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IQE PLC - Cardiff, Wales-based semiconductor wafer maker - Sales and profit will undershoot management's prior forecasts by 8% and 17%, adjusting for currency movement, IQE says in trading update, citing softening in demand in the fourth quarter. It now expects 2021 revenue to be about GBP152 million. This is about GBP164 million at constant currency, an 8% decline from 2020. Adjusted earnings before interest, tax, depreciation, and amortization is seen at about GBP18 million, which is about GBP25 million at constant currency, down from GBP30.1 million in 2020, and represents a margin of 15%, narrowed from 17% in 2020.
Interim Chief Executive Phil Smith says: "Whilst it is disappointing that 5G infrastructure deployments have remained weak all year, we still expect this macro trend to provide a multi-year growth cycle for IQE. In the immediate term, broader semiconductor market shortages have softened demand in some supply chains but we believe these effects to be temporary and remain excited by the opportunities ahead."
Current stock price: 37.60 pence, down 25% on Wednesday
Year-to-date change: down 49%
By Tom Waite; thomaslwaite@alliancenews.com
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