Year-end Trading Update
(Thomson Reuters ONE) -
Strong demand across full product range delivers record revenues and profits
ahead of market expectations
Cardiff, UK - 20 January 2011: 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 2010.
Second-half revenues and profits continued to show strong growth as a result of
higher demand across IQE's increasingly diverse portfolio of advanced
semiconductor wafer products. Revenues for the second half are expected to be
more than 17% higher than the first half, delivering full-year revenue growth of
over 36% to give full year sales of at least £71.7m.
IQE's high operational gearing is expected to translate the record full year
revenues to an increase in EBITDA of over 56% to at least £12.6m, ahead of
consensus market forecasts of £11.9m (source: Bloomberg).
IQE's strong performance throughout the year reflects the increasing reliance on
advanced semiconductor materials across a broad spectrum of consumer, industrial
and communications applications. The dramatic growth in portable devices from
smartphones to tablets has been the major driver for increased demand in Gallium
Arsenide ('GaAs') wafers specifically for wireless applications. Industry
analysts expect the trend towards greater functionality and portability to
continue.
Demand for advanced compound semiconductor materials is likely to accelerate
following announcements earlier this month at the Consumer Electronics Show
(CES) that manufacturers and carriers are stepping up the rollout of 4G devices
supported by networks capable of download speeds of up to ten times faster than
3G.
IQE's business growth has been further supported by increasing demand across the
Group's diverse range of markets, from advanced semiconductor materials for
optoelectronic communications to high-efficiency solar cells and LEDs. For this
reason, optoelectronic products will account for a growing proportion of the
Group's full-year revenues.
A successful and oversubscribed £21m fundraising was completed in the last
quarter of 2010. The funding was used to strengthen the balance sheet and to
allow for expansion of manufacturing capacity across the Group. Also during the
last quarter, the Group acquired Galaxy Semiconductor, the sole US provider of
advanced infra-red imaging materials to high-value military and other markets.
Now fully integrated within the larger Group, Galaxy is performing ahead of
initial expectations and is contributing well to the business.
As a result of the fundraising, the end-of-year balance sheet is expected to
show a significant increase in net funds, providing the resources for the Group
to selectively invest in additional production capacity to satisfy projected
growing demand over the coming months and years.
Dr Drew Nelson, IQE's Chief Executive, said:
"2010 has been a tremendous year for the Group, with record sales and profits
anticipated.
"Our core business of wireless-related products for all forms of mobile device
has continued to show exceptionally strong growth, whilst new and emerging
products for consumer, industrial and defence applications are generating demand
across all our key markets.
"We continue to make excellent progress in the development and commercialisation
of key intellectual property that we expect will contribute to IQE's revenues
during 2011 and help to increase the Group's competitive advantage and leading
positions in a number of high-growth markets.
"The Board remains confident that IQE is well positioned to continue its strong
growth in 2011."
IQE expects to report its preliminary results on 29 March 2011.
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
College Hill (+44 20 7457 2020)
Adrian Duffield
Carl Franklin
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#1480899]
Unternehmensinformation / Kurzprofil:
Datum: 20.01.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 50579
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