IQE benefitting from 5G and handset growth
Wireless handset market driving 30 percent year-on-year growth in GaAs revenues
IQE, the supplier of compound semiconductor wafer products and materials, has announced its interim results for the six months ended 30 June 2021.
In March of this year, IQE had announced record full year revenues up 27 percent to £178 m, driven by the start of the 5G mega-cycle. IQE noted the growth in its Wireless and Photonics business divisions benefitting from the 5G infrastructure developments in Asia and the continued growth in 3D sensing respectively.
In its Interim results, the company has broadly maintained this level of performance, despite headwinds related to the 5G infrastructure deployments as well as shifts in foreign exchange related to US dollar weakness against sterling.
In its Interim results the company announced: H1 revenue of £79.5m, a decrease on last year due to the aforementioned headwinds, but only slightly below H1 2020 on a constant currency basis; and H1 Adjusted EBITDA of £11.6m representing a flat year-on-year result on a constant currency basis.
The company has benefitted from sustained wireless handset related growth, with 30 percent year-on-year growth in GaAs revenues due to increased demand for epiwafers used in power amplifiers for 5G handsets and WiFi 6/6E routers
Separately, following on from the announcement at IQE’s AGM in June that the search for a new CEO to succeed Drew Nelson was ‘at an advanced stage’, today it has announced that it has a preferred candidate with a strong track record of driving growth, experience at the biggest companies in the sector and the right sort of international experience and relationships.
In the period leading up to the announcement of the new CEO and their starting at IQE, chairman Phil Smith will step into the role of Interim executive chairman of CEO, as Drew Nelson becomes president and non-executive board member where he will continue to advise and support the company. Phil Smith has strong executive leadership credentials – having been CEO of Cisco UK for a number of years prior to joining IQE.