Soitec announces second quarter financial results for fiscal year 2021, with revenue reaching €141 million

Soitec, a world leader in the design and manufacture of innovative semiconductor materials, announced on October 21 its results for the second quarter of fiscal year 2021 (ending September 30), with consolidated revenues of €140.8 million, an increase of 1.3% (+3.5% at constant exchange rates and B1) compared to €139 million in the same period of fiscal year 2020. Sales in the second quarter of fiscal year 2021 increased by 27.1% (at constant exchange rates and B1) compared to the first quarter.

Since the outbreak of the pandemic, Soitec has maintained normal operation of all its production equipment, continued to supply products to customers, promoted the progress of all key R&D projects according to the product roadmap, and expanded the production capacity of 150-mm wafers at its Benin III plant in France.

Revenues for the second quarter of fiscal year 2021 amounted to €141 million, up 3.5% compared to the same period of fiscal year 2020

At constant exchange rates and borders1, turnover in the first half of 2021 was €254 million, stable compared to the first half of 2020

Sales are expected to remain stable in FY21, with an EBITDA margin of around 30% for the Electronics business at constant exchange rates and borders1

Paul Boudre, Soitec’s CEO, said: “The second quarter of fiscal 2021 was good and we are on track to achieve our full-year organic sales target. As expected, revenue rebounded after the first quarter and solid growth is expected in the second half of the year.

Our sales continued to grow, driven by increased demand for RF-SOI due to the deployment of 4G and 5G cellular networks. In addition, demand for POI substrates used specifically for RF filters also grew.

Finally, we are pleased with the recent successful issuance of our convertible bonds. This demonstrates investor confidence in our business model and prospects. The funds raised from the bond issuance will give us greater flexibility and better preparation to seize potential growth opportunities at any time.”

Sales performance in the second quarter of fiscal 2021 was more diverse compared to the same period in fiscal 2020. RF-SOI wafers dedicated to smartphone RF applications achieved a slight increase; while sales of Power-SOI and FD-SOI wafers dedicated to the automotive and IoT/consumer end markets declined; OtherSpecialty-SOI products (Imager-SOI and Photonics-SOI) both performed well; while POI wafers dedicated to smartphone RF filters achieved strong growth.

150/200-mm wafer sales

150/200-mm wafers are mainly optimized substrates for RF and power applications. In the second quarter of fiscal year 2021, sales of 150/200-mm wafers increased by 17% compared with the same period of fiscal year 2020 at a constant exchange rate. The increase in sales is mainly due to further optimization of the product portfolio, and is also driven by sales volume growth. Among them, sales of 200-mm RF-SOI wafers achieved strong growth due to the increase in RF-SOI content in RF applications. At the same time, Power-SOI wafer sales declined due to the impact of the automotive market during the epidemic.

Production of 150-mm POI (Piezoelectric On Insulator) wafers for RF filters continues to increase at the Benin III facility. Soitec’s POI substrates bring significant value to smartphone 4G/5G filters. 150/200-mm wafers increased 8% sequentially (at constant exchange rates) compared to the first quarter of fiscal 2021.

300-mm wafer sales

In the second quarter of fiscal 2021, 300-mm wafer sales decreased by 9% (at constant exchange rates) compared with the same period of fiscal 2020, reflecting a slightly lower volume and the need for further optimization of the product mix. Sales of 300-mm RF-SOI wafers remained at a high level, supported by the continued growth of the 4G market and the deployment of the first generation of 5G smartphones.

As was the case in the first quarter of fiscal 2021, sales of FD-SOI wafers were lower in the second quarter than in the previous year. However, design and development activities remained active, especially in applications related to 5G, edge computing and automotive.

Sales of other 300-mm products (Imager-SOI for 3D applications in smartphones and Photonics-SOI for data centers) remained relatively strong. Compared with the first quarter of fiscal 2021, 300-mm wafer sales increased by 59% quarter-on-quarter (at constant exchange rates).

Royalties and other operating income

In the second quarter of fiscal year 2021, royalties and other income totaled €5.8 million, compared to €5.6 million in the same period of fiscal year 2020 (up 6% at constant exchange rates and borders1).

In the first half of fiscal year 2021, Soitec revenues reached €254.4 million, almost flat compared to the same period in fiscal year 2020 (-0.4% at constant exchange rates and Boundary 1). Compared to the first half of fiscal year 2020, 200-mm wafer sales increased by 15%, while 300-mm wafer sales decreased by 15%. (At constant exchange rates)

Fiscal Year Outlook

Soitec expects sales to remain stable in fiscal 2021 at constant exchange rates and borders, and an EBITDA margin of around 30% for its electronics business.

Notes:

[1] At constant exchange rates and comparable consolidation scope; scope effects apply only to the first quarter; related to the acquisition of EpiGaN NV in May 2019; no scope effects in the second quarter; EpiGaN NV was renamed Soitec Belgium NV in July 2020; its revenue is included in the Royalties and other income segment.

[2] EBITDA is defined as operating income (EBIT) for the period before depreciation, amortization, non-monetary items related to share-based payments, changes in the provision for current assets and changes in the provision for risks and contingencies, and excluding proceeds from asset disposals. This alternative performance measure is a non-IFRS quantitative measure of a company's ability to generate cash from its operating activities. EBITDA is not defined by IFRS standards and should not be considered an alternative to any other financial measure.

[3] EBITDA margin for Electronics business = EBITDA from continuing operations/sales.