IQE sees sales and losses increase
The second quarter operating loss before goodwill amortisation, operating exceptional items and one off charges was £5.493 million, compared with a loss of £4.98 million in the previous quarter. First half operating loss (pre goodwill amortisation, exceptional items and one off charges) was £10.38 million, compared with a profit of £2.55 million in the same period last year.
Operating cash outflow for Q2 was reduced to £1.18 million, 65% less than the previous quarter despite higher operating losses, due to strong cash flow management. First half operating cash outflow was limited to £4.431 million, compared with an outflow of £1.32 million for the same period last year. Gross cash at the end of Q2 was £23.82 million.
The company has undertaken a comprehensive strategic review of its business that will see it place renewed emphasis on areas where it sees the best prospects for growth, including wireless, lighting, optical storage and strained silicon markets. As part of the review, significant cost control/reduction actions have been taken including additional redundancies of approximately 60 during the current third quarter, reducing total workforce to 310.
“Notwithstanding the weak industry outlook, we continue to make significant product progress, particularly with regard to our leading position with strained silicon, which is quickly becoming recognised as the key material for next generation microprocessors,” said Drew Nelson, IQE’s president and CEO. “We continue to believe strongly in the outsource model and the group’s positioning, and that we will be well placed when demand returns to the technology markets.”
