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(Alliance News) - IQE PLC said Tuesday it sunk to a loss in the first half of 2019, driven by a drop in revenue as a result of reduced demand and a weak smartphone handset market.
The semiconductor company said its pretax loss for the six months to the end of June was GBP3.7 million, compared to a profit of GBP6.6 million.
IQE's profit performance was hurt by higher selling, general and administrative expenses at GBP13.7 million, compared to GBP11.2 million in the prior year.
There was also revenue that declined by 9.1% at GBP66.7 million from GBP73.4 million the year before, caused by reduced demand within a slowdown in the technology market, international trade tensions, and a fall in demand from a major indium phosphide laser customer.
Looking ahead, IQE said it expects revenue to be in the range of GBP140 million to GBP160 million, compared to GBP156.3 million reported in 2018.
"I am pleased that IQE has delivered results which are in line with the trading update from June this year and to reiterate our full-year guidance, despite a number of challenging market conditions facing our industry in the first half of 2019," said Chief Executive Officer Drew Nelson.
"We remain confident in IQE's ability to adapt to global supply chain shifts and have made significant strategic and operational progress with our global expansion projects," Nelson added.
Shares in IQE were down 2.4% at 50.60 pence on Tuesday.