Business
H1 2018 Post-close Trading Update and notice of...
H1 2018 Post-close Trading Update and notice of....
About this update from Iqe Plc
[{"type":"text","content":"\n H1 2018 Post-close Trading Update and notice of resultsIQE plcH1 2018 Post-close Trading Update and notice of resultsVery significant expansion of VCSEL engagements and successful replenishment of wireless inventoryCardiff, UK. 24th July 2018: IQE plc (AIM: IQE; \"IQE\", the “Company” or the \"Group\"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, provides a trading statement for the six months ended 30 June 2018.The Group announces that it expects to deliver revenues of approximately £73m for the first half of 2018 (H1 2017: £70m), which was achieved against a currency headwind of 9.5%, reflecting strong double-digit sales growth on a constant currency basis in each of its three primary markets.The Wireless segment has shown strong growth of nearly 11% on a constant currency basis, when comparing it with H1 2017, as the Group delivered on its intention to replenish wireless inventory channels following the capacity allocation made to VCSEL production in H2 2017. The Wireless segment remains in a strong position and as described in the additional announcement made today, has been underpinned by the renewal of the supply agreement with our largest customer. This contract has been extended for a further 15 months’ supply in addition to expanding to cover a wider range of products and increased share of the customer’s epiwafer requirements to IQE. As a consequence of this extended agreement, together with additional qualifications recently completed with other Wireless customers, the Board has approved a Wireless expansion programme for our plant in Hsinchu, Taiwan with the aim of increasing Wireless capacity there by more than 40% in 2019. This will have two benefits; (i) delivering further production efficiencies and capacity improvements in the US for Photonics materials, and (ii) eliminating cost inefficiencies incurred in converting and re-converting reactors between the two materials systems.The Photonics segment is expected to deliver significant growth of 30% on a constant currency basis for the first six months of the year, when compared with H1 2017. Revenue from our largest Photonics customer was broadly flat when compared with H1 2017, as the supply chain absorbed inventory following a very successful and steep production ramp up for VCSELs relati...