Interim Results for the Half Year Ended 30 June 2006

30 August 2006
 

“Continuing Growth for 2006”

IQE plc (the Group), the leading global supplier of customised wafer products and outsourced wafer services to the semiconductor industry, is pleased to announce its Group Interim Results for the half year ended 30 June 2006.


KEY POINTS

• Half year revenues of £14.591m up 30.0% compared with sales of £11.225m in H2/2005 and up 51.0% compared with sales of £9.665m in H1/2005

• Gross profit of £1.313m compared with gross loss of £0.194m in H2/2005 (gross profit of £1.543m after crediting exceptional items with no cash impact of £1.737m) and gross loss of £0.599m in H1/2005

• Operating loss of £1.450m reduced by 50.9% compared with operating loss of £2.956m in H2/2005 (operating loss of £1.219m after crediting exceptional items with no cash impact of £1.737m) and operating loss of £3.110m in H1/2005

• EBITDA loss of £0.768m, as calculated in the Consolidated Profit and Loss Account, reduced by 68.8% compared with EBITDA loss of £2.463m in H2/2005 and EBITDA loss of £ 2.043m in H1/2005 as a result of increased revenues, tight cost control, cost reduction measures and continued improvements in operational efficiencies

• EBITDA improvement of £1.695m compared with H2/2005 on revenue increase of £3.366m demonstrates the high level of operational leverage of the Group’s business model

• Net cash outflow from operating activities of £3.435m increased by 76.6% compared with net cash outflow from operating activities of £1.945m in H2/2005 and closing half year end cash at £1.193m (H2/2005: £6.245m) due mainly to working capital increases as a result of strongly increasing revenues

• All markets for the Group’s products showing solid, sustainable growth, with the wireless marketplace particularly strong

• Won an additional two year extension of effective exclusivity to largest outsource contract
  In August, the Group completed the acquisition of the Electronic Materials Division of EMCORE Inc., making it the leading outsource supplier of advanced wafers to the global semiconductor industry.

The 2005 results shown above have been restated for the adoption of FRS 20 where applicable

Commenting on the results, Dr Drew Nelson, President and CEO, said "As expected, the first half of 2006 has demonstrated continuing growth in all key market sectors. We have continued to build on our reputation for technical excellence and highly cost effective outsourcing as evidenced by the two year extension of exclusivity to our largest outsource contract. With the recent acquisition of EMD providing the Group with a complete portfolio of advanced wafer products, we will take full advantage of the strong market conditions“
 

DOWNLOAD FULL REPORT (PDF) [79kb]

 

Contacts

IQE plc +44(0) 29 2083 9400
Dr Drew Nelson, President & CEO
Stuart Hall, CFO
Chris Meadows, Investor Relations
 

Buchanan Communications +44 (0)2074-665000
Tim Thompson

Nicola Cronk
 

Noble & Company Limited +44(0) 20 7763 2200
John Llewellyn-Lloyd
Graeme Bayley