Soitec Reports First Quarter Sales Decline Amid Market Weakness
Soitec's First Quarter Sales Overview
(Reuters) -French semiconductor materials supplier Soitec reported a 16% drop at constant exchange rates in its first-quarter sales, due to high customer inventory and a weak automotive market.
Impact of Customer Inventory
The company posted quarterly revenue of 92 million euros($108 million), down from 121 million euros a year earlier but in line with analysts' average forecast of 93 million euros, according to a company-provided poll.
Automotive Market Challenges
"The correction of... inventories among our direct customers, and the ongoing weakness in the automotive market continued to impact our revenue," CEO Pierre Barnabe said in a statement.
Future Revenue Expectations
The group, whose customers include sector majors such as TSMC, UMC, Sony, Global Foundries and STMicroelectronics, expects second-quarter revenue to grow around 50% organically from the previous quarter.
($1 = 0.8519 euros)
(Reporting by Ozan Ergenay in Gdansk; Editing by Emelia Sithole-Matarise and Jan Harvey)
