Semiconductor materials maker Soitec on Wednesday reported a lower EBITDA margin for its 2023-2024 fiscal year, citing an inventory correction in RF-SOI (silicon-on-insulator substrates applied to radio frequency) across the smartphone value chain.

The Group reported an EBITDA margin of 34% for the year ended March 31, compared with 37% a year earlier.

Full-year sales fell to 978 million euros, down 10% on a like-for-like basis.

"Regarding the 2024-2025 fiscal year, the RF-SOI inventory correction will continue to impact our sales during the first part of the fiscal year," said Soitec CEO Pierre Barnabé, quoted in a release.

He did, however, point to signs of improvement down the value chain, with the return to growth of the smartphone market.

Soitec confirmed its targets for the 2024-2025 financial year, and said it still expected a 15% year-on-year fall in sales in the first half of 2024-2025, as announced last March.

(Written by Diana Mandiá)