IQE profit melts in H1 2012

Sep 26, 2012 - UK-based semiconductor wafer maker IQE (LON:IQE) today reported retained profit of GBP 102,000 (USD 165,000/EUR 128,000) for the first half of 2012, down from GBP 3.1 million a year ago.

Earnings per share adjusted for share based payments fell to GBP 0.0013 from GBP 0.0071, while earnings before interest, tax, depreciation and amortisation (EBITDA) shrank to GBP 4 million from GBP 6.1 million.

Gross margins fell to 16% from 22% as a result of a sales decline and operational gearing. Revenues totalled GBP 34.3 million, down from GBP 38.3 million, hit by an inventory correction by two key customers of the company during the first quarter. IQE, however, said that demand had returned to expected levels in the second quarter and that the second half had started well.

IQE said that two complimentary deals struck in the first half provided basis for accelerated growth. The company acquired a 9% stake in US concentrating photovoltaics (CPV) firm Solar Junction Corp, in line with a strategy to become a global supplier of CPV wafers for the solar power markets. The acquisition of a wafer factory in the USA from sector firm RF Micro Devices Inc (NASDAQ:RFMD), meanwhile, has given IQE additional manufacturing capacity, reinforcing its position as a wafer supplier to the wireless industry and providing capacity for the production of CPV solar wafers, according to the announcement.

(GBP 1.0 = USD 1.617/EUR 1.258)

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