IQE trades ahead of expectations despite Covid-19 risks
British semiconductor company IQE said on Friday that first-quarter revenues were "slightly ahead of internal expectations" and Q2 trading was "strong" despite the risk of significant disruptions posed by the Covid-19 pandemic.
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IQE said production had not been affected by the outbreak, with all of the group's global sites continuing to operate with appropriate measures and controls in place.
The company expects total revenues for the first half to be at least £85m, representing a record first half and an increase of over 27% year-on-year. IQE also expects to return to profitability, with a low single-digit adjusted operating profit for the half.
Given the unprecedented levels of uncertainty caused by the coronavirus, IQE said it was unable to provide guidance for the full-year but stated that due to the economic impact of the pandemic, the smartphone handset market was expected to decline year-on-year in 2020 and cautioned of the possibility of some level of inventory adjustment in the second half.
Chief executive Dr Drew Nelson said: "Demand so far in 2020 has rebounded from the levels we experienced last year. With strength in several product areas, I am delighted that we should be in a position to report record first-half revenues.
"Considerable risk remains for the second half of the year but I am confident IQE has the resilience to navigate this dynamic and challenging environment."
As of 0910 BST, IQE shares had surged 15.96% to 45.78p.