20th Jul 2016 08:03
LONDON (Alliance News) - IQE PLC said on Wednesday the first half of 2016 showed significant growth in revenue and profit, leaving it in line to meet full year expectations.
The semiconductor designer and manufacturer said it expects to deliver a "significant increase" in revenue and profit for the six months to June 30, compared with the same period in 2015, and is confident it will achieve full-year expectations.
IQE said sales in the first half will be at least 15% higher year-on-year. The photonics unit continued to grow and is expected to deliver a "double digit rate of growth" in the first half, with wireless and infra-red sales expected to show a slight year-on-year increase. License income from joint ventures is expected to be around GBP3.5 million for the first half, the company said.
IQE said it reduced net debt due to its strong cash generation, and expect deferred consideration for previous acquisitions to be completely eliminated by September 2016.
The company also said it made "good progress" on new product development, "re-enforcing a positive outlook".
IQE said the depreciation of sterling against the dollar following the UK's vote to leave the European Union in June had a limited impact on the half-year outcome, as the vote was held near the end of the period. Looking ahead, the company said that, apart from the effect of a weaker pound, it does not expect to see any other material impact on business following Brexit.
"With the progress being made on new product qualifications, further product developments and with increasing revenue diversity, we remain on track to achieve full year expectations," said Drew Nelson, IQE chief executive.
IQE will report its half year results for 2016 on September 13. Shares in IQE were up 16% at 20.65 pence Wednesday morning.
By Lucy Heming; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
IQE