14 July 2011

IQE to report first-half 2011 revenue growth of 20% year-on-year 

In an interim trading update for first-half 2011, epiwafer foundry and substrate maker IQE plc of Cardiff, Wales, UK expects to report revenue of at least £38m. Compared with first-half 2010, this represents underlying growth in US dollar revenue of more than 20%, including about £1m from the Galaxy business acquired in September 2010.

Despite the adverse impact of foreign currency exchange, earnings before interest, tax, depreciation and amortization (EBITDA) should be at least £6m, down on second-half 2010’s £13.1m but up from £5.4m in first-half 2010.

IQE says that the strong organic revenue growth has been driven by both the wireless and opto electronics markets. 

Wireless has been driven by sales of gallium arsenide (GaAs) products into wireless devices, supplemented strongly by the rapid growth of gallium nitride (GaN) sales into the radar and wireless infrastructure markets.

Organic revenue growth in the optoelectronics market has been driven across a range of end markets, including IQE’s vertical-cavity surface-emitting laser (VCSEL) technology for consumer and industrial applications, optical communications, and solar power.

IQE says that it continues to make good progress with its electronics division, which is focussed on combining compound semiconductors with silicon to create next-generation semiconductor materials for a broad range of ultra-high-speed and high-performance applications.

The outlook for second-half 2011 remains upbeat, says IQE. The board expects continuing robust growth in the group’s core wireless and optoelectronics businesses, as demand for both industrial and consumer end-user devices containing IQE products remains strong. This confidence is strengthened by the continued progress being made in new product developments and qualifications.

“The continued growth in demand for our wireless products and accelerated growth for our optoelectronic wafers has enabled us to maintain our rapid growth,” comments chief executive Dr Drew Nelson. “The prospects for the group are very exciting and, with our highly geared business model, provide the board with considerable confidence in a continued improvement in financial performance for the second half.”

IQE expects to report its full interim results on 7 September.

See related items:

IQE reports record revenue and higher-than-expected profit for 2010

IQE revenue grows 54% year-on-year to record £33m in first-half 2010

IQE expects first-half 2010 revenue up 50% year-on-year

IQE rebounds by 46% to record £31.2m revenue in second-half 2009

IQE expects second-half 2009 revenue 45% up on first half

See: IQE Company Profile

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