IQE plc Trading update: IQE REPORTS FINANCIAL PERFORMANCE IS ON TRACK TO ACHIEVE FULL YEAR EXPECTATIONS <Origin Href="QuoteRef">IQE.L</Origin>

IqeAnnouncement

16/12/2015 07:10

Cardiff, UK. 16 th December 2015: IQE plc (AIM: IQE; "IQE", the "Group"), the
leading global supplier of advanced wafer products and wafer services to the
semiconductor industry, today announces an  update on current trading and
confirms its expectations for the year ending 31 December 2015. 
 
 Trading update 
 The Group announces that it is on track to achieve year on year revenue
growth, with H2 revenues expected to be up sequentially over H1. The widely
reported weakness in the mobile and smartphone markets has impacted wireless
wafer sales in the fourth quarter, but this has been offset by higher
non-wireless revenues, including from photonics and technology licensing,
demonstrating the increasing robustness of IQE's business model. 
 
 This has given the Board the confidence that financial performance for the
full year remains in line with its expectations, which should result in net
debt of approximately £25m by 31 December 2015. 
 
 Market update 
 Key wireless customers' market updates have reflected mixed performance in
the second half of 2015, and a number of recent company announcements have
highlighted broad weakness within the mobile and smartphone segments. 
Nevertheless, the outlook for 2016 and beyond remains positive due to
increasing global connectivity and the continuing growth in data traffic. 
 The photonics business has continued to perform strongly, delivering
significant double digit revenue growth. This growth is being driven by a
wide array of end market drivers including data centres, optical
communications, and a broad range of sensing applications. 
 
 InfraRed and CMOS++ have also performed well, in line with expectations, and
first pilot production revenues were generated from Solar.  During 2015 the
Group entered into two joint venture arrangements, in Singapore and the UK. 
These ventures have started positively, and IQE has licensed additional IP
during H2 to enable the acceleration of the Joint Venture business plans. 
 
 IQE is continuing to explore additional licensing opportunities to take
advantage of the increased IP portfolio it has acquired and developed during
the last two years. 
 
 As a consequence, the Board remains confident that the Group is on track to
achieve its financial expectations for the full year.  The group will report
its full year results for 2015 on 22 March 2016. 
 
   
 Dr Drew Nelson, Chief Executive of IQE, said: 
 
 "The results reflect continued delivery of our revenue diversification
strategy.  Despite areas of weakness in the wireless market during the final
quarter, the Group has been able to mitigate the impact through higher
revenues in other areas of the business. 
 
 "In line with its strategic plans, the Group is continuing to develop a broad
IP portfolio through both internal development, and selective transactions
such as the recent cREO deal.  These foundations are increasingly enabling
growth across the diverse markets for compound semiconductor technologies,
including Photonics, Solar, Power, InfraRed and CMOS++.  This is also
creating  complementary IP licensing opportunities.  As a result, the Board
remains confident of continued growth in our business." 
 
 Contacts: 
 
 IQE plc +44 (0) 29 2083 9400 
 Drew Nelson 
 Phil Rasmussen 
 Chris Meadows 
 
 Canaccord Genuity + 44 (0) 20 7523 8000 
 Simon Bridges 
 Cameron Duncan 
 
 Peel Hunt +44 (0) 20 7418 8900 
 Richard Kauffer 
 Euan Brown 
 
 Capital Access Group +44 (0) 20 3763 3400 
 Simon Courtenay 
 Harry Rippon 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: IQE plc via Globenewswire 
 HUG#1973888