IQE PLC Iqe Plc : Trading Statement & Notice Of Results
20 July 2017 - 4:00PM
UK Regulatory
TIDMIQE
Strong growth in H1 revenues marks the start of increased VCSEL wafer
demand for mass-market consumer applications, and triggers a capacity
expansion to meet higher levels of expected demand in H2 2018.
Cardiff, UK. 20(th) July 2017: IQE plc (AIM: IQE; "IQE", the "Group"),
the leading global supplier of advanced wafer products and wafer
services to the semiconductor industry, provides a trading statement for
the six months ended 30 June 2017.
The Group announces that it expects to deliver revenues of c. GBP70m for
the first half, reflecting increased sales in each of its three primary
markets. Notably, photonics continued to deliver strong double-digit
growth, enjoying the early phase of a significant ramp in VCSEL wafer
supply for mass market consumer applications. As a result, overall wafer
sales are expected to grow by c.16% against H1 2016. This has also been
supplemented by c. GBP1m of license income (H1 2016: GBP3.5m).
The Group enjoys a broad range of end market drivers, which are
increasing the diversity of its wafer sales. The Group is engaged in a
range of programmes which provide significant upside potential to its
near and mid-term growth expectations. These include VCSEL, GaN for RF
and power, full service DFB wafers, InfraRed and cREO(TM). The start of
the mass-market ramp for VCSEL wafers marks an inflection point in the
commercialisation of this technology. The Group has secured multiple,
multi-year contracts for this VCSEL ramp which reflects its strong
competitive advantages including its technology leadership and its
proven track record in delivering wafers into high volume consumer
markets. As a result, the Board has now approved a capacity expansion
plan to meet higher levels of expected demand for H2 2018 than
previously anticipated. This follows increased investment during H1 2017
in operating costs, product development and working capital to help
position the Group for the expected ramp and meet higher levels of
growth in H2 of 2017.
As part of its expansion plan the Group announces that it has agreed a
heads of terms for the lease of a new premises in South Wales. The
lease is with the Cardiff City Region, which has a goal of supporting
the development of the Compound Semiconductor Cluster in South Wales.
This lease provides the infrastructure needed for IQE's expansion in a
highly cost effective manner. The lease is for 11 years, and provides
IQE with an option to extend the lease or purchase the freehold. In
parallel, the Group has placed orders for new MOCVD equipment.
Following the devaluation of sterling in June 2016, currency provided a
tailwind of c.10% year on year, however the impact is largely
presentational as the majority of the Group's costs are also denominated
in foreign currency.
Notice of Results
The Group expects to report its half-year results for 2017 on 5(th)
September 2017.
Dr Drew Nelson, Chief Executive of IQE, said:
"The first half of 2017 has been a very exciting time for the IQE Group.
Overall, all business units have progressed in line with expectations,
although the Photonics unit has been the stand out with continued
strong double digit growth, accelerating towards the end of the first
half. The Group has multiple high growth opportunities ahead, and in
order to ensure future capacity is in place in a timely fashion to
address H2 2018 and subsequent demand, we have announced an MOU with
Cardiff City Region to secure operational facilities in a highly cost
effective arrangement, together with initial orders for increased MOCVD
capacity. In light of recent progress and its increasingly confident
outlook, the Board expects the Group will now exceed market expectations
for the full year and whilst it remains early into the start of the
mass-market adoption of our technology, it is possible that with the
current contract momentum, a more significant upgrade to current market
expectations could be delivered for 2018."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
GLOSSARY OF TERMS
VCSEL............... Vertical Cavity Surface Emitting Laser
GaN.................... Gallium Nitride
RF...................... Radio Frequency
DFB.................... Distributed Feedback Laser
cREO(TM)............. Crystalline Rare Earth Oxide
CONTACTS
IQE plc +44 (0) 29 2083 9400
Drew Nelson
Phil Rasmussen
Chris Meadows
Canaccord Genuity + 44 (0) 20 7523 8000
Simon Bridges
Henry Fitzgerald O'Connor
Richard Andrews
Peel Hunt +44 (0) 20 7418 8900
Euan Brown
ABOUT IQE
http://iqep.com
IQE is the leading global supplier of advanced semiconductor wafers that
enable a diverse range of applications, supported by an innovative
outsourced foundry services portfolio that allows the Group to provide a
'one stop shop' for the wafer needs of the world's leading semiconductor
manufacturers.
IQE uses advanced crystal growth technology (epitaxy) to manufacture and
supply bespoke semiconductor wafers 'epi-wafers' to the major chip
manufacturing companies, who then use these wafers to make the chips
which form the key components of virtually all high technology systems.
IQE is unique in being able to supply wafers using all of the leading
crystal growth technology platforms.
IQE's products are found in many leading-edge consumer, communication,
computing and industrial applications, including a complete range of
wafer products for the wireless industry, such as smartphones and
wireless infrastructure, Wi-Fi, base stations, and satellite
communications; optical communications, optical storage, printing,
thermal imagers, leading-edge medical technologies, automotive and
aerospace technologies, a variety of advanced silicon based systems and
high efficiency concentrator photovoltaic (CPV) solar cells.
IQE operates multiple manufacturing and R&D facilities worldwide.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: IQE plc via Globenewswire
http://www.iqep.com
(END) Dow Jones Newswires
July 20, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Iqe (LSE:IQE)
Historical Stock Chart
From Apr 2024 to May 2024
Iqe (LSE:IQE)
Historical Stock Chart
From May 2023 to May 2024