Tech firm reports record interim financial results
ONE of Wales’ leading tech firms, IQE, has reported record interim financial results with an expectation of full-year revenues of at least £165m.
IQE’s wafer technology goes into chips, which then end up in technology applications from aerospace to healthcare, as well as for 5G mobile network infrastructure and handsets, and has maintained production at its global sites, including its compound semiconductor mega-foundry in Newport, through the pandemic.
For the six months to June 30, 2020, the Stock Market-listed firm delivered revenues of £89.8m, a 35% rise on the first half of 2019.
It achieved an adjusted operating profit of £4.3m, compared to a loss of £1.9m a year earlier.
It posted losses after tax of £5m, driven by a number of non-cash writedowns including on patents and certain development intangibles, compared to losses of £10.7m a year earlier.
Its wireless division returned to growth, up 50% on a year earlier, driven by strong demand for 5G handsets, as well as significant growth for wafers deployed in 5G infrastructure roll-outs.
Photonics achieved 20%-plus growth, in part driven by strong demand for lasers for communications and industrial applications, and IR sensors for aerospace and military applications.
Its chief executive, Dr Drew Nelson, said: “I am very proud of the results that IQE has achieved in the first half of 2020, particularly given the uncertain external environment. Building on our investments in our products, our people and our infrastructure, we have demonstrated both financial and operational resilience and have delivered record H1 revenues.
“However, our priority has been to ensure all our colleagues are safe during this unprecedented time, and I would like to take this opportunity to thank our dedicated staff who successfully maintained operations at all of our global sites despite the challenges posed by the global pandemic.
“IQE remains focused on executing our technology roadmap, and we are confident this momentum will continue into H2. Our business remains well placed to capitalise on opportunities in 5G mobile network infrastructure and handsets, 3D sensing in VCSEL-based (vertical cavity surface emitting laser) products and a host of advanced sensing applications across a broad optical spectrum.”
On the outlook for the full year, despite the pandemic and anticipated global recession, it said its trading performance to date had been strong with customers recently reporting positive trading outlooks, underlying the resilience of the sector.
It added: “In this context, the group now provides full-year revenue guidance of at least £165m (£140m in 2019) equating to full-year revenue growth of at least 18%.”
The guidance exceeds a recent consensus of analysts anticipating full-year revenues of £153.6m.
It also expects to deliver at least a mid-single-digit adjusted operating profit for the full year.