Soitec reports FY'24 third quarter revenue
Q3’24 revenue reached €240m, down 12% at constant exchange rates and perimeter compared with Q3’23 - in line with our expectations
Inventory correction by our direct customers continued to weigh on Mobile communications
Strong growth maintained in Automotive & Industrial and sequential rebound achieved in Smart devices revenue
First nine months of FY’24 revenue reached €641m, down 14% both on a reported basis and at constant exchange rates and perimeter
FY’24 revenue guidance revised: revenue expected to be down around 10% year-on-year at constant exchange rates and perimeter, and EBITDA1 margin2 around 34%.
Our $2.1bn revenue ambition initially modeled for FY’26, will be postponed by around one year due to a weaker smartphone market than previously expected
Bernin (Grenoble), France, February 7th, 2024 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced consolidated revenue of 240 million Euros for the third quarter of FY’24 (ended December 31st, 2023), down 13% on a reported basis compared with 274 million Euros achieved in the third quarter of FY’23. This reflects a 12% decline at constant exchange rates and perimeter and a negative currency impact of 1%.
Pierre Barnabé, Soitec’s CEO, commented: “After the very strong sequential rebound achieved in the second quarter, we maintained our third-quarter revenue at a similar level, in line with our expectations. As we indicated during our last communication, the correction of RF-SOI inventories by our customers continues to weigh on revenue, offsetting the continued strong performance of FD-SOI, POI and Power-SOI, strong growth in Automotive & Industrial, and a solid level of revenue in Smart Devices.
We anticipate to continue to face challenging market dynamics on RF-SOI for another couple of quarters. While confirming that we expect a solid Q4’24, we are adjusting our revenue guidance for the full-year, with an organic decline of around 10% year-on-year and an EBITDA margin forecast of around 34%. Expansion into new products remains a key pillar of our strategy, and we are very satisfied with the successes we have achieved.
In Mobile Communications, FD-SOI penetration continues to progress, with the latest flagship smartphones embedding increasingly more content. POI activity accelerates, with two new customers in production in the quarter and more than ten in the qualification phase.
On SmartSiCTM, our roadmap is on track on all aspects: technology, industrial, supply and commercial. We have secured a second customer, with production scheduled to start in the second part of calendar year 2024.
The ongoing deployment of our strong megatrends across our three strategic end markets and our expanding product portfolio support our sustainable growth story. We now expect our $2.1bn revenue outlook to be postponed by around a year.”
FY’24 outlook
FY’24 revenue guidance is revised: revenue is expected to be down around 10% year-on-year at constant exchange rates and perimeter as opposed to a mid-single digit decrease previously expected, and EBITDA margin at around 34% as opposed to around 35%.
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 There was no scope effect, neither in Q3’24 nor in 9m’24