|
IQE PLC on Tuesday said interim trading ‘fell short of expectations,’ as it backed its annual outlook and reported further expressions of interest regarding a potential sale. The Cardiff-based supplier of advanced wafer products for the semiconductor industry reported a pretax loss of £26.5 million for the six months that ended June 30, widening from £13.9 million a year earlier. Driving the weaker bottom line was a 31% reduction in revenue to £45.3 million from £66.0 million, as IQE faced contractions across its Wireless and Photonics segments. Wireless revenue fell 52% to £18.6 million from £38.8 million, with this owed to slow demand tied to the overhang of 2024 customer inventory builds, tariff uncertainty and ‘softness in consumer purchasing of mobile handsets.’ Photonics Revenue edged 0.7% lower to £26.6 million from £26.8 million. Stability in this segment was linked to strong performance in InP data communications for AI markets. IQE added that this was offset in part by funding delays in US military and Infrared markets. Further hampering the bottom line, IQE reported an impairment loss on intangible assets of £7.0 million, up from nothing a year earlier. Shares in IQE rose 2.1% to 7.95 pence on Tuesday morning in London. Discussing its ongoing strategic review, IQE said it continues to advance discussions pertaining to the sale of operations in Taiwan. Any proceeds from the conclusion of a potential sale would be expected to be utilised to ‘fully repay’ its revolving credit facility with HSBC, said IQE, along with convertible loan notes issued back in March. It added that it would also look to invest cash in its core operations. IQE also noted ‘additional early-stage expressions of interest’ with regard to the potential sale of the company. This follows its receipt of an approach from a potential offered reported earlier this month. Looking ahead, IQE continues to expect revenue for the full year of between £90.0 million to £100 million, and adjusted earnings before interest, tax, depreciation, and amortisation position between a £5 million loss and £2.0 million in earnings. IQE reported £118 million in revenue for 2024, and adjusted Ebitda of £8.1 million. ‘Our first half performance fell short of expectations, driven by a combination of market headwinds and the unwinding of customer inventory. Despite this, I remain encouraged by the progress we have made and our continued investment in innovation is yielding promising results,’ said Chief Executive Jutta Meier. ‘Looking ahead, our operational discipline supports IQE’s long-term vision centred on sustainable growth. This is underscored by our continued strong customer pipeline, which reinforces my confidence in our diversification strategy. Additionally, I am pleased to see the increasing level of interest in our Strategic Review, and I look forward to updating the market on the progress we are making in due course.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
