IQE announces record revenues for 2009
IQE, a global supplier of advanced wafer products and wafer services to the semiconductor industry, has publishes its audited results for the year ended 31 December 2009. A strong second half of the year saw the company secure £3.0m full year operating profit and £3.7m free cash flow on the back of second half revenues of £31.2m the company saw full-year revenues of £52.7m as opposed to £60.5m in 2008.
Dr Drew Nelson, IQE Chief Executive, said, “We made excellent progress in 2009 on all fronts - strategic, operational and financial. We continue to build on our market leadership, and by continued investment in R&D throughout the downturn. We now have a product range that addresses almost all of the rapidly growing markets for compound semiconductor materials.
The first half of 2009 saw industry wide inventory adjustments but this was followed with sequential revenue growth of 46% in the second half demonstrating strong recovery. The company put cost saving measures into play and these improved efficiencies boosted gross margins to 22% resulting in £11.6m of gross profit as opposed to 2008 which saw 19% gross margins for a gross profit of £11.8m.
Nelson added. "We demonstrated a high degree of operational and financial resilience through a challenging year thanks to proactive management, and a committed and professional workforce. This has enhanced our customers’ confidence in us and builds on the strong relationships that we enjoy with them. We believe that this positions us well to continue to grow our market share. I am extremely pleased with our progress on developing intellectual property for the solar power and advanced electronics markets. These advances are keeping us at the forefront of emerging markets, and give me confidence that we will emerge as a clear leader as these markets move from development phase into production.”
IN 2009 the company fulfilled a number of important goals including qualifying with all major wireless chip manufacturers. IQE also acquired NanoGaN bringing valuable IP. The company has accelerated high power LED and blue/green laser development and developed significant new patents in solar and advanced electronics. This was done despite a reduced capital expenditure from 2008, mainly due to market conditions.
Nelson concluded, “We are at a very exciting time in the Group’s history. We continue to make excellent progress in our core wireless business, whilst at the same time are building an IP rich advanced semi-conductor ‘power house’ that is uniquely positioned to take advantage of the high growth markets that are rapidly emerging in areas such as solid state lighting (SSL), CPV solar cells and consumer electronics. We are confident that IQE is well positioned to achieve continued growth in sales in 2010.”
