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(Sharecast News) - Semiconductor wafer products and advanced materials company IQE reported revenue of £79.5m in its first half on Tuesday, representing a 2.5% year-on-year decrease at constant currency against a record first half in 2020, in line with previous guidance.
The AIM-traded firm reported a "significant" foreign exchange headwind of £8.1m affecting reported revenue in sterling in the six months ended 30 June, with the majority of revenues being earned in dollars.
Adjusted EBITDA fell to £11.6m from £16.3m, representing an in line year-on-year result on a constant currency basis, in line with its previous guidance.
Adjusted cash inflow from operations totalled £9.1m, down from £16.2m in the first half of 2020, representing adjusted EBITDA conversion of 78%.
IQE described its liquidity as "strong", as it maintained a net funds position of £0.9m, swinging from net debt of £7.4m a year earlier, with cash generated from operations used to fund the group's capital expenditure and technology development investments in the first half.
Its reported operating loss came in at £1.9m narrowing from £5.0m year-on-year, which the board said represented a £2.2m profit on a constant currency basis.
"Today's results reflect the resilience of our business and highlight the ongoing commitment and hard work of our people who have, despite additional headwinds, largely sustained the record levels of performance at IQE that we reported a year ago," said outgoing chief executive officer Dr Drew Nelson.
"In November, the company announced the search for my successor and my intention to continue in an ambassadorial and advisory role at IQE.
"As I now formally step aside as CEO, I am extremely proud of everything we have achieved at IQE to date and the critical role the business plays within the broader global industry, and Compound Semiconductor Cluster in South Wales."
Executive chairman Phil Smith said that during Dr Nelson's tenure, IQE had established a "solid platform" with "strong" market positions and global leadership in compound semiconductors.
"I share his enthusiasm for the future opportunities that lay ahead for IQE and I want to thank him for his incredible contribution to the business.
"As part of my expanded role, I will focus on the execution of IQE's strategy and preparing the business for the arrival of the incoming CEO."
At 1149 BST, shares in IQE were down 12.22% at 46.35p.
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