News Article
SOITEC posts larger than expected loss
Soitec (Euronext), has announced its audited consolidated results for the first six months of its 2012-2013 financial year.
In the first half of the year, the Group posted consolidated sales of 130.2 million Euros, down 19.9% compared to the first six months of last year, taking into account an increase of 12.7% in the dollar / euro exchange rate. The significant decrease in 300 mm wafers demand, the acceleration in the Research and Development efforts and the strengthening of the Solar activities to meet the new strategic challenges have led to a current operating loss of 70.2 million Euros against an operating loss of 8.5 million Euros in the first six months of last year.
After asset write-offs, an impairment charge and net financial expenses, the net first half-year result (Group share) shows a loss of 132.3 million Euros against a loss of 12.9 million Euros in the first half of 2011-2012. Operating cash flow was negative at 37.4 million Euros, which is close to the EBITDA at -37.9 million Euros mainly attributable to electronic related inventories being decreased to adjust to reduced demand. The Group's cash resources amounted to 131.0 million Euros at the end of September 2012.
Solar Energy sales are marginal as this segment is still in the development phase. Significant investments have been made in the Solar Energy segment to support the industrial ramp up in Freiburg and San Diego with an annual total capacity of 210 MWp. R&D efforts dedicated to the future high efficiency solar cell have also been strengthened to meet expected targets.
The increase in SG&A costs relates mainly to the reinforcement of the marketing efforts and skills to capture further sales such as those recently recorded in Italy and develop new opportunities in high irradiance areas like one in South Africa.
The current operating loss increased from 17.5 million Euros to 40.0 million Euros. A total non current charge of 5.0 million Euros has been recorded relating to the Gen IV tool set write-off in Freiburg, as the fourth generation solar systems have now been successfully replaced by the fifth generation (Gen V).