IQE swings to loss in first half

IQE said on Tuesday that it swung to a loss in the first half as the recovery in the semiconductor industry is taking longer than expected.

In its unaudited results for the six months to 30 June, the chip components maker reported a core loss of £5.7m, versus a profit of £12.3m in the same period a year earlier. Adjusted operating losses widened to £19.6m from £7.4m and revenue slumped to £52m from £86.2m.

Wireless revenue fell 52% to £22.4m, largely as a result of weakness in global handset demand and supply chain inventory build. Meanwhile, revenue in the photonics segment was down 27% at £28m, mainly due to softness in the handset market and a slowdown in Asian telecoms infrastructure programmes.

IQE said: "The current temporary semiconductor industry downturn is stabilising, with continued pockets of recovery expected in H2 2023, albeit more slowly than anticipated at the time of the FY 2022 results.

"Improvement is expected in 2024 as the supply chain normalises and customer demand recovers."

The company expects double-digit revenue growth in the second half versus the first, and to be profitable at an adjusted EBITDA level for FY 2023.