SOITEC

Soitec reports Q3 2014-2015 consolidated sales And announces strategic re-focus on its core electronics business - Seite 2

Solar Energy Business Segment

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 Outlook

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 2^nd half of 2015. Majority of Soitec Electronic business is today covered by several long term contracts.

Strategic re-focus on core electronic business

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%.