IQE first half growth driven by wireless growth

20th Jul 2015 12:07

(ShareCast News) - Semiconductor wafer maker IQE said 2% revenue growth in the first half of the year was driven by strong revenue growth in its wireless market.Revenues rose 2% to £53.2m and adjusted operating profit increased 5% to £6.7m, while the AIM-listed group managed to reduce its borrowing during the period.The group said the wireless arm was enjoying a strong outlook thanks to the new flagship smartphone platforms, growth in sales to China and upgrades to 4G, with the wireless business providing a "stable platform" to leverage strong and sustainable growth in the photonics business.However, temporary production disruption suffered by one customer during the second quarter will have an impact in sales into the third quarter.Chief executive Drew Nelson said: "This was a solid start to the year, in which we delivered continued improvement in our financial results and further reduced our borrowings."We are making encouraging progress in advanced solar and power switching, both of which we believe will be high growth markets for IQE in the near future."Nelson added the the second half has started well, and believes IQE is on track to meet expectations and deliver continued growth in profits and cash generation.Shares were up 0.68% to 23.91p on Monday at 11:17.