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Analog Devices, Inc. announced financial results for its fiscal second quarter 2024, which ended May 4, 2024.
“ADI delivered second quarter revenue above the midpoint of our outlook, despite continued macro and inventory headwinds. Further, the strength and resiliency of our business model, coupled with disciplined cost control, enabled us to achieve profitability and earnings per share above the high-end of our outlook,” said Vincent Roche, CEO and Chair.
“We believe inventory rationalization across our broad customer base is stabilizing, clearing a path for us to return to sequential growth in the third quarter. This, coupled with improving new orders, gives us optimism that we are at the beginning of a cyclical recovery.”
Roche continued, “The continued proliferation of the Intelligent Edge presents ADI with numerous concurrent secular growth vectors. AI, where we have been increasing our investments, is expected to accelerate these trends as it increasingly extends from centralized applications in data centers to a myriad of applications at the physical edge. As a leader of real-world data creation, processing, and connectivity, our solutions are becoming increasingly important to customers in the AI-driven era. As such, my confidence in ADI’s ability to drive long term value for all stakeholders remains resolute.”
For the third quarter of fiscal 2024, company’s forecas revenue is $2.27 billion, +/- $100 million. At the midpoint of this revenue outlook, reported operating margin is expected on the level of approximately 20.1%, +/-200 bps, and adjusted operating margin of approximately 40.0%, +/-100 bps. Analog Devices is planning for reported EPS to be $0.71, +/-$0.10, and adjusted EPS to be $1.50, +/-$0.10.
The company’s third quarter fiscal 2024 outlook is based on current expectations and actual results may differ materially as a result of, among other things, the important factors discussed at the end of this release. These statements supersede all prior statements regarding business outlook set forth in prior ADI news releases, and ADI disclaims any obligation to update these forward-looking statements.
Performance for the Second Quarter 2024 Financials
Original – Analog Devices
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Soitec and Tokai Carbon, a comprehensive manufacturer of carbon and graphite products, have entered into a strategic partnership for the development and supply of polycrystalline silicon carbide substrates specifically designed for Soitec SmartSiC™ wafers.
Silicon carbide is a disruptive compound semiconductor and SmartSiC™ engineered substrates accelerate the adoption of silicon carbide for electric mobility, industrial and smart grid applications by delivering superior manufacturing and cost efficiencies with an improved environmental footprint.
Under this partnership, which will see Tokai Carbon supply 150mm and 200mm poly-SiC wafers to Soitec, the two companies are harnessing their advanced R&D capabilities to enhance the SmartSiC™ ecosystem. Tokai Carbon’s advanced technology and manufacturing capacity in polycrystalline silicon carbide (polySiC) combined with the right to use Soitec specifications for polySiC coarse wafers compliant with Soitec SmartSiC™ is expected to make a strategic contribution to the global ramp-up of SmartSiC™ wafer production.
Cyril Menon, Chief Operations Officer of Soitec, stated: “This partnership with Tokai marks yet another key step in the ramp-up of Soitec’s SmartSiC™ technology to address fast-growing markets such as electric mobility and industrial electrification. Tokai’s top quality SiC products and R&D capabilities, combined with Soitec’s innovative SmartSiC™ technology, can help to accelerate global adoption of electric mobility and other SiC technologies. This is an important milestone in terms of perception and value creation for the SmartSiC™ ecosystem.”
Hajime Nagasaka, CEO of Tokai Carbon, commented. “The polycrystalline SiC substrate to be supplied to Soitec is a strategic product in our solid SiC product series. We are pleased to see our long years of research and development come to fruition in this way, and we have high expectations for this product in the SiC semiconductor market, which is expected to expand significantly in the future. The partnership with Soitec is also very meaningful in terms of contributing to the realization of a sustainable society.”
Original – Soitec
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X-FAB and Soitec will begin work to offer Soitec’s SmartSiC™ wafers for the production of silicon carbide power devices at X-FAB’s plant in Lubbock, Texas.
This collaboration follows the successful completion of the assessment phase, during which silicon carbide (SiC) power devices were manufactured at X-FAB Texas on 150mm SmartSiC™ wafers. Soitec will offer X-FAB’s customers easy access to the SmartSiC™ substrate through a joint supply chain consignment model.
X-FAB is the pioneer and leader of the foundry model in the fast-growing SiC market. Silicon carbide (SiC) is a disruptive compound semiconductor material with intrinsic properties providing superior performance and efficiency over silicon in power applications.
SmartSiC™ is a proprietary Soitec technology based on the company’s SmartCut™ process, in which a thin layer of a high-quality monocrystalline (mono-SiC) ‘donor’ wafer is split off and bonded to a low resistivity polycrystalline (poly-SiC) ‘handle’ wafer. The resulting substrate offers improved device performance and manufacturing yields. The process allows multiple re-uses of a single donor wafer, significantly reducing cost and related CO2 emissions.In this fast-growing market, Soitec is ramping production of SmartSiC™ substrates at its new plant of Bernin, near Grenoble (France). X-FAB is increasing production capacity for SiC devices at the Lubbock plant. The use of the SmartSiC™ substrate enables X-FAB’s customers to design smaller devices, resulting in efficiency improvements through an increased number of dies per wafer. The benefit of reduced CO2 emissions from the substrate manufacturing process will also contribute to X-FAB’s initiative to reduce its overall carbon footprint.
Sophie Le-Guyadec VP Procurement of X-FAB, states: “As the leading SiC foundry, we want to provide our customers the full range of opportunities to design innovative and robust SiC devices for electric vehicles, renewable power and industrial applications. To offer the most advanced silicon carbide processes and manufacturing capabilities, we jointly agreed to provide our customers easy access to Soitec’s innovative SmartSiC™ via a consignment model.”
Emmanuel Sabonnadiere, Soitec Executive Vice President Automotive and Industry comments: “Soitec’s SmartSiC substrates and X-FAB’s foundry services are a perfect fit to meet increasing demand for new SiC products. This cooperation is a significant milestone for the deployment of SmartSiC in the U.S. market and internationally, thanks to X-FAB’s global footprint.”Original – X-FAB
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Toshiba Electronic Devices & Storage Corporation announced new board of directors, with an effective date of June 1, 2024. The composition of the Board of Directors and the company’s Auditors, as of June 1, 2024, will be as follows:
Directors and Officers of the Company:
- Director, President & CEO – Taro SHIMADA (Toshiba Corporation)
- Director, Vice President – Noriyasu KURIHARA
- Director – Seiichi MORI
- Director – Shin KUROSAWA
- Director – Hiroyuki SHINKI (Toshiba Corporation)
- Director – Masazumi TOMISHIGE (Toshiba Corporation)
- Director – Takanori NAKAZAWA (Toshiba Corporation)
- Director – Yutaka SATA (Toshiba Corporation)
- Auditor – Hiroki OKADA
- Auditor – Masami TAKAOKA
- Auditor – Akira NAKANISHI (Toshiba Corporation)
Retiring Directors as of June 1, 2023:
- Norifumi INUKUBO
- Hiroshi KURIKI
Original – Toshiba
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Soitec announced its revenue for the fourth quarter of fiscal year 2024 and its full-year results of fiscal year 2024 (ended on March 31st, 2024). The financial statements were approved by the Board of Directors during its meeting.
- Q4’24 revenue reached €337m, down 2% at constant exchange rates and perimeter compared to the record quarter Q4’23
- FY’24 revenue amounted to €978m, down 10% both at constant exchange rates and perimeter and on a reported basis, in line with latest guidance
- FY’24 EBITDA margin at the level of 34%, also in line with latest guidance
- FY’24 net profit, reached €178m, an 18% margin
- FY’25 outlook confirmed: Soitec expects revenue to be stable year-on-year at constant exchange rates and perimeter and EBITDA margin to reach around 35%
- Changes in the Board of Directors: Frédéric Lissalde to be proposed as Director at the next Annual General Meeting
Pierre Barnabé, Soitec’s CEO, commented: “Fiscal year 2024 was a challenging year, marked by the impact on our sales of RF-SOI inventories correction across the entire smartphone value chain. Despite these difficult market conditions, we succeeded in maintaining a solid level of profitability, while continuing to invest both in innovation and industrial capacity to prepare for the future.
Regarding our fiscal year 2025, the RF-SOI inventory correction will continue to impact our revenue through the first part of the year. However, we are seeing early signs of improvement downstream, led by the ongoing return to growth of the smartphone market, which gives us confidence in the recovery of our RF-SOI sales in the second half of the year. At the same time, we will continue to benefit from strong performance of our other SOI products, and from the successful expansion of our product portfolio, with increased penetration of POI and the ramp-up of SmartSiC.
Looking ahead, we remain very confident in our ability to leverage the significant growth drivers underpinning our three end-markets. Coupled with the increasing adoption of engineered substrates to deliver more powerful and energy-efficient solutions to a growing number of customers, our continued diversification and expansion of our product portfolio, in both SOI and Compound substrates, supports our clear vision towards $2bn revenue in the medium term, with significant margin expansion potential,” added Pierre Barnabé.
Original – Soitec
