IQE and GaAs thriving in Wales
Fine news from hi-tech company IQE which has bucked the general downbeat economic picture by revising upwards its profits forecast. The global supplier of advanced semiconductor wafer products and wafer services to the semiconductor industry, will announce its interims of September 2 and said it is continuing to trade strongly.As a result its board said that group’s performance will be ahead of market expectations, with it expecting to achieve revenue for the first half of its curernt finnancial year around £30m and Ebitda (before exceptional items) of at least £3.3m
This reflects organic growth in revenues and EBITDA of over 26% and 115% respectively compared with the first half of 2007. Robust working capital management and strong cash conversion has contributed to cash balances in excess of £1m as at 30 June 2008. With a further £9m of working capital facilities available, the Board considers IQE well placed to fund further growth.
The financial performance reflects the continued and increasingly successful execution of IQE’s strategy. The Group has developed a market leading position, with significant competitive advantages in high growth markets. In particular, IQE’s multi-site global manufacturing capabilities and its technology leadership, have enabled it to increase its share of the fast growing high speed 3G wireless communications and mobile broadband markets.
This follows its sole supply contract with a major US wireless chip maker, which is expected to generate revenues of approximately $20m over the next two years and a record $20m order book from its New Jersey facility, following the influx of orders from a number of major customers. IQE said it is continuing to bring on line additional capacity at several locations as demand continues to thrive.
CEO Dr Drew Nelson, said:“The rapidly growing demand for our products is being fuelled in part by a number of significant factors in the wireless communications marketplace. Firstly, the advanced features, higher performance and low power consumptions that are enabled by the use of gallium arsenide mean that the volume of our products being used in handsets and other wireless devices is growing substantially faster than the overall handset market.
"Secondly, the growth in wireless communications in emerging markets is driving additional demand for feature rich handsets with advanced features and efficiencies made possible by our products. Thirdly, competing technologies and protocols are being consolidated within hardware by building multiple components in handsets to enable greater compatibility between new and emerging wireless standards.
“Together, these factors contribute to a substantially growing demand for gallium arsenide based components, and we have seen no evidence of any let-up in the demand from any of our key customers in the wireless marketplace. In addition we have a range of new technologies we are currently in the process of bringing to market, including highly efficient solar cells, ultra high brightness LEDs [light emitting diodes] for lighting, and advanced microprocessor and memory products.
“The Board is confident that the continuing bouyant market conditions and our robust strategy will ensure that we remain on course to deliver strong growth in revenues and profits for the full year.”
Source: http://www.walesonline.co.uk