IQE sees recovery as revenue grows 37 percent
Custom wafer supplier IQE expects sales of £11.3 million ($20.1 million) in the second half of 2005, which would bring revenue for the full calendar year to around £21 million.
That would equate to a 37 percent increase on the figure posted in 2004, with the UK company saying that a strengthening market for III-V-based RF devices and increased use of epitaxy in silicon processing is helping to drive the recovery.
"The business climate continues to improve, with substantial demand now becoming apparent in several end markets," added the company in a statement.
Following a series of cost-cutting measures, IQE has also bolstered its bottom-line performance, managing to break even in the second half of 2005 "“ despite having to deal with the spiralling cost of energy in the UK in recent months.
This year, IQE is expecting to see revenue shoot up by another 30%, buoyed by an improving picture in wireless, fiber-optics and a new contract for silicon manufacturing that could deliver more than $10 million over the next five years if fully exercised.
That new contract is expected to swell IQE s coffers by at least $2 million in the current financial year, as the undisclosed silicon device manufacturer shifts its strategy towards more epitaxy-based products.
IQE also has a new bank loan in place, giving it a current cash balance of around £6 million.
