IQE PLC (LON:IQE), the supplier of materials to the semiconductor industry, said trading in the first quarter of 2020 was a bit better than expected.
The company added that the outlook remains positive for the current quarter.
The company released its delayed results for 2019 that showed it had fallen into the red, with a loss before tax of £35.1mln compared to a profit of £1.2mln the year before.
Adjusted underlying earnings (EBITDA) declined to £16.2mln from £26.4mln the previous year on revenue that declined to £140.0mln from £156.3ln in 2018.
The company issued the usual caveats about the uncertain outlook in the current environment but pledged that investment in research & development (R&D) will continue, although spending on property plant and equipment will significantly reduce in 2020 to less than £10mln.
The company has earmarked up to £10mln for spending on R&D.
The company ended 2019 with net debt of £8.4mln, compared to net funds of £20.8mln at the end of 2018.
“IQE remains well-positioned to withstand the near-term uncertainty, and we are confident our technology will be a critical part of the world’s technologically driven future,” said Drew Nelson, the chief executive officer of IQE.