IQE PLC Iqe Plc : Trading Update - Iqe Reports Financial Performance Is On Track To Exceed Full Year Expectations.
14 December 2016 - 7:00AM
UK Regulatory
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 +44 (0) 29 2083 9400
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)
+44 (0) 20 7418 8900
Richard Kauffer
Capital Access Group (PR Advisers) +44 (0) 020 3763
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)
Copyright (c) 2016 Dow Jones & Company, Inc.