Soitec announces consolidated sales of 65.1 million Euros for Q3 2010-2011

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• Wafer sales stable vs Q2 at constant exchange
• Sequential growth around 20% anticipated for wafer sales in Q4 at constant exchange

Bernin, France, 17 January 2011– Soitec (Euronext Paris), the world’s leading supplier of advanced solutions for the microelectronics and energy industries, announced consolidated sales of 65.1 million Euros for the third quarter of the financial year 2010-2011.  Total wafer sales of 58.3 million Euros for the quarter were stable sequentially at constant exchange and down by 4.5% in Euros as the Dollar moved unfavourably by 5.3% against the Euro. For the first nine months of the financial year, total consolidated sales in Euros were up by 38.2% at 202.4 million. Strong sequential growth is anticipated for the fourth quarter.

Total wafer sales sequentially stable at constant exchange

As anticipated 300 mm sales regained momentum as final demand remained robust through the end of the calendar year. Q2 seasonal weakness in the PC market ended in the third quarter and 300 mm wafer sales were almost stable at constant exchange rate. In Euros, 300 mm wafer sales of 43.5 million (75% of total wafer sales), were sequentially down by 6.7%. Other diameter sales increased by 4.4% in Euros or by 13.2% at constant exchange thanks to the continuing rebound in the automotive sector combined with additional sales to the RF handset markets. Contribution from solar activity was not significant in the quarter (i.e. 0.8 million Euros).

Total wafer sales were 182.8 million Euros for year to date nine months, up by 22.9% at constant exchange and by 34.6% in Euros.

Third quarter contribution to consolidated sales from other activities, Picogiga, Tracit and licensing was 6.0 million Euros. Year to date nine months these activities, compared to the same period last year were up by 51.4% at 16.2 million Euros. Solar activity totalled 3.3 million Euros by the end of December.

Anticipated wafer sales sequential growth around 20% in Q4 at constant exchange

The most recent information from major customers points to a significant increase in demand driven by the ramp up of new products in coming quarters leading to sequential growth in wafer sales of around 20% at constant exchange for the fourth quarter. The turnaround in demand is confirmed for 300 mm and other diameter sales will continue to benefit from new markets opportunities in automotive and industrial applications or handset mobile phones and CFL lamps markets. Management is confident that Q4 2010-2011 shall be an inflexion point towards a significant upgrade of the wafer sales for the Group. The Group remains confident for the successful outcome of its solar farm project being developed in South Africa.

Agenda

Fourth-quarter sales for the financial year 2010-2011 will be published on 18 April 2011 after the closure of the Paris Bourse.

About Soitec

Soitec is the world's leading innovator and provider of the engineered substrate solutions that serve as the foundation for today's most advanced microelectronic products. The group leverages its proprietary Smart Cut™ technology to engineer new substrate solutions, such as silicon-on-insulator (SOI) semiconductor wafers, which became the first high-volume application for this proprietary technology. Since then, SOI has emerged as the material platform of the future, enabling the production of higher performing, faster chips that consume less power.
Today, Soitec produces more than 80 percent of the world's SOI wafers. Headquartered in Bernin, France, with two high-volume fabs on-site, Soitec has offices throughout the United States, Japan and Taiwan, and a new production site in Singapore.
Three other divisions – Picogiga International, Tracit Technologies and Concentrix Solar – complete the Soitec Group. Picogiga delivers advanced substrates solutions, including III-V epi wafers and gallium nitride (GaN) wafers, to the compound materials market for manufacturing high-frequency electronics and other optoelectronic devices. Tracit provides thin-film layer transfer technologies used to manufacture advanced substrates for power ICs and microsystems as well as generic circuit transfer technology, Smart Stacking™, for applications such as image sensors and 3D integration. In December 2009, Soitec acquired 80 percent of Concentrix Solar, the leading provider of concentrated photovoltaic (CPV) solar systems for the industrial production of energy. With this acquisition, Soitec has entered the fast-growing solar market. Shares of the Soitec Group are listed on Euronext Paris. For more information, visit: www.soitec.com.

Soitec, Smart Cut, Smart Stacking and UNIBOND are trademarks of S.O.I.TEC Silicon On Insulator Technologies.

International Media Contact

Camille Darnaud-Dufour
+33 (0)6 79 49 51 43
camille.darnaud-dufour@soitec.fr

Investor Relations

Olivier Brice
+33 (0)4 76 92 93 80
olivier.brice@soitec.fr

French Media Contact

Marie-Caroline-Saro, H&B Communication

+33 (0)1 58 18 32 44
mc.saro@hbcommunication.fr

News Source : Soitec announces consolidated sales of 65.1 million Euros for Q3 2010-2011