BERNIN, France, May 13 2002 (PRIMEZONE) -- Soitec, the world's leading supplier of SOI* wafers, today announced its consolidated results for the fiscal year ended March 31, 2002. The results confirm the strength of Soitec's position in its fast-growing market and the solidity of its business model.
(in million Euros) 2001/2002 2000/2001 Sales 93.5 43.3 Gross profit 35.0 11.6 Gross margin 37% 27% Research and development costs 5.6 1.4 Commercial and general costs 11.1 7.8 Operating profit 18.3 2.4 Net income 22.0 4.1 EPS*(euro) 0.39 0.07 * undiluted
Soitec's strong growth in profits is the result of the very solid business activity and strict control over its production costs.
Sales growth driven by new applications in production
Soitec again grew its business in 2001/2002 with sales rising by a factor of 2.16 over the prior year to 93.5 million Euros.
Highlights during the year were:
-- Continuing strong demand in the SOI market for high-end,
high-value-added applications, for which Soitec is today the
leading supplier.
-- The progressive installation of 8 production lines in the Bernin 1
fab that enabled the company to meet increasing demand from
customers in production during the year as well as from customers
at the qualification stage.
-- The start, in advance of plan, of initial production of 300mm
wafers, with the first 300mm wafers made entirely in Bernin 1
being delivered as from January 2002.
Soitec also signed two major contracts in 2001/2002 with AMD and with OKI Electric both of whom decided to select Soitec's SOI wafers to develop new generations of microprocessors and advanced microelectronic chips.
Strict management control over production costs
The strong sales growth over the year led to a significant increase in profits. The gross margin rose from 27% of sales in 2000/2001 to 37% of sales in 2001/2002. Operating profit jumped from 2.4 million Euros to 18.3 million Euros and net income came in at 22.0 million Euros equal to an EPS of 0.39 Euros.
Soitec's firm grip on production costs meant that the production margin rose from 27.8% of sales in 2000/2001 to 39.1% of sales in 2001/2002. During the year, the volume of wafers sold (mainly 200mm wafers) rose by 113% whilst raw material costs rose by only 71% and process costs by 93%.
In line with the Group's expectations these very satisfying results confirm the solidity of the company's development model. Soitec has significantly improved its profitability during the initial production ramp up in preparation for the next stage in its development, notably the opening of its second production plant (Bernin 2) in July 2002 as planned.
Increased financial resources
Soitec substantially strengthened its financial position during the year with its successful convertible bond issue of 115 million Euros in addition to generating operating cash flow of 15.4 million Euros.
At March 31, 2002, Soitec had cash reserves of 162.9 million Euros.
Outlook: continuing growth in sales and profits
The regular growth of the SOI market expected for the next few years and the very positive trends observed during 2001/2002 have been confirmed at the start of the current fiscal year.
At March 31 2002, the total value of the order book was 75 million Euros, almost double the value one year ago.
Positioned at the high value-added end of the market, in which demand remains buoyant despite the current general semiconductor market climate, Soitec is confident that it can provide strong sales growth over the next few years.
For the year 2002/2003 Soitec anticipates that its full year sales growth should exceed 50% and this should lead to an increase in operating profit.
The year must take into account the impact of the start up of Bernin 2, which immediately and significantly increases fixed costs in advance of sales revenue from the ramp up of the additional capacity. The same phenomenon took place when Bernin 1 came on stream. Therefore because of the start-up of Bernin 2 Soitec anticipates that the full year operating margin should be around 15% in 2002/2003, before returning to the company's structural level of around 20% in 2003/2004.
Finally, Soitec remains confident about the outcome of its lawsuit against Silicon Genesis (SiGen). Soitec also has confidence in the solidity of its development business model. This model is based on leading-edge industrial expertise and complementary revenues from licensing its advanced and exclusive Smart Cut(r) technology, which is protected by a significant patent portfolio.
Reporting Calendar
Sales for the first quarter of the year 2002/2003 will be announced on July 15 2002.
About Soitec
Soitec is the world's leading manufacturer and supplier of SOI wafers for the semiconductor industry. Using Smart Cut(r) technology, Soitec produces an extensive range of fine layer advanced materials for microelectronics, including SOI products (UNIBOND(r)) for microelectronics.
Soitec is listed on the Nouveau Marche of Euronext Paris (Euroclear code 7206). Soitec warrants and OCEANE bonds are also traded on the Nouveau Marche of Euronext Paris.
* Silicon On Insulator
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