IQE moves in to profit -

IQE moves in to profit


LONDON — IQE plc, a supplier of advanced wafer products and wafer services to the semiconductor industry, has seen revenues jump 54 percent to £50.1million (up 69 percent at constant exchange rates) for the financial year ended December 31, 2007.

Operating profit before exceptional items was £0.6million compared with a loss of £4.0million in 2006.

“2007 saw the third consecutive year of substantial revenue growth averaging 50 percent per annum and a return to operating profitability as a result of delivering on our strategy, and our clear focus on high growth markets,” said Dr Drew Nelson, IQE chief executive.

“Our major markets have continued to be driven by the increasing demand for GaAs based components for high speed, feature rich mobile devices that demand the high levels of performance and functionality that our products deliver. IQE is now widely recognised as the global market leader in advanced semiconductor wafer outsourcing,” added Dr nelson.

“Now that we are generating profits and cash from operations we have also put in place significantly enhanced banking facilities to support our continued growth.”

“We have maintained our strong growth throughout the first quarter of 2008, and continue to see robust forward demand from our customers, particularly in the high speed wireless communications sector. We are confident of another year of strong growth.”

IQE (Cardiff, Wales) increased capital expenditure to £7.8million (2006: £1.4million) as it included £2.7million relating to the purchase of property and an investment of £3.6million in additional capacity in specific areas to address growing demand for specific customers. The major items of capital expenditure were funded by £5.5million of new loans. Net debt at December was £14.2million (2006: £5.9million). Shortly after the year end, the IQE appointed Lloyds TSB Corporate Markets as its principal banker and agreed increased banking facilities of up to £15.5million for the purpose of financing growth and working capital.

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