Soitec Group today announced total consolidated sales of 48.0 million Euros for the third quarter up by 45.0% on a yearly basis. On January 16th, 2015, the Board of Directors unanimously decided to immediately implement a strategic plan which aims to re-focus Soitec activities on its core electronics business.
Third quarter Electronic segment reported a 36.3% revenue increase on a yearly basis with sales of 44.3 million Euros. Trends reported for H1 sales remain unchanged. Markets dedicated to mobility and smart phones continued to deliver growth leading to improved revenue diversification. Excluding favorable exchange rate impact, 200 mm wafer sales almost doubled to 29.4 million Euros compared to 15.1 million Euros last year and represented 75.6% of total wafer sales. 300 mm wafer sales were up by 16.1% at constant exchange rate and totaled 10.3 million Euros. Licensing revenues were 0.8 million Euros and Equipment sales (i.e. Altatech) were 1.3 million Euros in the quarter.
For the first 9 months electronic segment reported consolidated revenues down by 7.1% at 113.8 million Euros. Compared to the nine months of last year, 200 mm wafer sales were up by 56.0% at 78.1 million Euros (53.4% at constant exchange rate) and represented 73% of total wafer sales. 300 mm wafer sales decreased by 33.8% compared to the same period last year. Licensing revenues were 2.6 million Euros over the period and Equipment sales totalled 2.0 million Euros. The Solar Energy division reported 3.4 million Euros in the third quarter and 38.6 million Euros over the 9 months period.
Electronic sales for the fourth quarter of the 2014-2015 financial year are expected to be around 65 million Dollars continuing to benefit from growth for markets related to mobility such as smart phones, as well as automotive. RFSOI demand for smart phone will continue to grow with market expending 30% on annual basis and 28 nm FDSOI is anticipated to start initial ramp with foundry customers in 2nd half of 2015. Majority of Soitec Electronic business is today covered by several long term contracts.
On January 16, 2015, the Board of Directors unanimously decided to immediately implement and support a strategic plan which aims to re-focus Soitec activities on its core electronics business. Soitec has initiated efforts to realize value of solar energy business combining significant restructuring measures going forward and will assess most appropriate scenario to extract value from its solar related assets in compliance with its obligations towards all solar stakeholders.
As a consequence of the recast of the anticipated Solar Energy sales Soitec has triggered a first batch of cost cutting actions freezing or cancelling many operating charges and reducing headcount by around 100 people in the United States. Further cost cutting measures will be implemented in accordance with firm anticipated short term demand as well as appropriate restructuring measures.
By the end of December 2014, unaudited cash resources amounted to 28.4 million Euros. Following recent successful full commissioning of its Touwsrivier plant in South Africa, the Group is anticipating to collect up to 40 million Euros in the coming months.
Additionally, Soitec has signed a 2 years Standby Equity Facility (SEF) with Societe Generale. Societe Generale has committed to subscribe, upon Soitec's request, to newly issued shares in successive tranches over the next 24 months, within a global limit of 22,000,000 shares (9.8% of the share capital). Should the entire standby equity facility be drawn down, a shareholder currently owning 1% of the company's share capital would see its share ownership reduced to 0.91%.
For each tranche, the issuance price will reflect the volume-weighted average price of shares for the three trading days preceding the issue date, minus a discount of no more than 5%. This discount will enable Societe Generale to underwrite the share issuance despite potential market volatility.
The Group reiterates that its current operating loss will not be significantly reduced in H2 compared to H1. It is further anticipated that a significant impairment charge shall be recorded in H2 FY14-15 in order to reflect solar scenario outcome and restructuring measures implemented.
Strategic re-focus on core Electronics business is accompanied with a change of governance consistent with the 2013 AFEP –MEDEF Corporate Governance Code of Listed Companies. The role of Chairman of the Board and Chief Executive Officer are getting split. Paul Boudre is becoming Chief Executive Officer. Boudre was COO since June 2008 and focused in restructuring and developing the Electronic business over last years. André Jacques Auberton Hervé will remain Chairman of the Board.
