SOITEC REPORTS FY’24 THIRD QUARTER REVENUE
- Q3’24 revenue reached €240m, down 12% at constant exchange rates and perimeter compared with Q3’23 - in line with our expectations
- Inventory correction by our direct customers continued to weigh on Mobile communications
- Strong growth maintained in Automotive & Industrial and sequential rebound achieved in Smart devices revenue
- First nine months of FY’24 revenue reached €641m, down 14% both on a reported basis and at constant exchange rates and perimeter
- FY’24 revenue guidance revised: revenue expected to be down around 10% year-on-year at constant exchange rates and perimeter, and EBITDA1 margin22around 34%.
- Our
$2.1bn revenue ambition initially modeled for FY’26, will be postponed by around one year due to a weaker smartphone market than previously expected
Bernin (Grenoble),
We anticipate to continue to face challenging market dynamics on RF-SOI for another couple of quarters. While confirming that we expect a solid Q4’24, we are adjusting our revenue guidance for the full-year, with an organic decline of around 10% year-on-year and an EBITDA margin forecast of around 34%. Expansion into new products remains a key pillar of our strategy, and we are very satisfied with the successes we have achieved.
In
On SmartSiCTM, our roadmap is on track on all aspects: technology, industrial, supply and commercial. We have secured a second customer, with production scheduled to start in the second part of calendar year 2024.
The ongoing deployment of our strong megatrends across our three strategic end markets and our expanding product portfolio support our sustainable growth story. We now expect our
Third quarter FY’24 consolidated revenue (unaudited)
Q3’24 | Q3’23 | Q3’24/Q3’23 | ||
(Euros millions) | change reported | chg. at const. exch. rates & perimeter | ||
Mobile communications | 130 | 170 | -23% | -23% |
Automotive & Industrial | 44 | 37 | +20% | +21% |
Smart devices | 65 | 67 | -4% | -3% |
Total revenue | 240 | 274 | -13% | -12% |
After the sharp 56% sequential growth excluding currency impact achieved in the second quarter of FY’24 (compared to the first quarter of FY’24), third quarter revenue was almost flat compared to the second quarter of FY’24, at 240 million Euros.
On a year-on-year basis, third quarter revenue recorded a 12% decline at constant exchange rates and perimeter against the third quarter of FY’23. This decrease reflects a negative mix effect as well as an unfavorable volume impact, which came as a result of mixed performances across Soitec’s three end markets: in particular, volumes were lower in Mobile communications but higher in Automotive & Industrial.
Mobile communications
In the third quarter of FY’24,
Despite some early signs of recovery in the global smartphone market and a growing penetration of high-end smartphones, inventory adjustments across the supply chain continued to weigh on RF-SOI revenue in the third quarter of FY’24, as evidenced by lower volumes compared to the third quarter of FY'23.
This year-on-year decrease in RF-SOI sales was, however, partly offset by:
- significantly higher sales of FD-SOI, designed to equip front end modules integrated in both 5G Sub-6 GHz and 5G mmWave smartphones,
- strong growth in POI (Piezoelectric-on-Insulator) sales, which benefited from higher volumes from both existing and new customers using Soitec’s POI technology for RF filters in 5G smartphones.
Automotive & Industrial
Automotive & Industrial revenue reached
As this has been the case for several quarters, third-quarter Power-SOI sales showed significant year-on-year growth, essentially driven by higher volumes. Power-SOI address growing demand for infotainment, functional safety and Battery Management Systems.
FD-SOI sales continue to benefit from adoption for automotive microcontrollers.
Contribution from revenue generated by Soitec’s SmartSiCTM technology dedicated to the future generations of electric vehicles has further increased compared with the first half of FY’24. Inaugurated last September, Soitec’s new plant dedicated to SmartSiC™ substrates is expected to ramp-up in FY’25.
Smart Devices
Smart Devices revenue reached
Sales of FD-SOI continue to be supported by structurally growing demand for Edge Computing devices across consumer and industrial sectors. Revenue reached a much higher level than in the first two quarters of FY’24.
After low sales in the first two quarters of FY’24, sales of Imager-SOI for 3D imaging applications, recorded a strong rebound in the third quarter of FY’24 and were much higher than in the third quarter of FY’23.
Conversely, in the third quarter of FY’24, sales of Photonics-SOI were lower than in the third quarter of FY’23, impacted by a more challenging data center environment in 2023.
First nine months FY’24 consolidated revenue (unaudited)
9m’24 | 9m’23 | 9m’24/9m’23 | ||
(Euros millions) | change reported | chg. at const. exch. rates & perimeter | ||
Mobile communications | 388 | 510 | -24% | -24% |
Automotive & Industrial | 119 | 94 | +27% | +27% |
Smart devices | 133 | 140 | -5% | -5% |
Total revenue | 641 | 745 | -14% | -14% |
Overall, consolidated revenue reached
FY’24 outlook
FY’24 revenue guidance is revised: revenue is expected to be down around 10% year-on-year at constant exchange rates and perimeter as opposed to a mid-single digit decrease previously expected, and EBITDA4 margin5 at around 34% as opposed to around 35%.
FY’26 financial model
Going forward,
In the current challenging environment, the RF-SOI inventory correction across the value chain is longer than expected. In this context, while the ambition of a
The Group continues to leverage powerful megatrends across its three strategic end markets to address a growing number of customers with its expanding product portfolio. The rebound in RF-SOI, the increasing penetration of other SOI products (FD-SOI, Power-SOI and Photonics-SOI), and the successful expansion into Compound engineered substrates (POI, SmartSiCTM, and GaN) support its sustainable growth story.
Post closing events
In
On
At the same time,
Signature of IPCEI 2 grant contract
On
This funding will mainly be used to support Research & Development and will contribute to the ramp-up of the Bernin 4 (SmartSiC™) and Bernin 3 (POI) factories.
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Analysts conference call to be held in English on Thursday 8th February at
To listen this conference call, the audiocast is available live and in replay at the following address: https://channel.royalcast.com/soitec/#!/soitec/20240208_1
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Agenda
Q4’24 revenue and FY’24 results are due to be published on
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Disclaimer
This document is provided by
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
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
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.
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Notably, this document does not constitute an offer or solicitation to purchase, subscribe for or to sell securities in
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About
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: +33 6 42 37 54 17 isabelle.laurent@oprgfinancial.fr +33 6 14 08 29 81 fabrice.baron@oprgfinancial.fr |
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Appendix
Consolidated revenue per quarter (Q3’24 unaudited)
Quarterly revenue | Q1’23 | Q2’23 | Q3’23 | Q4’23 | Q1’24 | Q2’24 | Q3’24 | 9m’23 | 9m’24 | |
(Euros million) | ||||||||||
Mobile communications | 152 | 189 | 170 | 220 | 89 | 169 | 130 | 510 | 388 | |
Automotive & Industrial | 23 | 34 | 37 | 47 | 37 | 38 | 44 | 94 | 119 | |
Smart devices | 28 | 45 | 67 | 77 | 31 | 37 | 65 | 140 | 133 | |
Total revenue | 203 | 268 | 274 | 344 | 157 | 245 | 240 | 745 | 641 |
Change in quarterly revenue | Q1’24/Q1 23 | Q2’24/Q2’23 | Q3’24/Q3’23 | 9m’24/9m’23 | |||||
Reported change | Organic change1 | Reported change | Organic change1 | Reported change | Organic change1 | Reported change | Organic change1 | ||
(vs. previous year) | |||||||||
Mobile communications | -42% | -43% | -10% | -9% | -23% | -23% | -24% | -24% | |
Automotive & Industrial | +60% | +57% | +12% | +13% | +20% | +21% | +27% | +27% | |
Smart devices | +12% | +10% | -18% | -17% | -4% | -3% | -5% | -5% | |
Total revenue | -23% | -24% | -9% | -7% | -13% | -12% | -14% | -14% |
- At constant exchange rates and comparable scope of consolidation (there was no scope effect in Q1’24, Q2’24 and Q3’24)
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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
3 There was no scope effect, neither in Q3’24 nor in 9m’24
4 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
5 EBITDA margin = EBITDA from continuing operations / Revenue
Attachment
- Soitec Q3'24 revenue VUK
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