IQE ends first half in line with expectations

Semiconductor wafer and advanced materials supplier IQE said in an update on Thursday that trading in its first half was in line with management expectations.

The AIM-traded firm said revenue for the six months ended 30 June was expected to be at least £85m, up more than 7% year-on-year, on a reported basis.

With a foreign exchange tailwind, that would be in line with prior-year revenue of £79.5m on a constant currency basis.

The group said its view of the full year remained unchanged with its previously-issued guidance for low single-digit percentage revenue growth in 2022 at constant currency, with growth weighted towards the second half.

IQE said it was focussed on executing its strategy of pursuing long-term sustained growth through diversification and value creation.

Milestones achieved in the first half included the signing of a multi-year supply agreement with Lumentum, a strategic partnership agreement with Porotech, the announcement of the world's first commercially-available 200mm VCSEL, and a commitment to net zero and carbon neutrality, the board said.

Further milestones were expected for the second half, as the business was positioned for growth.

“I am pleased we have met our expectations and commitments for the first half,” said chief executive officer Americo Lemos.

“This year is about laying foundations for the healthy growth of the business, with a focus on a market approach while developing relationships with strategic customers to deliver long term growth and value to shareholders.

“We look forward to continuing with this momentum throughout the rest of the year.”

IQE said it would report its full, unaudited, interim results for the six months ended 30 June on 6 September.

At 1131 BST, shares in IQE were up 2.57% at 37.95p.

Reporting by Josh White at Sharecast.com.