LONDON (ShareCast) - (Sharecast News) - Shares in British semiconductor wafer maker IQE jumped on Thursday after the company reported that 2024 profits would beat expectations.
IQE, which supplies tech giant Apple, said it now expected annual revenue of £118m and adjusted earnings before interest, taxes, depreciation and amortisation of at least £7.5m, beating a November forecast of £115m and £5m respectively.

The Cardiff-based firm, which makes parts for facial recognition sensors in Apple's iPhones, has been hit by weaker global semiconductor demand, which it had mitigated by imposing cost controls.

It also started a strategic review of assets in November as part of efforts to bolster its capital position, amid "slower than anticipated recovery in key sectors driven by weak consumer demand in end markets".

The review includes broadening of IQE's proposed initial public offering of its Taiwan operations to include all options, including a full sale.

IQE said it was encouraged by positive levels of interest from partners, and "broader recognition that the group is a technical leader across a variety of strategically important vertical markets, with a well-invested asset base".

Chief executive Mark Cubitt said a proposed financing would provide the company "with greater resilience as we continue to strengthen key customer relationships and expand further into emerging high growth areas".

"Amid ongoing macro headwinds, [interim chief executive Jutta Meier] and the leadership team have taken effective action to refocus the group on its core strengths and improve operational performance, resulting in an encouraging financial picture."

Reporting by Frank Prenesti for Sharecast.com

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