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WiFi and handset growth offsets infrastructure weakness at IQE

By Josh White

Date: Wednesday 14 Jul 2021

WiFi and handset growth offsets infrastructure weakness at IQE

(Sharecast News) - Semiconductor wafer and materials manufacturer IQE said on Wednesday that trading in its first half was in line with management expectations, with continued strong growth in wireless products for 5G handsets and WiFi 6 routers offsetting a year-on-year reduction in wireless products for 5G infrastructure.
The AIM-traded firm said revenue in the six months ended 30 June was expected to be around £79m on a reported basis, consistent with its previously-issued guidance at a constant currency equivalent of £87m, down from £89.9m a year earlier.

Adjusted EBITDA was also expected to be consistent with its guidance, at a constant currency equivalent of about £16m, compared to £16.4m a year earlier.

The board said IQE was still making "good strategic progress", improving its competitive position in each of its core product areas and geographies, and bringing new products to market.

It said the search for a new chief executive officer was at an advanced stage.

"I am pleased to provide an update to the market in line with our expectations," said current CEO, Dr Drew Nelson.

"I am also pleased with our strategic progress across the business during the period.

"In the short term, the nature and volume of 5G infrastructure rollouts remains a headwind, in contrast to the continuing strength in demand for products for 5G handsets and WiFi 6 routers."

Dr Nelson said 5G would be a multi-year cycle, adding that he was "excited" that the medium and long-term prospects for the macro trend were strong.

"IQE is exceptionally well-positioned to benefit from that future growth."

At 0831 BST, shares in IQE were down 0.94% at 47.5p.

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