Interim trading update
(Thomson Reuters ONE) -
IQE plc
15 July 2010
IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of
advanced semiconductor wafer products and wafer services to the semiconductor
industry, provides an interim trading update for the six months to 30 June 2010.
As a result of stronger than expected wireless product sales and increasing
demand for optoelectronic and silicon-based wafers, the Board expects first-half
performance to be significantly ahead of market expectations.
The Group expects to report first-half revenues of at least £32.8 million,
EBITDA above £5.3 million and retained profit of more than £2 million. Compared
with the first half of 2009, this represents revenue growth of over 50% with
EBITDA up over 178%, illustrating the Group's powerful operational leverage.
First-half growth was driven by good recovery in the wireless market with
particularly strong demand for smartphones. The Group achieved higher than
expected sales in the normally weak first quarter with demand accelerating in Q2
and looking robust for the remainder of the year.
Demand increased strongly for optoelectronic products, in particular IQE's
world-leading Vertical Cavity Surface Emitting Laser (VCSEL) technology, which
the Board believes will soon play a key enabling role in a number of high volume
consumer applications. Notable applications of VCSEL technology include finger
navigation, optical heating, internal interconnectors and external optical
connectors such as Active Optical Cables and Intel's Light Peak technology,
which will provide data transfer speeds 10-200 times faster than existing
connectors such as USB cables.
In addition, demand continues to grow strongly for wafers to create
energy-efficient products such as Concentrator PhotoVoltaics based on compound
semiconductors and light emitting devices based on Gallium Nitride, with notable
milestones achieved in bringing both these products to mass markets.
First-half performance was also boosted by a return to growth for the Group's
silicon-based epitaxy services for high-performance electronic products, with a
high level of interest in new products such as germanium on insulator (GeOI),
launched in 2009, and Silicon on Sapphire (SOS).
The outlook for the second half remains positive with the Board expecting
continued strength in sales volumes driven by increasing demand for smartphones
and high-speed wireless technology, as well as for consumer optoelectronic
devices. Demand-driven growth is being reinforced by an increasing trend towards
outsourcing across all the market sectors in which the Group operates.
Dr Drew Nelson, IQE's Chief Executive, said:
"Strong growth has returned in IQE's key markets with higher than expected sales
of smartphone products in Q1'10 and accelerating growth for optoelectronic
products and silicon-based epiwafers for innovative consumer technologies. In
addition, demand for energy-efficient third-generation CPV solar products and
Solid State Lighting (SSL) devices continues to grow strongly.
"The Group's operationally geared model has translated strong revenue growth
into even stronger growth in profits and the Board remains confident of strong
demand for IQE's world-leading products in the second half of 2010."
IQE expects to report its interim results on 1 September 2010.
Contacts:
IQE plc (+44 29 2083 9400)
Drew Nelson
Phil Rasmussen
Chris Meadows
Execution Noble & Company Limited (+ 44 20 7456 9191)
John Llewellyn-Lloyd
James Bromhead
College Hill (+44 20 7457 2020)
Adrian Duffield
Carl Franklin
[HUG#1431752]
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Source: IQE plc via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 15.07.2010 - 08:00 Uhr
Sprache: Deutsch
News-ID 23940
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