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SOITEC REPORTS FY’22 FIRST QUARTER REVENUE
SOITEC REPORTS FY’22 FIRST QUARTER REVENUE
Q1’22 revenue reached €180m, up 69% at constant exchange rates versus Q1’21
Performance was driven by strong growth in our three end markets: Mobile communications, Automotive & industrial, and Smart devices
FY’22 revenue guidance confirmed at around $950m (i.e. around €800m based on €/$ exchange rate of 1.2), up around 40% at constant exchange rates
FY’22 Electronics EBITDA1 margin2 still expected around 32%
Bernin (Grenoble), France, July 21st, 2021 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced consolidated revenue of 180.4 million Euros for the first quarter of FY’22 (ended June 30th, 2021), up 58.8% compared with 113.6 million Euros achieved in the first quarter of FY’21. This reflects the combination of a 69.0% growth at constant exchange rates and a negative currency impact of 10.2% (no change in perimeter).
On a sequential basis, first quarter revenue was up by 1.0% at constant exchange rates compared with the fourth quarter of FY’21, representing a fourth consecutive quarter-over-quarter organic revenue growth since the first quarter of FY’21.
Paul Boudre, Soitec’s CEO, commented: “In line with our expectations, this first quarter marks a solid start of our fiscal year 2022. We recorded a sequential organic revenue growth for the fourth consecutive quarter, a strong performance that was boosted by our 300-mm radiofrequency wafers, a confirmation of the automotive sector recovery and the ongoing ramp-up of our POI wafers dedicated to RF filters. In addition, we confirmed during this first quarter the rebound started in the previous fiscal year of our FD-SOI products. We are fully on track to meet our full-year guidance which is only the first step towards the strong growth ambitions we set ourselves for the next five years.
As highlighted in our recent Capital Markets Day, we are aiming to triple our revenue between fiscal year 2021 and fiscal year 2026 through growth in our three end markets - mobile communications, automotive and industry, as well as smart devices.
First quarter FY’22 consolidated revenue (unaudited)
Q1’21 | Q1’22 | Q1’22/Q1’21 | ||
(Euros thousands) | change reported | chg. at const. exch. Rates | ||
150/200-mm | 67,392 | 79,090 | +17% | +24% |
300-mm | 41,269 | 95,914 | +132% | +149% |
Royalties and other revenue | 4,961 | 5,422 | +9% | +12% |
Total revenue | 113,622 | 180,427 | +59% | +69% |
Soitec recorded a 69.0% total revenue increase at constant exchange rates in the first quarter of FY’22 compared to the first quarter of FY’21, with a solid performance across all types of products.
Soitec benefited from a strong growth in Mobile communications boosted by the ongoing adoption of 5G, which translated into higher sales of RF-SOI wafers dedicated to radiofrequency applications and POI wafers dedicated to RF filters.
Soitec also recorded a solid performance in Automotive & Industrial as evidenced by higher sales of Power-SOI wafers supporting the sustained recovery of the automotive market.
Compared to the first quarter of FY’21, Soitec also recorded an increase in revenue derived from Smart devices with higher sales of Imager-SOI wafers dedicated to 3D applications, Photonics-SOI wafers and FD-SOI wafers.
On a sequential basis, first quarter revenue was up by 1.0% at constant exchange rates compared with the fourth quarter of FY’21.
150/200-mm wafer revenue
150/200-mm wafers are mostly dedicated to radiofrequency applications and, for a smaller part, to power applications. In the first quarter of FY’22, 150/200-mm wafer revenue reached 79.1 million Euros, a 24% increase at constant exchange rates compared to the first quarter of FY’21 and an 8% increase at constant exchange rates compared to the fourth quarter of FY’21. This is reflecting a strong increase in volumes both in Bernin and in the production outsourced to our Chinese partner.
This increase was supported by:
Much higher Power-SOI wafer sales compared to the first quarter of FY’21 when the automotive market was hit by difficulties related to the Covid-19 outbreak, confirming the recovery already experienced in the fourth quarter of FY’21;
A sharp increase in POI (Piezoelectric-on-Insulator) wafer sales compared to the first quarter of FY21, benefiting from the ongoing ramp-up in POI production enabled by the extension of the dedicated 150-mm industrial capacity at Bernin. This illustrates the strong value proposition to smartphones’ 4G/ 5G RF filters brought by POI substrates.
RF-SOI 200-mm wafer revenue were stable compared to the first quarter of FY’21 but slightly up compared to the fourth quarter of FY’21. While RF-SOI content in radiofrequency applications keeps on increasing, this is mostly achieved through 300 mm wafers.
300-mm wafer revenue
In the first quarter of FY’22, 300-mm wafer sales reached 95.9 million Euros, a 149% increase at constant exchange rates, compared with the first quarter of FY’21. This is essentially resulting from a sharp volume increase. 300-mm wafer sales represented 55% of total wafer sales in the first quarter of FY’22 against 38% in the first quarter of FY’21.
300-mm wafer sales were also up by 2% at constant exchange rates compared to the fourth quarter of FY’21.
All 300-mm products increased in the first quarter of FY’22 compared to the first quarter of FY’21, with the major part of this growth coming from the strong increase recorded in RF-SOI 300-mm wafer sales mainly supported by ongoing deployment of the first generations of 5G smartphones.
First quarter of FY’22 FD-SOI wafer sales reached a much higher level than in the first quarter of FY’21. FD-SOI based offering should continue to benefit applications related to Edge Computing, Automotive and 5G.
In the first quarter of FY’22, sales of Imager-SOI wafers increased sharply compared to the first quarter of FY’21 and remained at a level close to the fourth quarter of FY’21. Imager-SOI allow 3D image sensing for facial recognition in smartphones as well as in AR/VR devices.
First quarter of FY’22 Photonics-SOI wafer sales for data centers were higher than in the first quarter of FY’21 and higher than in the fourth quarter of FY’21.
Royalties and other revenue
Total Royalties and other revenue reached 5.4 million Euros in the first quarter of FY’22 compared to 5.0 million Euros in the first quarter of FY’21. This represents a 12% growth at constant exchange rates which was essentially driven by Dolphin Design.
Key event of the quarter
Soitec unveiled its strategy for 2026
On June 10th, 2021, Soitec held its 2021 Capital Markets Day, unveiling its up-to-date vision of the development of the semiconductor market, along with its operational roadmap for harnessing the potential identified in Mobile communications, Automotive and Industry, and Smart devices. Soitec estimates that growth of its addressable markets over the next five years will continue to accelerate, from around three million substrates to over seven million substrates by 2026.
To support this growth and its strategic priorities, Soitec is considering a five-year capital expenditure program worth some 1.1 billion Euros. For FY’26, Soitec is targeting to triple its revenue as compared to FY’21 to reach approximately 2 billion US Dollars and an Electronics EBITDA1 margin2 of around 35% based on a Euro/US Dollar exchange rate of 1.20.
FY’22 Outlook
Soitec confirms expecting FY’22 revenue to reach around 950 million US Dollars. Based on a Euro/US Dollar exchange rate of 1.20, this represents revenue of 800 million Euros, a growth of around 40% at constant exchange rates.
Soitec also confirms expecting FY’22 Electronics EBITDA1 margin2 to reach around 32%.
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Analysts conference call to be held in English on Thursday 22nd July at 8:00 am CET
To listen this conference call, the audiocast is available live and in replay at the following address: https://channel.royalcast.com/soitec/#!/soitec/20210722_1
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Agenda
Soitec’s Annual General Meeting will be held on July 28th, 2021.
Q2’22 revenue is due to be published on October 20th, 2021 after market close.
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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 2020-2021 Universal Registration Document (which notably includes the 2020-2021 Annual Financial Report) which was filed on July 5, 2021 with the French stock market authority (Autorité des Marchés Financiers, or AMF) under number D.21-0681. The French version of the 2020-2021 Universal Registration Document and an English courtesy translation for information purposes are both 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 of the Company’s 2020-2021 Universal Registration Document.
This document contains summary information and should be read in conjunction with the 2020-2021 Universal Registration 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 2.1 of the 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 40 Paris) is a world leader in the manufacture of innovative semiconductor materials. The company uses its unique technologies to serve the electronics markets. With more than 3,500 patents worldwide, Soitec’s strategy is based on disruptive innovation to meet its customers’ needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the United States 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: | Media contacts: |
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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 € 66,819,446.00, 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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Appendix
Consolidated revenue (Q1’22 unaudited)
Quarterly revenue | Q1 | Q2 | Q3 | Q4 | Q1 | |||||
(Euros thousands) | ‘20 | ‘21 | ‘20 | ‘21 | ‘20 | ‘21 | ‘20 | ‘21 | ‘21 | ‘22 |
150/200-mm | 59,469 | 67,392 | 61,957 | 71,029 | 61,885 | 64,762 | 91,623 | 74,193 | 67,392 | 79,090 |
300-mm | 53,832 | 41,269 | 71,504 | 63,877 | 65,133 | 76,655 | 103,895 | 94,850 | 41,269 | 95,914 |
Royalties and other revenue | 6,135 | 4,961 | 5,555 | 5,848 | 8,264 | 7,260 | 8,299 | 11,666 | 4,961 | 5,422 |
Total revenue | 119,435 | 113,622 | 139,015 | 140,754 | 135,282 | 148,678 | 203,817 | 180,708 | 113,622 | 180,427 |
Quarterly revenue | Q1’21 | Q2’21 | Q3’21 | Q4’21 | Q1’22 | |||||
(vs. previous year) | change reported | chg. at const. exch. rates and perimeter1 | change reported | chg. at const. exch. rates and perimeter1 | change reported | chg. at const. exch. rates and perimeter1 | change reported | chg. at const. exch. rates and perimeter1 | change reported | chg. at const. exch. rates and perimeter1 |
150/200-mm | +13.3% | +13.1% | +14.6% | +17.2% | +4.6% | +9.1% | -19.0% | -14.4% | +17.4% | +24.2% |
300-mm | -23.3% | -23.5% | -10.7% | -8.6% | +17.7% | +23.3% | -8.7% | -2.9% | +132.4% | +148.9% |
Royalties and other revenue | -19.1% | -22.1% | +5.3% | +5.9% | -12.1% | -11.0% | +40.6% | +42.3% | +9.3% | +12.0% |
Total revenue | -4.9% | -5.2% | +1.3% | +3.5% | +9.9% | +14.7% | -11.3% | -6.2% | +58.8% | +69.0% |
1 At constant exchange rates and comparable scope of consolidation:
In Q1’21, scope effects relate to the acquisition of Soitec Belgium (formerly EpiGaN) in May 2019
There is no scope effect in Q2’21, Q3’21, Q4’21 and Q1’22
Soitec Belgium revenue is included in the segment Royalties and other revenue.
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1 The EBITDA represents the operating income (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, excluding income on asset disposals. 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 Electronics EBITDA margin = EBITDA from continuing operations / Revenue.
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