IQE anticipates double digit growth for 2016
IQE plc has announced an update on current trading and its outlook for the year ending 31 December 2016, saying it is on track to deliver FY 2016 revenue and adjusted operating profit ahead of expectations.
Revenues are anticipated to reflect a double digit rate of growth year on year, and H2 revenues will be up sequentially over H1.
Drew Nelson, CEO of IQE, said: "IQE has made good progress in 2016, and is performing well against its strategic goals. The breadth of IQE's technologies is a competitive advantage that is enabling its continued growth, and will provide a platform for strong cash generation over the coming years.
The wireless business has largely performed as expected through 2016 and remains on track for year on year growth. Photonics continues to be the fastest growing business segment, enjoying strong double digit growth year on year.
Excellent progress with customer qualifications in photonics during 2016 provides a solid platform for continuing strong growth for this business. In response to this opportunity, the group has increased its capital investment in H2. Infrared has performed in line with expectations, and license income has reduced from the front loaded income enjoyed in 2015.
Revenues, which are primarily dollar denominated, also benefitted in H2 from the devaluation of sterling following the UK's EU membership referendum on 23rd June 2016. The currency impact on profitability is largely presentational as the majority of the group's costs are also denominated in dollars.
The group will report its FY 2016 results on 21 March 2017.
