EPIC members in the News

IQE announces £3.0m operating profit in 2009

IQE plc, the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, publishes audited results for the year ended 31/12/2009.

Strong H2 secures £3.0m full year operating profit for IQE and £3.7m free cash flow.

Operational highlights
  • Fulfilled goal of qualifying with all major wireless chip manufacturers
  • NanoGaN acquisition brings valuable IP, accelerates high power LED and blue/green laser development
  • Significant new patents in solar and advanced electronics secured

Dr Drew Nelson, IQE Chief Executive, said: “We made excellent progress in 2009 on all fronts; strategic, operational and financial. We continue to build on our market leadership, and by continued investment in R&D throughout the downturn. We now have a product range that addresses almost all of the rapidly growing markets for compound semiconductor materials. We demonstrated a high degree of operational and financial resilience through a challenging year thanks to proactive management, and a committed and professional workforce. This has enhanced our customers’ confidence in us and builds on the strong relationships that we enjoy with them. We believe that this positions us well to continue to grow our market share".

“I am extremely pleased with our progress on developing intellectual property for the solar power and advanced electronics markets. These advances are keeping us at the forefront of emerging markets, and give me confidence that we will emerge as a clear leader as these markets move from development phase into production. “We are at a very exciting time in the Group’s history. We continue to make excellent progress in our core wireless business, whilst at the same time are building an IP rich advanced semiconductor ‘power house’ that is uniquely positioned to take advantage of the high growth markets that are rapidly emerging in areas such as solid state lighting (SSL), CPV solar cells and consumer electronics. We are confident that IQE is well positioned to achieve continued growth in sales in 2010.”

Financial highlights
  • Record H2 revenues of £31.2m result in full-year revenues of £52.7m (2008: £60.5m)
  • Sequential revenue growth of 46% in H2 demonstrates strong recovery after industry wide inventory adjustments in H1
  • Improved efficiency boosts gross margins to 22% resulting in £11.6m of gross profit (2008: 19%, £11.8m*)
  • High operational gearing and tight cost control delivers second half EBITDA of £6.1m; full year EBITDA £8.1m (2008: £8.4m*)
  • Pretax profit £2.1m (2008: loss £1.4m)
  • Basic EPS of 0.47p (2008: loss 0.32p per share)
  • Capital expenditure of £1.4m (2008: £6.6m); normal maintenance levels following conclusion of 2008 major capital programme
  • Strong trading performance and cash management generated free cash flow* of £3.7m (2008: 0.7m)
  • Net debt reduced to £14.9m (2008: £18.1m)

* Stated before exceptional costs and cash flows relating to relocation and restructuring undertaken in 2008

The full report may be downloaded from the IQE website: www.iqepl.com

IQE plc
+44 29 2083 9400
Drew Nelson, Phil Rasmussen, Chris Meadows

« Back to news list