IQE improves performance as wireless comms becomes dominant -

IQE improves performance as wireless comms becomes dominant


LONDON — IQE plc, the supplier of semiconductor wafer products and services has seen increasingly strong trading from March to June following flat period in the first two months of the year.

Monthly revenue has increased and the company's board anticipates overall revenues for the half year to the end of June to be slightly above market forecasts of £22.5million.

IQE (Cardiff, Wales) says as a result of the group’s strong operational gearing, earnings before interest, taxes, depreciation and amortization (EBITDA) for the half year will be substantially higher than analysts’ current forecast of a broadly breakeven EBITDA. This result has been achieved despite the continued and increasing weakness of the dollar against sterling. The company also has a facility in Bethlehem, Pennsylvania.

Both MBE Technology Pte (MBET) and IQE RF (formally EMD), acquired in 2006, have been integrated into the group and have performed ahead of management expectations.

The company says that by gaining exposure to the wireless power amplifier market through IQE RF, and exposure to the Asia Pacific markets through MBET, the product and customer reach of IQE has been enhanced. The global wireless communications market now accounts for approximately 75 percent of overall group revenue.

“As a result of the acquisitions made during 2006 and strong focus on the rapidly growing wireless communications marketplace, IQE has started to deliver on its strategy and expected financial benefits,” said Dr Drew Nelson, IQE’s chief executive.

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