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Soitec predicts 20% sales decline in 1H
| Anne-Francoise Pele | | EE Times Europe
(07/02/2007 5:13 AM EDT) | ![]()
| PARIS " French SOI wafer specialist Soitec SA has predicted a 20percent decline in sales for the first half of the financial year2007-2008 and warned of a significant impact on profit margins,particularly in the first six months. In line with its expectations, Soitec observed that the supply chaincontinued to absorb excess inventories held by its customers throughoutthe first quarter. Thus, the group anticipated that the first half ofthe financial year 2007-2008 would be below the previous year by around15 percent in performance, which translates into around 20 percent in absolute terms at the current dollar exchange rate.
Although new products launched by Soitec's main customers will beavailable in the second half of the year, the group said it cannotexclude that "full year sales may be below the prior year."
Soitec confirmed its commitment to implement all possiblemeasures to reduce costs without impacting future prospects for thecontinuing industry adoption of Smart Cut-based advanced materials,notably the implementation of the new plant in Singapore.
For the financial year 2006-2007,ending March 31, 2007, Soitec reported revenues of 372.0 million ($505million), resulting in a 41.5 percent year-on-year growth. At thistime, the group, however, expressed its caution in the short term andanticipated a flat first half in performance for the financial year2007-2008.
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