Elettronica
SOITEC : SOITEC ANNOUNCES HALF-YEAR RESULTS FOR 2014-2015
- Soitec (Euronext), world leader in generating and manufacturing high performance semiconductor materials for electronics and energy, announced today its unaudited consolidated results for the first six months of its 2014-2015 financial year.
In the first half of the year, the Group posted consolidated sales of 106.0 million Euros, up 16.5% compared to the first six months of last year, taking into account an unfavorable 1.6% decrease in the dollar / euro exchange rate. The Group posted a current operating loss of 74.4 million Euros the first half of the year. After write-down of assets, impairment charges, restructuring expenses and net financial income, the net first half year result (Group share) shows a loss of 82.9 million Euros against a loss of 160.0 million Euros in the first half of 2013-2014.
Operating cash flow was positive at 24.6 million Euros mainly due to received payments from major solar project in South Africa amounting to 60.0 million Euros.
The Group's cash available resources amounted to 43.9 million Euros at the end of September 2014, almost unchanged compared to 44.7 million Euros at the end of March 2014. Net financial debt has been significantly reduced to 135.8 million Euros compared to 212.2 million Euros at the end of March.
*of which 18.8 million Euros for Electronic Segment and 50.5 million Euros for Solar Energy Segment
**of which 1.5 million Euros for Electronic Segment and 8.4 million Euros for Solar Energy Segment
The Group operates under three segments: Electronic, Solar Energy and Lighting. It has elected to report corporate headquarters support functions within "Other segment".
Digital sales for the first half were down by 46.6% at 18.1 million Euros on a year-on-year basis. Other electronic sales were slightly down by 1.8% at 46.7 million Euros. Licensing and Equipment sales were 1.8 million Euros and 0.7 million Euros for the half year, respectively. Sales related to disposed AsGA activities were 2.3 million Euros over the half year..
Reported gross margin came from 1.6 million Euros (1.8% of sales) in the first half 2013-2014 to 2.5 million Euros (3.6% of sales) in the first half 2014-2015 despite the sales decline and low current capacity utilization.
Net Research and development totaled 6.5 million Euros, or 9.4% of sales, compared to 5.3 million Euros for the first half-year of 2013-2014 or 5.9% of sales. Compared to first half last year, SG&A costs were reduced by 24% at 7.9 million Euros.
Current operating margin remains negative at 12.0 million Euros compared to a loss of 14.1 million Euros for the first half of last year.
For the first half Solar sales totaled 35.2 million Euros out of which 24.0 million Euros relate to the major South African project. Gross profit includes inventory provision up to 10.6 million Euros as several commercial contracts have not been finalized yet. R&D efforts dedicated to the development and commercialization of a next generation high efficiency solar cell continue to develop and Soitec is anticipating to release soon a new world record in conversion efficiency of its proprietary four junction solar cell.
The current operating loss increased from 50.6 million Euros to 53.5 million Euros. A total non current charge of 14.4 million Euros has been recorded relating to impairment but partially offset by capital gain on the acquisition of Optical Technology, prior joint venture with Reflexite Industries, dedicated to Fresnel lenses used in Soitec CPV technology.
The lighting segment was created as the R&D costs to support the Group's strategic positioning on Lighting markets became significant. Current efforts are focused on developing advanced substrates to address the future high growth market of solid state lighting.
Current operating loss increased from 1.8 million Euros to 4.2 million Euros, which included 3.9 million Euros in R&D subsidies last year compared to 1.6 million Euros this year.
The Other segment represents general corporate support functions.
In the first half-year, total negative EBITDA was (36.8) million Euros out of which Solar Energy division accounted to (29.0) million Euros. The cash flow generated from operations was positive at an amount of 24.6 million Euros but included 60.0 million Euros allocated to working capital payments from the South African project.
Without significant investments, net cash flow devoted to investment strongly decreased from 116.0 million Euros to 15.0 million Euros.
The Group had at its disposal at the end of September 2014 cash available resources amounting to 43.9 million Euros after successfully completing a capital increase and convertible reimbursement. Net cash position stated at (135.8) million Euros compared to (212.2) million Euros end of March 2014.
Recent announcements concerning fully-depleted SOI-based opportunities from STMicroelectronics, Samsung Foundry or GlobalFoundries demonstrate the positive momentum for Soitec's technological solutions, but needs to translate into mass adoption by fabless chip suppliers in order to generate sufficient revenue for Soitec, directly or from royalties paid by its licensees.
Short term visibility remains limited to the second half of the current financial year and Electronic Division confirms full year sales guidance to be flat compared to last year. This limited visibility for digital sales outlook will be partially offset by the strong continuous adoption of Soitec technologies for RF and mobility applications.
In the second half, strong sequential growth guidance for solar revenue remains linked to the ramp up of San Diego facility in relation with anticipated green light for triggering the 150 MW recent commercial agreement signed with a US Independent Power Producer. After confirmation, this agreement will trigger revenue recognition accordingly with the Equipment Supply Agreement to be signed with the EPC company. As already stated, failing which such green-light shall not allow to record sales revenue in H2. Based on current time line and potential shift in closing transactions, contributions from the 150 MW contract or other current projects could be postponed and are not totally secured to have a significant revenue contribution for the Solar Energy division until the end of the current fiscal year. The Group is carefully monitoring any specific milestones which could negatively impact the implementation of its projects or should not satisfy the ultimate commissioning dates attached to them.
Based on the anticipated growth scenario from its Electronic and Solar Energy divisions the Group confirms it is on track to achieve Soitec 2015 objective to return to positive Ebit margin over 2015-2016 financial year.
The Group anticipates that its consolidated results for the full-year 2014-2015 will show EBIT margin remaining negative. Based on most updated forecast total available cash resources over the next 12 months should be improved but should remain below 100 Million Euros. The group continues to pursue opportunities for increasing its liquidity position from asset monetization and other well suitable financing transaction which should support its development.
Half year management report shall be available on Soitec's web site on November 24 .
The sales for the third quarter of the 2014-2015 fiscal year will be published on January 19, 2015, after the closing of the Paris stock exchange.
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Soitec (Euronext Paris) is an international manufacturing company, at the heart of generating and manufacturing extreme performance semiconductor materials. Soitec's products encompass substrates for micro and nanoelectronics (most notably SOI : Silicon On Insulator) and concentrating photovoltaic systems (CPV), and company's core technologies Smart Cut(TM), Smart Stacking(TM) and Concentrix(TM), as well as expertise in epitaxy make it a world leader. Soitec delivers enhanced performance and energy efficiency to a broad range of applications including consumer and mobile electronics, telecommunications, automotive electronics, lighting products and solar power plants for large scale utilities. Soitec has manufacturing plants and Research and Development centers in France, Singapore, Germany, and the United States.
For more information, visit www.soitec.com .
Olivier Brice
+33 (0)4 76 92 93 80
olivier.brice@soitec.com
Marylen Schmidt
+33 (0)6 21 13 66 72
marylen.schmidt@soitec.com
Copyright GlobeNewswire
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