Soitec posts Q1 sales in line with expectations

(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.

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.

"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.

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)