IQE expects full-year revenues to rise on strong sales growth

21st Jan 2014 16:08

IQE, supplier of wafer products and services to the semiconductor industry, expects 2013 full-year revenue to rise 43 per cent to a record 126m on the back of sales growth.Earnings before interest, tax, depreciation and amortisation (EBITDA) is anticipated to jump to £24.5m in the year ended December 31st 2013, from the prior year's £16.4m.Adjusted fully diluted earnings per share is estimated to come to 2p, up 32% on 2012's 1.51p.The group said during the period, it achieved strong progress in photonics through a contract with Philips, saw continued growth in infrared product and made headway on power and LED materials employing gallium nitride on Silicon technology.The company's high conversion of operating profit into cash is expected to reduce net debt to below £35m at year end from £37.7m at the end of June.Trading in the second half is tipped to show sequential growth, despite weak guidance for the fourth quarter of 2013 and first quarter of 2014 from a number of IQE's wireless customers, and a strengthening sterling/dollar exchange rate."We look forward to further increasing cash flows and earnings during the current year and beyond as we maintain our strong position in wireless and continue to leverage opportunities to exploit our products in other high-growth markets," said Chief Executive Drew Nelson.Shares rose 4.81% to 27.25p at 16:24 on Tuesday.RD