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(Alliance News) - IQE PLC said Friday its expects to report a rise in revenue for the first half of 2020, following a first quarter that was ahead of expectations and strong trading in the second quarter to date.
Shares in IQE were 22% higher at 48.34 pence on Friday afternoon in London.
For the first quarter to the end of March, revenue was ahead of management expectations, while second quarter trading to date has been buoyed by strong performances in the Wireless and Photonics business units.
Despite the significant risk of disruption posed by the Covid-19 pandemic, the electronic wafer products supplier said its production has not been affected.
As a result, revenue for the six months to the end of June is set to be at least GBP85 million, a 27% rise from GBP66.7 million in the same period a year before.
Looking ahead, the smartphone handset market is expected to decline year-on-year for 2020, leading IQE to anticipate some level of inventory adjustment in the second half of 2020.
Offsetting this, the company said it expects to find opportunities in 3D Sensing and Wireless Power Amplifiers for 5G handsets.
However, as a result of the uncertainty in the external environment, IQE said it is unable to provide guidance for 2020 as a whole.
"The global pandemic has created enormous challenges for people, businesses and governments across the world. I am proud that in such challenging times, we have so far achieved our aim of keeping our people safe, whilst maintaining full operations at all of our global sites. This is testament to the flexibility, dedication and professionalism of the global IQE team," said Chief Executive Officer Drew Nelson.
"Demand so far in 2020 has rebounded from the levels we experienced last year. With strength in several product areas, I am delighted that we should be in a position to report record first half revenues. Considerable risk remains for the second half of the year but I am confident IQE has the resilience to navigate this dynamic and challenging environment."
By Dayo Laniyan; dayolaniyan@alliancenews.com
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