7(th), 2017 the outstanding
2018 OCEANEs were representing approximately 40.5% of the initially issued
bonds. Would all the holders opt for shares allocation, a maximum of 1,069,547
new shares would be issued, representing approximately 3.5% of the share
capital, subject to adjustments of the conversion ratio. This transaction will
enable Soitec to early reduce its debts by ?41.8 million.
Outlook
Soitec confirms expecting FY'18 sales to grow by around 25% at constant exchange
rates and FY'18 Electronics EBITDA(1) margin(2) to reach a minimum of 20%.
Disclaimer
This document was prepared by Soitec (the "Company") on July 17, 2017 in
connection with the announcement of the sales figures of the first quarter of
fiscal year 2017-2018.
This document is provided for information purposes only. It is public
information only.
The Company's business operations and financial position is described in the
Company's Document de Référence 2017-2018 registered by the Autorité des marchés
financiers (the "AMF") (the "Document de Référence"). Copies of the French
version of the Document de Référence are available through the Company and may
also be consulted on the AMF's website (www.amf-france.org) and on the Company's
website (www.soitec.com).
Your attention is drawn to the risk factors described in Chapter 4 of the
Document de Référence. This document contains summary information and should be
read in conjunction with the Document de Référence. In the event of a
discrepancy between this document and the Document de Référence, the Document de
Référence shall prevail.
The information contained in this document has not been independently verified.
No representation, warranty or undertaking, express or implied, is made as to,
and you may not rely on, the fairness, accuracy, completeness or correctness of
the information and opinions contained in this document. The information
contained in this document is provided only as of the date hereof. Neither the
Company, nor its shareholders or any of their respective subsidiaries, advisors
or representatives, accept any responsibility or liability whatsoever for any
loss arising from the use of this document or its contents or in connection
whatsoever with this 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 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 4 of the Document de Référence 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 redeem 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
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.
Agenda
Q2'18 sales figures are due to be published on October 18(th), 2017, after
market close.
About Soitec
Soitec (Euronext, Tech 40 Paris) is a world leader in designing and
manufacturing innovative semiconductor materials. The company uses its unique
technologies and semiconductor expertise to serve the electronics markets. With
more than 3,000 patents worldwide, Soitec's strategy is based on disruptive
innovation to answer its customers' needs for high performance, energy
efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D
centers and offices in Europe, the U.S. and Asia.
Soitec and Smart Cut are registered trademarks of Soitec.
For more information, please visit www.soitec.com and follow us on Twitter:
(at)Soitec_EN
Investor Relations: Media Contact:
Steve Babureck Camille Dufour
+33 (0)6 16 38 56 27 +33 (0)6 79 49 51 43
+1 858 519 6230 camille.dufour(at)soitec.com
steve.babureck(at)soitec.com
Isabelle Laurent
+33 (0)1 53 32 61 51
isabelle.laurent(at)ddbfinancial.fr
Fabrice Baron
+33 (0)1 53 32 61 27
fabrice.baron(at)ddbfinancial.fr
# # #
Appendix
Quarterly Q1 Q2 Q3 Q4 Q1
sales
(Euros '16 '17 '16 '17 '16 '17 '16 '17 '17 '18
thousands)
200-mm 40,798 42,677 43,030 44,706 44,219 47,896 42,463 47,215 42,677 46,534
300-mm 11,790 11,355 10,715 10,676 13,097 13,366 17,995 21,266 11,355 21,124
Royalties 1,467 1,405 1,053 1,314 1,593 1,806 4,975 2,026 1,405 1,973
and IP
Total 54,055 55,437 54,799 56,697 58,908 63,068 65,432 70,506 55,437 69,630
revenues
Quarterly Q1'17 Q2'17 Q3'17 Q4'17 Q1'18
sales
(vs change change change change change change change change change change
previous reported at cst reported at cst reported at cst reported at cst reported at cst
year) FX FX FX FX FX
200-mm +4.6% +6.5% +3.9% +4.3% +8.3% +6.6% +11.2% +7.3% +9.0% +5.6%
300-mm -3.7% -1.9% -0.4% -0.0% +2.1% +0.4% +18.2% +14.0% +86.0% +80.2%
Royalties -4.2% -2.5% +24.8% +25.2% +13.4% +11.6% -59.3% -60.7% +40.4% +36.1%
and IP
Total +2.6% +4.4% +3.5% +3.8% +7.1% +5.4% +7.8% +4.0% +25.6% +21.7%
revenues
--------------------------------------------------------------------------------
[1] The EBITDA represents the operating gain (EBIT) before depreciation,
amortization, non-monetary items related to share-based payments, and changes in
provisions on current assets and provisions for risks and contingencies. This
indicator 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] Electronics EBITDA margin = EBITDA from continuing operations / Sales.
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Source: SOITEC via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.07.2017 - 17:45 Uhr
Sprache: Deutsch
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