LONDON IQE plc., the supplier of advanced semiconductor wafer products and wafer services, has seen orders pick up sharply in May and June.
This enabled IQE (Cardiff, Wales) to achieve a strong operating performance in the first half of 2009 despite the industry wide destocking that adversely affected sales during Q4 2008 and Q1 2009.
The company's board expects that the groups first half performance will be at least in line with market expectations, with revenues of about £20.0 million (about $30 million) and EBITDA of at least £1.2 million (about $2 million).
The increase in trading activity towards the end of the first half has seen some absorption of cash into working capital, reflecting higher trading volumes. Net debt is expected to be better than market expectations of approximately £20.0 million (about $30 million) as at 30 June leaving more than £5.0 million (about $8.2 million) funding headroom.
The outlook for the second half remains positive, with the group expecting continued strong growth in sales volumes. This positive outlook, despite the continuing backdrop of global economic uncertainty, reflects its positioning in its high growth markets, principally in wireless communications, including 3G and feature rich smartphones.
The company says new product development continues with “excellent progress” in solar activities, where customers are achieving world record efficiency results, and in ultra low power LED products. Further progress on next generation electronic materials was demonstrated by the recent release of new engineered substrates such as Germanium on Insulator (GeOI) for next generation integrated circuits and devices.
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