Soitec Reports High Growth in Q1 2006-2007 and record sales of 85.7 million Euros
• Q1 Sales – 85.7 million Euros and year-on-year growth of 67%
• Wafer sales sequential growth of 15% at constant exchange rate
• Guidance for sales and positive operating leverage confirmed
Bernin, France, July 17, 2006 – Soitec (Euronext Paris), the leading manufacturer of silicon-on-insulator (SOI) wafers and other engineered substrates, today announced consolidated sales of 85.7 million Euros for the first quarter of its financial year 2006-2007 which represents year-on-year growth of 67.1% and is consistent with the company’s existing guidance. Sales for the quarter set another record level, again illustrating the continuing adoption of SOI by the semiconductor industry. SOI wafer sales recorded sequential growth of 10.8% in total and 14.5% at constant exchange rates.
| Sales (Euros millions) | 2006-2007 | 2005-2006 | Growth |
| First Quarter | 85.7 | 51.2 | +67.1% |
300mm SOI Wafer Adoption Continues to Drive Record Sales
SOI wafer sales were 82.2 million Euros in the quarter, a year on year growth of 67.0% or 62.8% at constant exchange rates. This performance was predominately driven by very strong 300mm volumes showing sales growth of 109.6% over the previous year and representing 67% of total wafer sales. Other wafer sizes, notably 200mm, also provided robust growth of 17.7%. These trends continue to validate Soitec’s strategic investments in production capacity to meet rising demand —as evidenced by the installation of two more 300mm lines earlier this year.
Picogiga sales and licensing revenues complete the Group’s total consolidated sales. Picogiga’s traditional market for RF applications contributed to sales growth with a very strong year-on-year increase of 110.6% to 2.7 million Euros. Licensing revenues were stable at 0.8 million Euros for the quarter.
Positive Outlook
SOI demand continues to gain momentum across the semiconductor industry both for high performance low power advanced micro processors but also in the foundries with new applications such as game consoles and media rich content products for both the business computing and the mass consumer markets. The Group is confident of outperforming forecasted market growth and confirms its guidance for full year consolidated sales to be about 400 million Euros at the current exchange rates. This anticipated sales growth is supported by the renewal of contractual commitments with its major customers and will be accompanied by an improvement to the Group’s income resulting from operating leverage.
Recent Developments
Soitec has recently reported that in order to support Grenoble-based TraciT Technologies and increase production capacity, the company has purchased 1,300 square meters of equipped clean room space located adjacent to Soitec’s Bernin facility. This also provides facilities for the strategic R&D investment project NanoSmart, a partnership between Soitec and CEA Léti..
Following on from the strategic announcement and capital increase in March, the Group announced the selection of an industrial site in Singapore as the location for its future 300-mm SOI wafer fab. The timing of the construction is as previously announced with production planned to start in mid-2008 and with full capacity expected to be one million wafer starts per year.
Reporting Calendar
Q2 sales for 2006-2007 will be published on 16th October 2006 after the close of the Paris Stock Exchange.
About The Soitec Group: The Soitec Group is the world’s leading innovator and provider of the engineered substrates that serve as the foundation for today’s most advanced electronic products and nanotechnologies. Headquartered in Bernin, France, the company manufactures its comprehensive portfolio of engineered substrates, including silicon-on-insulator (SOI) and strained SOI (sSOI), using Soitec’s proprietary Smart Cut™ technology—the de facto industry standard. With its strong global presence, patented technology and industry-leading production capacity, Soitec is helping to drive the performance and power advantages that are key to the smaller, more power efficient, and increasingly mobile electronic products favoured by consumers worldwide. Both shares and convertible bonds are listed on Euronext Paris.
Soitec, Smart Cut and UNIBOND are trademarks of S.O.I.TEC Silicon On Insulator Technologies
For further information, please contact:
Iain Murray
Chief Financial Officer
Tel: +33 4 76 92 75 14
Email: investors@soitec.fr
Olivier Brice
Investor Relations – Financial Communication
Tel: +33 4 76 92 93 80
Email: olivier.brice@soitec.fr