IQE (IQE); expects revenue for the year of no less than £156m

Published on 25-01-2019 08:56:56
Author Sparks Team

On 24 January 2019, IQE has agreed a new three year $35m multi-currency revolving credit facility provided by HSBC. This facility is secured over the assets of IQE and bears an interest rate margin of between 1.45% and 1.95% per annum over LIBOR on any drawn balances. This facility is currently undrawn.

The company also expects an additional exceptional charge of approximately £4.5m related to an onerous lease accounting provision for the period through to the end of the lease in Q2 2022, for the unused and unlet space in its Singapore facility. However, this provision has no impact on cash.

For FY18, IQE expects revenues of no less than £156m against last year’s £154.5m. The company expects adjusted EBITDA of at least £27.5m (FY 2017: £37.0m).

Dr Drew Nelson, IQE’s CEO, said: “It is of course very disappointing that a substantial inventory correction in the first half of 2018 and the sudden disruption in a significant supply chain and short-term demand for VCSEL wafers in November materially impacted our expected 2018 revenues and profitability.”

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