IQE sees strength in wireless
The company says that the drop in the value of its sales is mainly due to pricing pressures, which are intense in the current economic environment. However, it sees its competitive position as being strong, with sales volume being relatively flat through 2002 compared with significantly declining sales for its main competitors.
Continued pick up in wireless markets is being offset by further weakening in the fiber-optic communications marketplace. IQE is expecting short-medium term returns from its InGaP HBT epiwafer business where qualification with a number of customers is well underway.
"The Group is realizing significant cost savings as a result of earlier actions and this is now resulting in reduced cash outflow, even at the low level of current sales," said Drew Nelson, IQE’s president and CEO. "Whilst the Group remains confident that it is in a strong position within the outsourcing market, the protection of its cash position is paramount and the management is focussed on continual cost savings and working capital reductions.
"The Board believes that the Group will benefit strongly as the overall semiconductor industry recovers, and will continue to strengthen its position as the leading outsource supplier of advanced wafer products to the sector."