IQE improves revenues, profits and cash flow
Semiconductor wafer company IQE has announced its unaudited half year results for the six months to 30 June 2015. Revenue was up 2 percent on 2014 (£53.2 million compared to £52million), while operating profit increased by 5 percent at £5.9M compared to £5.6M last year.
In addition, a 13 percent increase in operating cash generation delivered a further reduction in net debt, down 12 percent.
Operational highlights include increasing revenue diversity, with non-wireless revenues accounting for 24 percent of group sales (H1 2014: 21 percent) and photonics revenues up 28 percent year-on-year to £7.4m. The wireless market has remained relatively stable, although there is some movement of expected Q2 sales into Q3 due to customer specific issue, according to IQE.
The company also reports continued progress in new product development, notably in GaN technology for RF and power applications, as well as the joint venture , the Compound Semiconductor Centre, announced with Cardiff University to accelerate product development.
Drew Nelson, IQE CEO said: "This was a solid start to the year, in which we delivered continued improvement in our financial results and further reduced our borrowings. IQE's revenues continue to diversify as its photonics sales grow rapidly. The growth in the photonics business follows on from strong engagement by IQE in its customers' product development programmes over the past few years. The increasing number and quality of customer product development programmes is a positive lead indicator which is providing a high level of confidence over the growth outlook for photonics."
He added: "Other non-wireless businesses continue to make good progress. Notably, advanced solar (CPV) achieved a major milestone with initial sales into field deployments, and the technical progress made with GaN technologies, is advancing the group towards initial sales into the RF and power markets in the next 12 to 18 months. "
