Soitec confirms guidance for FY’24
and publishes its outlook for FY’25
Bernin (Grenoble), France, March 27th, 2024 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today confirms its guidance for the fiscal year 2024 (ending on March 31st, 2024) and provides some preliminary indications about its prospects for the fiscal year 2025 (ending on March 31st, 2025).
FY’24 guidance
Soitec confirms that it expects revenue for FY’24 to decline by around 10% at constant exchange rates and perimeter and an EBITDA1 margin2 for FY'24 of around 34%, in line with the guidance given on February 7th, 2024. FY’24 results will be published on May 22nd, 2024.
FY’25 outlook
Looking ahead, Soitec continues to anticipate significant growth in its three end-markets, where it is strengthening its leadership in SOI, and successfully executing on its expansion in compound semiconductors, particularly POI and SmartSiC™. In the short term, Soitec therefore anticipates continued strong performance in FD-SOI, POI and Power-SOI, as well as the start of SmartSiC™ ramp-up.
Regarding RF-SOI, the second half of FY’24 benefited from restocking by major customers in anticipation of a smartphone market rebound in 2024, and significant orders from new customers. As already reported in the Q3’24 release the level of RF-SOI inventories at foundries level remains high and will impact the performance of H1 FY’25. However, Soitec starts to see signs of improvement with some inventory digestion downstream at OEMs and at Fabless level.
As a result, Soitec expects revenue for FY’25 to be stable at constant exchange rates and perimeter as compared to FY’24 with a potential upside if the RF business recovers earlier, with strong seasonality effect. H1’25 revenue is expected to decline by around 15% year-on-year at constant exchange rates and perimeter, with especially a low point expected in Q1’25. Soitec then expects revenue to rebound in H2’25, driven by the end of RF-SOI inventory correction with foundries, the strong structural growth of its SOI products, the continued adoption of POI and the start of the SmartSiCTM ramp-up in the second half of FY’25. EBITDA1 margin2 for FY’25 is expected to be around 35%.
Mid term outlook
Soitec expects the RF-SOI inventory correction to end in FY’25, and its long-term growth trajectory to resume rapidly thereafter. It is confident in its growth engines supported by the strong penetration of 5G, the advent of electrification and the acceleration of artificial intelligence, as well as the successful expansion of its product portfolio, in SOI and Compound semiconductors.
This expected strong rebound will be driven by the resumption of growth in RF-SOI, the progression of our leadership in SOI products (FD-SOI, Power-SOI, Photonics-SOI), the continued acceleration of POI, and the significant revenue generated by SmartSiCTM. The group will continue to expand its leadership to new customers and new regions.
Soitec will provide guidance on an annual basis and will share a FY’26 guidance at the end of FY’25.
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Agenda
FY’24 Results are due to be published on May 22nd, 2024, after market close.
Soitec Management will be presenting the results in Paris on May 23rd, 2024
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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 2022-2023 Universal Registration Document (which notably includes the 2022-2023 Annual Financial Report) which was filed on June 14th, 2023 with the French stock market authority (Autorité des Marchés Financiers, or AMF) under number D.23-0482, as well as in the Company’s 2023-2024 half-year report released on November 15th, 2023. The French versions of the 2022-2023 Universal Registration Document and of the 2023-2024 half-year report, together with English courtesy translations for information purposes of both documents, 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 (Risk factors and controls mechanism) of the Company’s 2022-2023 Universal Registration Document.
This document contains summary information and should be read in conjunction with the 2022-2023 Universal Registration Document and the 2023-2024 half-year report.
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 (Risk factors and controls mechanism) of the 2022-2023 Universal Registration Document may have an impact on these forward-looking statements. In particular, the future consequences of geopolitical conflicts, notably 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 (Risk factors and controls mechanism) of the 2022-2023 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.
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About Soitec
Soitec (Euronext - Tech Leaders), a world leader in innovative semiconductor materials, has been developing cutting-edge products delivering both technological performance and energy efficiency for over 30 years. From its global headquarters in France, Soitec is expanding internationally with its unique solutions, and generated sales of 1.1 billion Euros in fiscal year 2022-2023. Soitec occupies a key position in the semiconductor value chain, serving three main strategic markets: mobile communications, automotive and industrial, and smart devices. The company relies on the talent and diversity of its 2,100 employees, representing 50 different nationalities, working at its sites in Europe, the United States and Asia. Soitec has registered over 4,000 patents.
Soitec, SmartSiC™ and Smart Cut™ are registered trademarks of Soitec.
For more information: https://www.soitec.com/en/ and follow us on X: @Soitec_Official
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| Investor Relations: investors@soitec.com | Media contacts: Isabelle Laurent +33 6 42 37 54 17 isabelle.laurent@oprgfinancial.fr Fabrice Baron +33 6 14 08 29 81 fabrice.baron@oprgfinancial.fr |
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Soitec is a French joint-stock corporation with a Board of Directors (Société Anonyme à Conseil d’administration) with a share capital of €71,424,604 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.
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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
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