IQE PLC IQE plc: Trading Update (3661S)
March 09 2023 - 2:00AM
UK Regulatory
TIDMIQE
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 GBP30m 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
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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END
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