10th Sep 2024 11:17
(Alliance News) - IQE PLC on Tuesday posted improved financial results for the first half of 2024 amid a gradual recovery in the semiconductor industry with double-digit revenue growth reported.
The Cardiff-based supplier of compound semiconductor wafer products and advanced material solutions said pretax loss narrowed to GBP13.9 million in the six months that ended June 30 from GBP21.5 million a year previous.
IQE shares were down 15% at 20.18 pence each in London on Tuesday morning.
Revenue increased 27% to GBP66.0 million from GBP52.0 million, while cost of sales rose just 8.5% to GBP61.0 million from GBP56.2 million.
This was thanks to Wireless revenue, which increased by 73% to GBP38.8 million. By contrast, Photonics revenue slipped 4.3% to GBP26.8 million, and Compound materials on Silicon revenue dropped by 70% to GBP474,000.
Chief Executive Officer Americo Lemos said: "We expect the market to continue to show pockets of recovery during the second half, resulting in more moderate growth for 2024 on a full-year basis. We look forward to progressing the planned IPO of our Taiwanese subsidiary [in H1 2025], which will help to accelerate our diversification strategy".
As part of a restructuring effort, the closure of the company's manufacturing facility in the US state of Pennsylvania is scheduled for the second half of 2024.
Going forward, cost control action will see labour costs reduced by 10% year-on-year and non-labour costs by 5%.
Analysts expect IQE to generate full-year revenue of between GBP130.0 million and GBP153.7 million, reflecting a 13% increase at the lower end from GBP115.3 million in 2023.
Adjusted earnings before interest, tax, depreciation, and amortisation, are forecast to be within a GBP11.1 million to GBP16.6 million range, doubling from GBP4.3 million in 2023 at the lower end.
By Elijah Dale, Alliance News reporter
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