IQE expects £73m in revenue for H1 2018 (H1 2017: £70m), which was achieved against a currency headwind of 9.5%.
On a constant currency basis, the Wireless segment grew by a strong 11% YoY in H1 2018. Similarly, the Photonics segment is expected to grow by a significant 30%. The Infrared also grew 11%.
In a separate release, IQE announced that its Wireless Business Unit renewed the major contract for a further 15 months (to be worth approximately $60m through to September 2019.) with Tier 1 Customer for the supply of wafer products used in wireless application. This contract guarantees IQE approximately 80% of the customer’s demand for epiwafers. As a consequence of this contract, Board has approved a Wireless expansion programme for plant in Hsinchu, Taiwan to increase Wireless capacity by more than 40% in 2019.
IQE continues to trade in line with current market expectations; its June AGM statement provided a guidance of a 40:60 H1:H2 2018 revenue split remaining unchanged, accompanied by a shift back from Wireless to Photonics, which already began in June 2018.
Dr. Drew Nelson, IQE’s CEO, said: “The H2 2018 ramp for Photonics has already started and we look forward to the rest of 2018 and in particular the further ramp up which is expected in 2019, with considerable anticipation.”