First half revenue falls 17% at IQE

22nd Jul 2014 11:33

Semiconductor wafer products and services supplier IQE fell sharply after first half revenue declined 17%, hit by the strength of sterling and wireless destocking. However, the group is still on track to meet its full-year expectations after a combination of efficiency gains, economies of scale and the sales mix improved profitability. The AIM-listed firm explained that revenues were negatively affected by destocking at a number of major customers due to softness in the handset market at the end of the year and into the start of 2014. Together with the effects of currency translation, first half revenues are expected to total £52m, compared to £63m in the same period in 2013. At constant currency, sales declined around 10% year-on-year.Chief Executive Dr Drew Nelson said: "IQE is in good shape and our expectations for the year remain positive. The improvement in profitability reflects the work we have done to improve efficiencies and deliver economies of scale. We remain on track to deliver further synergies during the second half." Shares had declined 13.04% to 20p by 11:30.NR