As a result of changing market conditions, IQE expects revenue for FY18 to be approximately £160m compared to £154.6m reported during FY17. The group reported H1 2018 revenue of £73.4m.
Based on a notification received on 12th November 2018, IQE has confirmed that a major chip company had received notice from one of their largest customers for 3D sensing laser diodes that they would materially reduce shipments for the current quarter.
Due to the impact of this announcement the company expects photonics wafer revenue growth for FY18 to be approximately 11% (previous guidance: 35% to 50%) on a constant currency basis. Based on early initial indications the group also expects to reach guidance of 40% to 60% revenue growth in FY19.
The group expects wireless wafer revenues for FY18 to grow at 8% on a constant currency basis, which is above top end of the 0% to 5% revenue growth guidance given in the company’s H1 trading statement.
Infrared wafer revenues are also expected to grow at or exceed the top end of the current CAGR guidance range of 5% to 15% for FY18 and remain in the 5% to 15% range for FY19. Adjusted EBITDA for FY18 is expected to be approximately £31m.