PARIS — Silicon-on-insulator (SOI) wafer supplier Soitec SA (Bernin, France) announced that its sales dropped by 32.3 percent, to 65.7 million euros, for the fourth quarter of fiscal year 2007-2008, and by 19.8 percent, to 298.2 million euros, for the full fiscal year.
These results came as no surprise. In a press conference in February, Andr-Jacques Auberton-Herv, chairman and CEO of Soitec, indeed warned that for the fourth quarter sales would decrease by 20 percent on a sequential basis. He commented: "A slowdown in the company's activities will have a negative impact on the margins, resulting in a 3-percent operating loss of total sales for fiscal year 2007-2008. Total sales for the full year are expected to amount to 296 million euros. The second half of the year will be more stable than the first half."
Soitec explained that the downward trend in sales in the fourth quarter stems from "the continuing weak demand and the absence of a favorable impact from the launch of new products by major customers."
Actual demand from the company's two main customers, namely Advanced Micro Devices, Inc. and IBM Corp., that is covered by the contractual minimum quantities is indeed running behind schedule by around 14 percent. AMD, IBM, Freescale, NXP and Chartered Semiconductor Manufacturing account for 85 percent of Soitec's business, indicated Auberton-Herv.
For the full year, Soitec said wafer sales fell to 286.0 million Euros, down by 20.3 percent or 13.1 percent at constant exchange. Its sales of 300-mm SOI wafers represented 72.3 percent of total wafer sales.
Licensing revenues contributed 4.0 million euros for the financial year. And, while Tracit doubled sales 2.1 million euros, Picogiga recorded sales of 6.1 million euros, down by 30 percent on a year-on-year basis.
Soitec confirmed its guidance for a full year operating loss of about 3 percent of sales.
For fiscal year 2008-2009, Soitec said it maintains its conservative scenario. For the first half, the company indeed said it anticipates a continuing weak demand and an anticipated decrease on a sequential basis in the first quarter.
Soitec said it expects to improve operational performance and reducing costs, "without jeopardizing the ability to take full advantage of a future recovery." The company also maintains its objective of improving operating performances.
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