(BFM Stock Exchange) – The company specializing in materials for semiconductors fell to the Paris Stock Exchange after announcing a turnover of the first quarter in sharp decline. Soitec forecasts for the second quarter have also disappointed.

Times are hard for Soitec which continues the disappointments. The fault of a demand at half mast on the automotive side, an industry very consumer of fleas, as well as the weakness of the smartphones market.

Visibility is so low that the company specializing in materials for semiconductors was forced to abandon in May all the medium-term objectives that it had previously set itself.

And the figures for the first quarter published Tuesday evening by the Isérois group still illustrate these difficulties. Between April and the end of June, Soitec sales collapsed by 24% over a year, to land at 92 million euros, which is slightly below the expectations of analysts who tabled on 93 million euros according to a consensus cited by Oddo BHF.

On constant perimeter and exchange rate, the decline is more pronounced, by 16%. However, it is less than feared by the company, which tapped on a 20% drop in its income in comparable data.

The slowdown in the automotive market has further penalized the “automotive and industry” segment where income collapsed from 81% in comparable data to 5 million euros.

The turnover of the “mobile communications” division reached 43 million euros, in organic withdrawal of 7% over a year. “After a strong rebound in the fourth quarter of 2024-2025 due to the activity seasonality, a new correction of the level of RF-SOI stocks (Soitec substrates adapted to smartphones and the automobile, editor’s note) in customers was expected. The level of sales of RF-SOI substrates is thus fell to a low level in the first quarter 2025- 2026 To that of the first trimester 2024-2025, “explains Soitec.

The “Edge & Cloud AI” segment, intended for semiconductors for connected objects, data centers and 3D sensors, has seen its revenue increase by 13% in comparable data, despite the programmed stop of the first generation of imaging substrates for applications based on 3D imaging.

Disappointing forecasts

Soitec has not communicated any annual prospects since May and is now limited to formulating quarter objectives per quarter. For the second quarter of its fiscal year 2025-2026, the company indicated rely on a growth of 50% of its income in comparable data compared to the first quarter.

According to Soitec, this resumption of activity will be fed by the Edge & Cloud AI division, which “should keep its strong dynamics”, and by “almost meat” of the turnover of the mobile communications division, compared to the first quarter.

However, the company warned anticipate a “sharp decline” over a year, income from the “automotive and industry” division.

Revenues are therefore expected around 138 million euros indicates Oddo BHF which indicates that this forecast is “very below” of its expectations and those of consensus housed at 185 and 172 million euros respectively.

“New massive destocking is expected from customers, more important than what was initially planned. The smartphones market could also prove to be volumes in 2025 without growth (against +3% initially targeted),” added the design office.

The prospects of Soitec accredit Jefferies’ investment thesis. In a note published in June, the bank explained not to take out any real improvement both on smartphones and as in the automobile for Soitec during the current financial year, closed next March.

“This is still a bad publication for Soitec,” said Oddo BHF, which remains to outperformance on the title, with regard to the company’s low valuation on the company.

On the Paris Stock Exchange, Soitec fell 5.9% around 4:00 p.m. sanctioned for its disappointing prospects, and leads to its STMICROELECTRONICSS wake which yields 4.4%.