H1 2018 Post-close Trading Update and notice of results
24 July 2018
Very significant expansion of VCSEL engagements and successful replenishment of wireless inventory
Cardiff, UK. 24th July 2018: IQE plc (AIM: IQE; "IQE", the “Company” or the "Group"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, provides a trading statement for the six months ended 30 June 2018.
The Group announces that it expects to deliver revenues of approximately £73m for the first half of 2018 (H1 2017: £70m), which was achieved against a currency headwind of 9.5%, reflecting strong double-digit sales growth on a constant currency basis in each of its three primary markets.
The Wireless segment has shown strong growth of nearly 11% on a constant currency basis, when comparing it with H1 2017, as the Group delivered on its intention to replenish wireless inventory channels following the capacity allocation made to VCSEL production in H2 2017. The Wireless segment remains in a strong position and as described in the additional announcement made today, has been underpinned by the renewal of the supply agreement with our largest customer. This contract has been extended for a further 15 months’ supply in addition to expanding to cover a wider range of products and increased share of the customer’s epiwafer requirements to IQE. As a consequence of this extended agreement, together with additional qualifications recently completed with other Wireless customers, the Board has approved a Wireless expansion programme for our plant in Hsinchu, Taiwan with the aim of increasing Wireless capacity there by more than 40% in 2019. This will have two benefits; (i) delivering further production efficiencies and capacity improvements in the US for Photonics materials, and (ii) eliminating cost inefficiencies incurred in converting and re-converting reactors between the two materials systems.
The Photonics segment is expected to deliver significant growth of 30% on a constant currency basis for the first six months of the year, when compared with H1 2017. Revenue from our largest Photonics customer was broadly flat when compared with H1 2017, as the supply chain absorbed inventory following a very successful and steep production ramp up for VCSELs relating to a 3D sensing application in H2 2017. Excluding revenue from this customer, underlying Photonics revenues are up approximately 40% on a constant currency basis when compared with H1 2017. This is a clear demonstration of the traction the Company is experiencing across a number of VCSEL chip manufacturers, who took advantage of capacity availability to embark on a significant number of production qualifications, in addition to growth in other parts of our Photonics business.
The Infrared segment also delivered growth of approximately 11% on a constant currency basis, when compared with H1 2017 and is expected to show further strong growth in H2.
The capa
By the short and curlies,
It’s crazy really, just considering they make large sums of cash shorting some of they’re shares, would they make much more by allowing it to rise to the great heights previously seen.?
After all they keep hold of more than they lend out.
Zed44
Of course, how stupid am I :-). I thought it didn’t move at 3pm as expected........
Only 1.4 million shares traded so far today, this usually reaches around 3.5 -4.5 million by this time of the day, and at these prices I would have thought an idea opportunity for the shorters to buy back unless that is they will drive it down further.?
Let’s see where it goes at 3pm when the yanks join the game!!!!!
Fingers crossed it goes north.
Don’t bank on that my friend .
Let’s all keep our fingers crossed they struggle to buy back and get shafted.
We’ll roll on 3pm
Me x5 now 1.3m
900k more buys than sells and still we remain below the £1
This is taking the pis!
Well with only 3.5m shares traded and only 850 transactions the shorters appear to be in now mad rush to close they’re posistions , we do avarge 8-9 million per day of late.
Let’s wait and see what tomorrow brings.
FattyR
Here’s hoping you get a really nice big present , as I will have an identical one also.:-)
I was not expecting this drop on such low volumes of trade, yesterday’s after hour trades were predominantly buys!!! Let’s hope we have a pull back later on today.
FattyR At 13.18 I bought an additional 10000 shares and these have not shown up here as yet , don’t always trust what you see!!! Regards
Planitearth Each six inch waver will hold / produce up to 60000 chips each, they also have the capabilities to produce 12 inch wavers, but the six inch is our market at this time. Regards
Masaimara Let�s just hope somebody from the communications side of the company reads your story, I�m sure if it was as bad as you state they will get some formal complaints, they can�t domuch about a plane breaking down, better safe than sorry. But as to the lack of information and the constant back and forth to the gate is unacceptable and very unprofessional from a company who portrays itself as customer friendly. Atvb
Borgy74 Not a million miles away!,,Been there several times over the years. Beautiful place. I�ve got a buy order placed if it drops a fraction more, fingers crossed though it doesn�t and heads north when the yanks tune in at three PM
One hell of a drop over a minute in time, I did have a buy in at �1.10 after selling at �1.17, this trade went through at �1.07 which was good for me but overall we took a kicking there .
That explains why then,, hope I�m not missing out on any opportunity to trade?
I�m logged into my HARGREAVES LANSDOWN account and these are all to hell also, all my holdings are all over the place, also looked ISE share price on google search, same there, could it be the stock exchange having issues, nothing on the news?
Its not only LSE, having issues