15 July 2021
IQE seeing strong growth in Wireless for 5G handsets and WiFi 6 routers offsetting drop for 5G infrastructure rollouts
In a pre-close trading update for first-half 2021 (subject to external audit review), epiwafer foundry and substrate maker IQE plc of Cardiff, Wales, UK says that trading was in line with management expectations, with continued strong growth in Wireless products for 5G handsets and WiFi 6 routers offsetting a year-on-year reduction in Wireless products for 5G infrastructure.
Revenue is expected to be about £79m, consistent with previous guidance at a constant-currency equivalent of about £87m (down from £89.9m in first-half 2020).
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is also expected to be consistent with previous guidance at a constant-currency equivalent of about £16m (compared with £16.4m for first-half 2020).
IQE says that it continues to make good strategic progress, solidifying and improving its competitive position in each of its core product areas and geographies, while bringing new products to market.
“In the short term, the nature and volume of 5G infrastructure rollouts remains a headwind, in contrast to the continuing strength in demand for products for 5G handsets and WiFi 6 routers,” notes CEO Dr Drew Nelson. “5G will be a multi-year cycle and I’m excited that the medium- and long-term prospects for this macro trend are as strong as ever. IQE is exceptionally well-positioned to benefit from that future growth,” he believes.
After co-founding IQE in 1988, Nelson announced last November that he is relinquishing his role as CEO (while becoming a board member with the title of president, acting in an advisory and ambassadorial role). The firm says that a search for a new CEO is at an advanced stage.
IQE’s revenue grows 27% to a record £178m in 2020
IQE reports record first-half revenue of £89.9m