IQE interims: first half acquisitions provide powerful platform for accelerating growth
26 September 2012
First half acquisitions provide powerful platform for accelerating growth
Cardiff, UK. 26 September 2012: IQE plc (AIM: IQE, “IQE” or the “Group”), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, announces its half year results for the six months to 30 June 2012.
FINANCIAL HIGHLIGHTS - Revenues £34.3m (H1 2011: £38.3m) - EBITDA £4.0m (H1 2011: £6.1m) - Operating profit £0.2m (H1 2011: £3.0m) - Adjusted basic EPS* 0.13 pence (H1 2011: 0.71 pence) - Basic EPS 0.02 pence (H1 2011: 0.60 pence) - Net debt £7.5m (Dec 2011: £3.9m)
BUSINESS HIGHLIGHTS - Demand returns to expected levels after inventory correction in the first quarter - Two transformational and complementary transactions position Group for accelerating growth and cash generation + Solar Junction Corporation – strategic investment and supply agreement with leading edge Concentrated PhotoVoltaic (“CPV”) cell developer + RF Micro Devices (“RFMD”) – acquired in-house MBE epitaxy manufacturing unit, secured supply agreement - Tool installation for Solar Junction remains on track as market demand continues to gather pace - Completed full integration of newly acquired epitaxial operation in North Carolina - Sales commence on new BiHEMT qualifications - Extending IP portfolio with additional patent filings - Capex programme nearing completion
*Adjusted EPS – EPS before non-cash share based payment charges
Dr Drew Nelson, IQE Chief Executive, said:
“The inventory correction by two major customers concluded after the first quarter as expected. The second half has started well and demand has returned as expected with the additional benefit of our newly acquired North Carolina business from RFMD.
“The transactions with Solar Junction and RFMD represent significant milestones in the execution of our growth strategy and will significantly enhance both our short and long term growth. They are highly complementary, extending our critical mass and global leadership in wireless, and bringing additional capacity to service the emerging high growth CPV market.
“Given IQE’s strategic positioning and with our international capacity expansion programme nearing completion, we remain confident of meeting current earnings expectations for the full year and of the Group’s exciting longer term growth prospects.”
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IQE plc (+44 29 2083 9400) Drew Nelson Phil Rasmussen Chris Meadows
Espirito Santo Investment Bank (+44 20 7456 9191) Richard Crawley James Bromhead
Canaccord Genuity (+44 20 7050 6500) Simon Bridges Cameron Duncan
College Hill (+44 20 7457 2020) Adrian Duffield Kay Larsen
Note to Editors IQE is the leading global supplier of advanced semiconductor wafers with products that cover 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 mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite communications; optical communications, optical storage (CD, DVD), laser optical mouse, laser printers & photocopiers, thermal imagers, leading-edge medical products, barcode, ultra high brightness LEDs, a variety of advanced silicon based systems and high efficiency concentrator photovoltaic (CPV) solar cells.
The manufacturers of these chips are increasingly seeking to outsource wafer production to specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market.
IQE also provides bespoke R&D services to deliver customised materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way IQE's outsourced services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.
IQE operates a number of global manufacturing and R&D facilities: Cardiff, Milton Keynes and Bath in the United Kingdom; Bethlehem, Pennsylvania, Somerset, New Jersey and Spokane, Washington in the USA; and Singapore. The Group also has 11 sales offices located in major economic centres worldwide.