REG - IQE PLC - IQE plc: Trading Update

IqeAnnouncement

09/03/2023 07:00

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RNS Number : 3661S  IQE PLC  09 March 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

IQE plc

 

Cardiff, UK

9 March 2023

 

 

Trading Update

 

 

IQE plc (AIM:  IQE, "IQE" or the "Group"), the leading supplier of compound
semiconductor wafer products and advanced material solutions to the global
semiconductor industry, provides an update on current trading.

Management's expectations for FY22 results remain in line with the update
provided on 16 January 2023. Since that update, the Group has seen an
acceleration of the trends anticipated, with weaker demand leading to
inventory build-up throughout the supply chain. This reduction in customer
orders and forecasts is expected to result in a decline of approximately £30m
in reported revenues for H1 2023 year-on-year.

Similar trends are evident across the industry, with the US Semiconductor
Industry Association (SIA) reporting that global industry sales decreased in
January 2023, down 18.5% year-on-year.

This near-term market softness is expected to be temporary and a return to
year-on-year growth is anticipated in H2 2023 based on dialogue with our
existing customers and our pipeline of new opportunities.

IQE continues to make positive progress towards the Group's strategy as set
out at the November 2022 Capital Markets Day, diversifying into high-growth
markets including Power Electronics and MicroLED. The Group has a strong
pipeline of strategic and long-term partnerships and new business
opportunities that will underpin growth in 2024 and beyond.

Americo Lemos, CEO of IQE, commented:

"The current inventory cycle is temporary. Ours is an industry that has
consistently demonstrated growth over many decades. We expect IQE to return to
growth in the second half of the year and remain excited about the future as
we continue to execute our diversification strategy."

 

Contacts:

 

IQE plc

+44 (0) 29 2083 9400

Americo Lemos

Tim Pullen

Amy Barlow

 

Peel Hunt LLP (Nomad and Joint Broker)

+44 (0) 20 7418 8900

Paul Gillam

James Smith

 

Numis (Joint Broker)

+44 (0) 20 7260 1000

Simon Willis

Hugo Rubinstein

Iqra Amin

 

Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822

Andy Rivett-Carnac: +44 (0) 7968 997 365

Antonia Pollock: +44 (0) 7789 954 356

Marta Parry-Jones: +44 (0) 7884742400

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 (as amended). This
announcement is issued on behalf of the Company by Tim Pullen, CFO.

 

ABOUT IQE

http://iqep.com
(https://www.globenewswire.com/Tracker?data=yZf7NKp1JKLALUCxlBuC8wkLnLAqoe5-kjjIlkMIDci9q9W0x_02bwZV-eorSbpLXZxy4zi3xHh-O4FM8nWjeg==)

 

IQE is the leading global supplier of advanced compound semiconductor wafers
and materials solutions that enable a diverse range of applications across:

 

·    handset devices

·    global telecoms infrastructure

·    connected devices

·    3D sensing

 

As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in
this market which has high barriers to entry. IQE supplies the whole market
and is agnostic to the winners and losers at chip and OEM level. By leveraging
the Group's intellectual property portfolio including know-how and patents, it
produces epitaxy wafers of superior quality, yield and unit economics.

IQE is headquartered in Cardiff UK, with c. 685 employees across eight
manufacturing locations in the UK, US and Taiwan, and is listed on the AIM
Stock Exchange in London.

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