IQE sees positive signs in wireless business
In the final quarter of 2002, sales were 5% lower than the previous quarter at £5.316 million, mainly due to the weakness in the US dollar. Sales were down 31% compared with the final quarter of 2001 due to the dramatic downturn in the optical telecom market.
IQE s operating loss for the full year before goodwill, exceptional items and non-recurring costs was £21.134 million, compared ot a loss of £3.467 million in 2001. The loss in the fourth quarter of 2002 was £5.276 million.
Aggressive cost cutting measures undertaken during 2002, including a headcount reduction of 120 staff (30% of workforce) which was completed in March 2003, saved £6.000 million per year in payroll and other costs.
The company reports continued good progress at IQE Silicon Compounds including the successful completion of customer qualification programs and continued growth in interest in SiGe and related products.
There is also strong evidence of a sustainable upturn in wireless product business, serviced by IQE s US operations, with several major customers now taking regular volume deliveries.
Commenting on the results, Drew Nelson, IQE s president and CEO, said "2002 was an exceptionally difficult year for the semiconductor industry, particularly in the field of optical communications which had been a key market for the Group. However, some market segments had begun to recover by the year end, notably the RF Wireless market where IQE has built a strong competitive position.
"During the year, IQE achieved major reductions in its cost base by aggressively cutting overheads, whilst continuing to diversify its product ranges to reduce dependence on the optical communications sector. These initiatives are beginning to bear fruit and we continue to believe the Group is strongly positioned as the economy recovers."
