24th Mar 2015 09:18
LONDON (Alliance News) - IQE PLC said Tuesday its outlook for 2015 remains positive and it is confident in meeting its full-year earnings expectations, as it posted a flat pretax profit for 2014, with better margins and cost cutting helping offset a decline in revenues.
IQE provides wafer products and services to the semiconductor industry.
The company posted a pretax profit of GBP5.2 million, flat from 2013, as an improved margin and cost reductions helped offset lower revenue of GBP112.0 million from GBP126.8 million, which IQE attributed to slower demand for wireless wafers, industry wide inventory correction, and the strength of sterling.
IQE posted exceptional costs of GBP10.9 million, including a GBP9.9 million exceptional gain from the release of a contingent deferred consideration being offset by depreciation, amortisation, impairment and restructuring costs. Adjusted to strip out these exceptional charges, IQE posted a pretax profit of GBP16.2 million, up from GBP13.0 million.
The company said the wireless market had "paused for breath ahead of the next wave of hardware innovation". However, revenue was stronger in its second half, up 15% compared to the first as demand strengthened throughout the year.
IQE said that trading in its first three months of the year has been in line with it expectations. It cited a "robust" outlook for the wireless market as adoption of 4G technology for mobile devices grows, and there is continuing growth in demand for mobile data.
"We are making good progress against our strategic objectives. Our wireless business continues to provide a solid platform, whilst our other markets are delivering encouraging revenue growth and are helping us to diversify our revenues," said Chief Executive Drew Nelson in a statement.
Shares in IQE are trading down 0.8% at 22.57 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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