IQE PLC Iqe Plc : Trading Update - Iqe Reports Financial Performance Is On Track To Exceed Full Year Expectations.

 
TIDMIQE 
 
 
   Cardiff, 14(th) December 2016:  IQE plc (AIM: IQE, "IQE" or the "Group"), 
the leading manufacturer of advanced semiconductor wafer products for 
the global semiconductor industry, today announces an update on current 
trading and its outlook for the year ending 31 December 2016 ("FY 
2016"). 
 
   Since the announcement of its interim results on 13 September 2016, 
IQE's trading has continued to be strong across multiple markets, 
particularly in the photonics business. As a consequence, the Group 
announces that it is on track to deliver FY 2016 revenue and adjusted(1) 
operating profit ahead of expectations.  It is anticipated that revenues 
will reflect a double digit rate of growth year on year, and that H2 
revenues will be up sequentially over H1. 
 
   The wireless business has largely performed as expected through 2016 and 
remains on track for year on year growth.  Photonics continues to be the 
fastest growing business segment, enjoying strong double digit growth 
year on year.  Excellent progress with customer qualifications in 
photonics during 2016 provides a solid platform for continuing strong 
growth for this business.  In response to this opportunity, the group 
has increased its capital investment in H2.  InfraRed has performed in 
line with expectations, and license income has reduced from the front 
loaded income enjoyed in 2015. 
 
   Revenues, which are primarily dollar denominated, also benefitted in H2 
from the devaluation of sterling following the UK's EU membership 
referendum on 23(rd) June 2016.  The currency impact on profitability is 
largely presentational as the majority of the Group's costs are also 
denominated in dollars.  The balance sheet impact is also presentational, 
as both non-sterling assets and liabilities will be translated at the 
year-end spot rate.  This is expected to impact positively the 
presentation of shareholder funds.  Furthermore, although the Group has 
de-leveraged its balance sheet during 2016 in underlying dollar terms, 
the presentation of this is expected to be distorted adversely in 
sterling. 
 
   As a consequence, the Board is confident that the Group will exceed 
current FY 2016 expectations for both revenue and adjusted(1) operating 
profit. The Group will report its FY 2016 results on 21 March 2017. 
 
   Dr Drew Nelson, Chief Executive of IQE, said: 
 
   "IQE has made good progress in 2016, and is performing well against its 
strategic goals.  The  breadth of IQE's technologies is a competitive 
advantage that is enabling its continued growth, and will provide a 
platform for strong cash generation over the coming years.  I would like 
to thank the management and staff of IQE whose hard work and commitment 
have made this possible." 
 
 
 
   The information contained within this announcement is deemed to 
constitute inside information as stipulated under the Market Abuse 
Regulations (EU) No. 596/2014. Upon the publication of this announcement, 
this inside information is now considered to be in the public domain. 
 
 
 
   Notes: 
 
 
   1. Adjusted measures exclude exceptional items, share based payments and 
      non-cash acquisition accounting charges. 
 
 
 
 
   CONTACTS: 
 
 
 
   IQE plc                                                                         [phone] 
 
 
   Drew Nelson 
 
   Phil Rasmussen 
 
   Chris Meadows 
 
 
 
   Canaccord Genuity (Nomad and Joint Broker)   + 44 (0) 20 7523 8000 
 
   Simon Bridges 
 
   Cameron Duncan 
 
 
 
   Peel Hunt (Joint Broker) 
[phone] 
 
   Richard Kauffer 
 
 
 
   Capital Access Group (PR Advisers)                   [phone] 
3400 
 
 
 
   Scott Fulton 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: IQE plc via Globenewswire 
 
 
  http://www.iqep.com 
 

(END) Dow Jones Newswires

December 14, 2016 02:00 ET (07:00 GMT)

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