IQE loses a third of its value on trading update
The price of shares in IQE plc (Cardiff, Wales), a leading supplier of compound semiconductor wafers, fell by a third after the company issued a trading update.
The fall in the share price wiped more than £130 million off the company’s market capitalization, taking the company valuation down to about £250 million.
In its note the company said the outlook for the 1H23 was characterized by an acceleration of weaker demand. This was leading to inventory build-up throughout the supply chain.
“This reduction in customer orders and forecasts is expected to result in a decline of approximately £30 million in reported revenues for 1H23 year-on-year,” the company said in its statement. The softeness is expected to lift in 2H23 with a return to year on year growth.
The company said that its financial year 2022 results remain line with a previous update given on January 16. For the FY22 IQE expects annual sales revenue of £166 million, up about 8 percent on the previous year.
The company’s shares had been trading at about £0.46 each on Wednesday but after the note was issued the shares opened on Thursday at £0.36 before drifting below £0.30.
IQE is one of the UK companies urgently waiting for the publication of the UK government’s semiconductor strategy. This is expected to be announced in the next few days.
Related links and articles:
News articles:
UK could lose wafer maker IQE over delayed chip strategy
IQE has vision for billion-pound foundry in Newport
UK chip strategy will include taxpayer funding
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
