22 August 2007
IQE plc (AIM: IQE, "the Group"), the leading global supplier of advanced wafer
products and services to the semiconductor industry, announces its Interim
Results for the half year ended 30 June 2007.
Revenues up 62% at £23.7m (H1/2006: £14.6m), despite the impact of an adverse USD exchange rate. Revenue up 80% at constant exchange rates to £26.2m.
Gross profit up 206% at £3.9m (H1/2006: £1.3m)
EBITDA profit £1.3m (H1/2006: EBITDA loss £1.1m before exceptional gain)
Operating profit £0.1m (H1/2006 operating loss £1.8m before exceptional gain)
Cash generated from operations £0.4m (H1/2006 outflow £3.4m)
Net cash outflow £2.8m (H1/2006 outflow £5.1m)
Half year cash balance £1.3m (H1/2006 £1.2m)
Acquisitions made during 2006 integrated smoothly and contributing strongly
Also announced today; a multi-year preferred supplier agreement signed with an existing customer, one of the leading wireless chip manufacturer, expected to be worth at least $50m over first two years - see separate statement
Relocating to larger state-of-the-art facility in Singapore to enable significant future capacity expansion in Asia Pacific
Major R&D programme secured worth $4m
Dr Drew Nelson, IQE Chief Executive, commenting on
the results said:
"Continued strong growth in the global wireless marketplace combined with a shift towards high-end, fully-featured handsets, high speed wi-fi and satellite communications systems, all of which use increasing amounts of our products, have driven revenues ahead of expectations during the first half of the year. This is despite the impact of a slow start in January and February and a weak dollar.
"Our position in the wireless market was substantially bolstered by the two major acquisitions made during 2006. This has positioned IQE as the clear leader in the supply of wafer products to the global wireless communications industry as confirmed by Strategy Analytics. We have also today announced the award of a very substantial, multi-year, preferred supply agreement with one of the world's largest wireless chip manufacturers, worth in total at least $50 million over the next two years.
"I am extremely pleased to announce the Group's move into operating profit as a result of the substantially increased revenues and strong operational gearing. This is a key milestone in our continuing progress and clearly demonstrates the strength of the business model. As more customers become cross qualified at our various manufacturing locations worldwide, we will be able to leverage our additional manufacturing capacity, which we expect will result in continued strong growth."
Click H1 2007 to download the full
report (pdf: 90kb)
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NOTE TO EDITORS
IQE is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading semiconductor manufacturers.
IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers ('epi-wafers') to the major chip manufacturing companies, who then use these wafers to make the chips which form the key components of virtually all high technology systems. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.
IQE's products are found in many leading-edge consumer, communication, computing and industrial applications, including a complete range of wafer products for the wireless industry, such as mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite communications; optical communications, optical storage (CD, DVD), laser optical mouse, laser printers & photocopiers, thermal imagers, leading-edge medical products, barcode, high efficiency LEDs and a variety of advanced silicon based systems.
The manufacturers of these chips are increasingly seeking to source wafers from specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market.
IQE also provides bespoke R&D services to deliver customised materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way IQE's supply services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.
IQE operates six manufacturing facilities located in Cardiff (two) and Milton Keynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in the USA; and Singapore. The Group also has 11 sales offices located in major economic centres worldwide.