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 EBITDA[1] margin[2] 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.”
[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
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%.
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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
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