IQE eyes future profit as revenue ramps
Boosted by strengthening markets across all applications, independent epiwafer supplier IQE has reported a 51 per cent increase in sales revenue for the first half of 2006.
In the six months that ended on June 30, IQE posted sales of £14.6 million ($27.8 million), compared with £11.2 million in the opening half of 2005.
The Cardiff, UK, company reported an operating loss of £1.5 million in the latest financial period, but is on track to post a profit next year.
The upwards revenue trend looks certain to continue, after shareholders approved both a £12 million share issue and the $16 million acquisition of Emcore's electronic materials division (EMD) at an extraordinary general meeting earlier in August.
Under Emcore's ownership, the EMD business - now known as IQE RF - was running close to profitability, and synergies between it and the rest of the IQE group companies, such as enhanced materials buying power, ought to help improve the financial picture considerably.
IQE has also negotiated a two-year extension of its "effective exclusivity" deal relating to the company's largest outsource contract, and says that all areas of the business are growing, with wireless products showing particular strength.
"We will take full advantage of the strong market conditions," said IQE's CEO Drew Nelson. He added that outsourcing was now featuring more prominently in many companies' strategic considerations, as the semiconductor industry was now becoming capacity constrained in several areas.
• The forthcoming September 2006 issue of Compound Semiconductor magazine features an interview with IQE CEO Drew Nelson.
