IQE plc : Year end trading update
(Thomson Reuters ONE) -
Year on year growth in sales and profits
Cardiff, UK, 18 January 2012: IQE plc (AIM: IQE, "IQE" or the "Group"), the
leading global supplier of advanced semiconductor wafer products and services to
the semiconductor industry, provides a trading update for the year ended 31
December 2011.
Full year revenues for 2011 are expected to exceed £75 million, up from £73
million the previous year. EBITDA is also expected to increase to be not less
than £13.7 million. Net debt is expected to be less than £4 million.
Sales grew rapidly in the first half, driven by strong double-digit growth in
the Group's wireless and optoelectronics divisions. Growth in wireless sales
reflected the increasing adoption and sophistication of portable devices such as
smartphones and tablets using Gallium Arsenide ("GaAs") technology, and by the
increasing adoption of advanced Gallium Nitride ("GaN") technology in high power
wireless applications such as radar and infrastructure. Growth in optoelectronic
sales was driven by a wide variety of applications including consumer,
industrial and advanced high efficiency solar power applications.
As announced in October, second half sales were adversely affected by inventory
corrections in the supply chain related to market share swings amongst a couple
of IQE's key customers. These inventory corrections have unwound as expected,
and should be fully resolved by the end of the first quarter of 2012.
The Group's long standing strategy to qualify multiple products with multiple
customers across the entire supply chain went some way toward offsetting the
impact of the market share shifts. As further qualifications complete the future
impact of market share shifts will continue to diminish.
New product qualifications have progressed well, with significant milestones now
achieved. The Group has successfully qualified its leading edge BiHEMT product
with one of the top three Japanese mobile chip manufacturers, which has recently
announced a major expansion programme in the smartphone market. Sales under
this qualification have started to ramp, and this customer is expected to move
into IQE's "top 10" during the second half.
IQE is also in the final stages of qualification of BiHEMT products with two of
the leading wireless chip manufacturers globally and expects to ramp into
production during the second quarter. In addition, the Group is qualifying a
number of next-generation wireless products with a significant number of
customers.
IQE's business is also being driven by increasing demand across the Group's
other core markets including advanced semiconductor materials for optoelectronic
products which continued to enjoy strong growth driven by a range of existing
and emerging end market applications which are expected to account for an
increased proportion of the Group's 2012 full-year revenues.
Dr Drew Nelson, IQE's Chief Executive, said:
"2011 has been another positive year for the Group, with increased sales and
profits to record levels, despite challenging supply chain and macro-economic
conditions.
"Our core business of wireless-related products for all forms of mobile
communications is performing as expected whilst new and emerging products for
consumer, industrial and defence applications are generating demand across all
our key markets.
"We have added to our manufacturing capacity during the year and expect to
benefit strongly from some significant operational achievements including best
in class quality improvements to our products. This will enable improved
customer output and increased throughput from our own production tools and lead
to continued improvements in operational and financial metrics.
"The Board remains confident that IQE is well positioned to build further on its
robust business model and powerful market position to deliver strong growth in
2012 and beyond."
IQE expects to report its preliminary results in late March 2012.
Contacts:
IQE plc (+44 29 2083 9400)
Drew Nelson
Phil Rasmussen
Chris Meadows
Espirito Santo Investment Bank (+ 44 20 7456 9191)
Richard Crawley
James Bromhead
Canaccord Genuity (+ 44 20 7050 6500)
Simon Bridges
Cameron Duncan
College Hill (+44 20 7457 2020)
Adrian Duffield
Kay Larsen
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: IQE plc via Thomson Reuters ONE
[HUG#1578277]
Unternehmensinformation / Kurzprofil:
Datum: 18.01.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 105181
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contact information:
Town:
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Kategorie:
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