Soitec reports total consolidated sales of 162.6 million Euros for H1 2011-2012
• H1 Consolidated sales up by 18.4% year on year in absolute and wafer sales sequential growth of 20.0% at constant exchange
• Unfavourable exchange impact on H1 operating margin
• Full year growth should outperform the sector despite semiconductor slow down
Bernin, France, October 17, 2011 – Soitec (Euronext Paris), world leader in generating and manufacturing revolutionary semiconductor materials for the electronics and energy industries, today reported second quarter consolidated sales of 79.8 million Euros giving consolidated sales of 162.6 million Euros for the first six months of the year equal to growth of 18.4% versus the same period last year. Over the same period, Dollar/Euro exchange rate weakened by 10%. On a sequential basis, total wafer sales grew by 20.0% at constant exchange in line with guidance.
| Sales (Millions of Euros) | 2011-2012 | 2010-2011 | Change |
| First Quarter | 82.8 | 68.6 | 20.7% |
| Second Quarter | 79.8 | 68.7 | 16.2% |
| First Half Total | 162.6 | 137.3 | 18.4% |
First half wafer sales delivered strong growth despite recent cautious expectations from major customers
Total wafer sales for the second quarter of 70.8 million Euros ended with a sequential reduction of 8.5% (10.5% at constant exchange) driven by recent cautious expectations from major customers. Q2 small diameters wafer sales were reduced sequentially by 18.6% (20.4% at constant exchange) driven by significant slowdown in demand from automotive and lighting (CFL lamps) markets. 300 mm wafers sales were down sequentially by 5.8% (7.9% at constant exchange).
Second quarter revenues from other activities were 1.9 million Euros from licensing, 4.7 million Euros from Layer Transfer Solutions and 2.3 million Euros from Specialty Electronics. Solar Division reported no significant contribution.
In the first half of the financial year, total wafer sales were up sequentially by 15.3% or 20.0% at constant exchange and on a year on year basis by 19.0% and 32.2% at constant exchange.
300 mm wafers which represented 80% of total wafer sales, grew sequentially by 22.8% or 27.8% at constant exchange and on a year on year basis by 20.4% or 33.7% at constant exchange. All other wafer sales were down sequentially by 7.7% or 3.9% at constant exchange and on a year on year basis they increased by 13.6% or 26.3% at constant exchange.
Licensing revenues were 2.7 million for the half year. Layer Transfer Solutions Division recorded sequential growth of 32.7% with sales of 7.3 million Euros. Specialty Electronics recorded almost stable sales at 4.5 million Euros for the first half of the year.
Unfavourable exchange impact and no significant solar revenue will lead to a current operating loss for H1 – Despite expected semiconductor slow down Company is expecting to outperform the sector over the full year
Despite year on year wafer sales growth, the unfavourable exchange movement of 10.0% (from 1.28 in H1 last year to 1.42 in H1 this year) and no significant solar revenue over the period lead to a negative impact on margins. As a result, the company anticipates announcing a current operating loss for the first half of the year compared to a first half income of 2.5 million Euros last year. At constant exchange rate, H1 operating income would have been positive.
Recent news flow suggests continued new product pipe line on SOI 32 nm technology. Due to overall economic uncertainty, industry is cautious, focusing on inventory reduction that will drive a significant slowdown in coming quarters. Despite anticipated reduction in wafer sales over the second half of the year, the company is expecting for the full year to outperform the sector. Solar Division is waiting for approval from the California Public Utilities Commission on already announced contracts to trigger investment program in California.
Agenda
The consolidated results of the first half of the 2011-2012 financial year will be published on 16 November 2011 before opening of the Paris Bourse.
About Soitec
Soitec is an international manufacturing company, a world leader in generating and manufacturing revolutionary semiconductor materials at the frontier of the most exciting energy and electronic challenges. Soitec’s products include substrates for microelectronics (most notably SOI : Silicon-on-Insulator) and concentrating photovoltaic systems (CPV). The company’s core technologies are Smart Cut™, Smart Stacking™ and Concentrix™, as well as expertise in epitaxy. Applications include consumer and mobile electronics, microelectronics-driven IT, telecommunications, automotive electronics, lighting products and solar power plants for large-scale utilities. Soitec has manufacturing plants and R&D centers in France, Singapore, Germany, and the United States. For more information, visit: www.soitec.com.
International Media Contact
Camille Darnaud-Dufour
+33 (0)6 79 49 51 43
(any time zone)
camille.darnaud-dufour@soitec.com
Investor Relations
Olivier Brice
+33 (0)4 76 92 93 80
olivier.brice@soitec.com
French Media Contact
H&B Communication
Marie-Caroline Saro
+33 (0)1 58 18 32 44
mc.saro@hbcommunication.fr
Claire Flin
+33 (0)1 58 18 32 53
c.flin@hbcommunication.fr