IQE on a high after trading update

15th Jul 2010 15:25

Semiconductor wafer products operation IQE saw its shares hit a new 52-week high after it advised that its interim results are set to be significantly ahead of market expectations.The group is expecting to announce revenue of at least £32.8m for the first half of the year and earnings before interest, tax, depreciation and amortisation in excess of £5.3m. Retained profit should be £2m or more.First-half growth was driven by good recovery in the wireless market with particularly strong demand for smartphones. The group achieved higher than expected sales in the normally weak first quarter with demand accelerating in the second quarter.First half performance was also boosted by a return to growth by the group's silicon-based epitaxy services for high-performance electronic products business."The group's operationally geared model has translated strong revenue growth into even stronger growth in profits and the board remains confident of strong demand for IQE's world-leading products in the second half of 2010," said Dr. Drew Nelson, IQE's chief executive.