SOITEC SOITEC REPORTS FY'18 FOURTH QUARTER REVENUES
- Revenue growth increased in Q4'18, sales reaching €92m, up 42% at constant exchange rates compared with Q4'17
- Communication & Power 200-mm wafer sales increased by 14% at constant exchange rates compared with Q4'17
- 300-mm wafer sales nearly doubled at constant exchange rates versus Q4'17, with a strong momentum across all product lines
- FY'18 revenues reached €311m, up 31% at constant exchange rates compared with FY'17, significantly above guidance thanks to the strong performance achieved in Q4'18
- FY'18 Electronics EBITDA[1] margin[2] now expected well above 25% versus previous guidance at around 25%
Bernin (Grenoble), France, April 18th, 2018 - Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced consolidated revenues of 91.7 million Euros for the fourth quarter of FY'18 (ended March 31st 2018), up 30% compared with 70.5 million Euros in the fourth quarter of FY'17. This represents a 42% increase at constant exchange rates. On a sequential basis, fourth quarter FY'18 revenues were up 23% at constant exchange rates compared to the third quarter of FY'18.
For the full of FY'18, revenues reached 310.6 million Euros. Compared with FY'17, they were up 26%, or +31% at constant exchange rates, significantly above the sales growth of around 25% at constant exchange rates which was expected for the full year of FY'18.
Paul Boudre, Soitec's CEO, commented: "We had a particularly strong fourth quarter which allows us to end up the fiscal year 2017-2018 with an annual revenue growth above 30% excluding currency impact. In Bernin, our 200-mm plant continues to operate at full capacity and our 300-mm plant reached more than 50% utilization rate in the fourth quarter thanks to a strong demand in FD-SOI, Imager-SOI, Photonics SOI and radiofrequency 300-mm wafers.
This performance bodes well for the future as we continue to see significant increase in the SOI footprint in our key end-markets: smartphones, automotive, cloud infrastructure and Internet of Things" added Paul Boudre.
Fourth quarter FY'18 business review by business unit
Communication & Power
In the fourth quarter of FY'18, 200-mm wafer sales - radiofrequency (RF-SOI) and power electronics (Power-SOI) products - have shown additional incremental growth compared to the third quarter of FY'18, whilst RF 300-mm wafer sales have gained further momentum.
Particularly well suited for smartphones' switch and antenna tuners, RF-SOI helps coping with the rising number of frequency bands and higher data speed requirements of mobile communications. RF-SOI content is increasing significantly as more antennas are needed to boost data rate. In the meantime, the deployment of LTE Advanced Pro (4G+) requires greater RF complexity.
Demand for Power-SOI substrates remains strong as power conversion circuits are widely used in the automotive industry, but also, increasingly, in industrial, consumer and white goods applications.
Digital
In the digital business unit, revenues have risen significantly in the fourth quarter of FY'18 compared to third quarter of FY'18.
Sales of FD-SOI wafers (fully depleted silicon-on-insulator) have steadily grown quarter after quarter throughout FY'18. FD-SOI provides strong value across many applications. Traction is strong with designs going into various applications for automotive (ADAS, Infotainment, Radar/ Lidar), for smartphones, IOT and Home (wireless communication, single chip SOC, Edge Computing / AI Processors, ISP for security cameras) and for the Cloud (cyber currency, blockchain processing).
Since the strong surge recorded in the first quarter of FY'18 in the level of sales of SOI substrates for emerging applications, sales of Imagers and Silicon Photonics remained at a high level throughout the year and even increased in the fourth quarter of FY'18.
Sales of Imager-SOI substrates are driven by strong activity in the image sensor segment. The solution based on SOI substrates provides the highest level of performance in 3D imaging for consumer application.
Sales of Photonics-SOI are supported by the demand for increasing data transmission speed in data centers. However, other applications such as phone infrastructure connecting base stations or high-speed connectivity between ADAS computing units in cars, could bring further potential to Photonics-SOI.
In the fourth quarter of FY'18, sales related to PD-SOI 300-mm wafers (partially depleted silicon-on-insulator) that are used for ASICs, servers and networking applications, benefitted from a usual positive seasonal effect to reach a slightly higher level than in the fourth quarter of last year.
Fourth quarter FY'18 consolidated sales (unaudited)
| Q4'17 | Q4'18 | Q4'18/Q4'17 | ||
| (Euros thousands) | % | % at cst FX | ||
| 200-mm | 47,215 | 49,136 | +4% | +14% |
| 300-mm | 21,266 | 36,495 | +72% | +88% |
| Royalties and IP | 2,026 | 6,055 | +199% | +227% |
| Total revenues | 70,506 | 91,686 | +30% | +42% |
200-mm wafer sales enjoyed a strong double-digit growth at constant exchange rates in the fourth quarter of FY'18 compared to the fourth quarter of FY'17. In the meantime, 300-mm wafer sales have almost doubled compared to the fourth quarter of FY'17. This resulted in a further rebalancing of Soitec sales breakdown: indeed, 300-mm wafer sales rose from 30% of total sales in the fourth quarter of FY'17 to 40% of total sales in the fourth quarter of FY'18; consequently, the proportion of 200-mm wafer sales went down from 67% to 54% of total sales.
200-mm wafer sales
Sales of 200-mm wafers went up 14% at constant exchange rates in the fourth quarter of FY'18 compared with the fourth quarter of FY'17.
Demand for 200-mm wafers remained strong. Compared to the fourth quarter of FY'17, the increase in sales in the fourth quarter of FY'18 reflects slightly higher volumes as well as positive combined mix and price effect. As the Bernin I 200-mm production site is operating at full capacity, the volume increase comes from the 200-mm wafers produced by Simgui's manufacturing facility in Shanghai, using Soitec's proprietary Smart Cut(TM) technology. These growing additional volumes from Simgui help Soitec to better meet market demand for 200-mm SOI wafers.
On a sequential basis, sales of 200-mm wafers rose by 2% at constant exchange rates compared to the third quarter of FY'18.
300-mm wafer sales
Sales of 300-mm wafers in the fourth quarter of FY'18 were up 88% at constant exchange rates compared with the fourth quarter of FY'17. This results from of a strong growth in sales of FD-SOI, Imager-SOI, Photonics-SOI and RF 300-mm wafers combined with a small increase in sales of PD-SOI product line.
On a sequential basis, 300-mm wafer sales of the fourth quarter of FY'18 were 50% higher at constant exchange rates than in the third quarter of FY'18. The capacity utilization rate of Bernin II 300-mm production site has further increased in the fourth quarter of FY'18, standing at more than 50%, ahead of the around 50% rate which was expected towards the end of FY'18 / early FY'19.
Royalties and intellectual property
Revenues from royalties and intellectual property (7% of total sales) reached 6.1 million Euros in the fourth quarter of FY'18, compared with 2.0 million Euros recorded in the fourth quarter of the previous fiscal year. This strong surge is partly due to revenue related to the completion of a technology transfer service provided to Simgui, Soitec's Chinese subcontractor and distributor in China. It is also due to the recognition of remaining revenue related to a no longer used license which was sold to a customer in 2011 and for which a recognition over a period of 10 years was initially applied.
Full year FY'18 consolidated sales (unaudited)
| FY'17 | FY'18 | FY'18/FY'17 | ||
| (Euros thousands) | % | % at cst FX | ||
| 200-mm | 182,495 | 192,413 | +5% | +9% |
| 300-mm | 56,663 | 106,300 | +88% | +95% |
| Royalties and IP | 6,551 | 11,918 | +82% | +89% |
| Total revenues | 245,710 | 310,631 | +26% | +31% |
For the full of FY'18, revenues reached 310.6 million Euros, up 31% at constant exchange rates compared with FY'17.
200-mm wafer sales were up 9% at constant exchange rates compared to FY'17 while 300-mm wafer sales were up 95% at constant exchange rates.
Outlook
Based on the strong sales performance achieved in the fourth quarter of FY'18, Soitec now expects FY'18 Electronics EBITDA1 margin2 to be well above 25% against a guidance of around 25% previously stated.
Disclaimer
This document was prepared by Soitec (the "Company") on April 18th, 2018 in connection with the announcement of the sales figures of the fourth quarter of FY'18.
This document is provided for information purposes only. It is public information only.
The Company's business operations and financial position is described in the Company's Document de Référence 2016-2017 registered by the Autorité des marchés financiers (the "AMF") on July 4th, 2017 under visa D.17-0720 (the "Document de Référence") and in the Company's FY'18 half-year report released on November 29th, 2017. Copies of the Document de Référence and of the FY'18 half-year report are available in French and English languages through the Company and may also be consulted and downloaded on the AMF's website (www.amf-france.org) and on the Company's website (www.soitec.com).
Your attention is drawn to the risk factors described in Chapter 4 of the Document de Référence. A review of these risks factors has been conducted after closing of FY'18 first half and no new risk was found. This document contains summary information and should be read in conjunction with the Document de Référence and the FY'18 half-year report. In the event of a discrepancy between this document and the Document de Référence or the FY'18 half-year report, the Document de Référence or, as the case may be, the FY'18 half-year report, shall prevail.
The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and you may not rely on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this document. The information contained in this document is provided only as of the date hereof. Neither the Company, nor its shareholders or any of their respective subsidiaries, advisors or representatives, accept any responsibility or liability whatsoever for any loss arising from the use of this document or its contents or in connection whatsoever with this document.
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 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 4 of the Document de Référence 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.
Agenda
FY'18 results are due to be published on June 13th, 2018, after market close.
The annual shareholders' general meeting will be convened on July 26th, 2018, at the headquarters' office.
About Soitec
Soitec (Euronext, Tech 40 Paris) is a world leader in designing and manufacturing innovative semiconductor materials. The company uses its unique technologies and semiconductor expertise to serve the electronics markets. With more than 3,000 patents worldwide, Soitec's strategy is based on disruptive innovation to answer its customers' needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the U.S. and Asia.
Soitec and Smart Cut are registered trademarks of Soitec.
For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN
| Investor Relations: Steve Babureck +33 (0)6 16 38 56 27 +1 858 519 6230 steve.babureck@soitec.com | Media Contact: Camille Dufour +33 (0)6 79 49 51 43 camille.dufour@soitec.com Isabelle Laurent +33 (0)1 53 32 61 51 isabelle.laurent@ddbfinancial.fr Fabrice Baron +33 (0)1 53 32 61 27 fabrice.baron@ddbfinancial.fr |
# # #
Soitec is a French joint-stock corporation with a Board of Directors (Société Anonyme à Conseil d'administration) with a share capital of € 62,762,070.50, 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.
# # #
Appendix
Consolidated sales (Q3 and Q4 FY'18 unaudited)
| Quarterly sales | Q4 | Q1 | Q2 | Q3 | Q4 | |||||
| (Euros thousands) | '16 | '17 | '17 | '18 | '17 | '18 | '17 | '18 | '17 | '18 |
| 200-mm | 42,463 | 47,215 | 42,677 | 46,534 | 44,706 | 47,389 | 47,896 | 49,355 | 47,215 | 49,136 |
| 300-mm | 17,995 | 21,266 | 11,355 | 21,124 | 10,676 | 23,743 | 13,366 | 24,938 | 21,266 | 36,495 |
| Royalties and IP | 4,975 | 2,026 | 1,405 | 1,973 | 1,314 | 2,214 | 1,806 | 1,677 | 2,026 | 6,055 |
| Total revenues | 65,432 | 70,506 | 55,437 | 69,630 | 56,697 | 73,345 | 63,068 | 75,969 | 70,506 | 91,686 |
| Quarterly sales | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | |||||
| (vs previous year) | change reported | change at cst FX | change reported | change at cst FX | change reported | change at cst FX | change reported | change at cst FX | change reported | change at cst FX |
| 200-mm | +11.2% | +7.3% | +9.0% | +5.6% | +6.0% | +7.1% | +3.0% | +8.8% | +4.1% | +13.9% |
| 300-mm | +18.2% | +14.0% | +86.0% | +80.2% | +122.4% | +124.8% | +86.6% | +97.1% | +71.6% | +87.8% |
| Royalties and IP | -59.3% | -60.7% | +40.4% | +36.1% | +68.4% | +70,2% | -7.2% | -2.0% | +198.9% | +227.0% |
| Total revenues | +7.8% | +4.0% | +25.6% | +21.7% | +29.4% | +30.8% | +20.5% | +27.2% | +30.0% | +42.3% |
[1] The EBITDA represents the operating gain (EBIT) before depreciation, amortization, non-monetary items related to share-based payments, and changes in provisions on current assets and provisions for risks and contingencies. This indicator 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] Electronics EBITDA margin = EBITDA from continuing operations / Sales.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SOITEC via Globenewswire
