IQE PLC (LON:IQE) shares were higher on Tuesday after the semiconductor maker swung to a profit in its first half amid what it said was a record revenue performance for the period.
For the six months ending June 30, the AIM-listed firm reported an adjusted operating profit of £4.3mln, swinging from a £1.9mln loss in the prior year, while revenues jumped 35% to £89.9mln.
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The company highlighted a return to growth for its wireless division, which saw 50% revenue growth year-on-year as 5G handset demand drove strength in chip wafers for power amplifiers.
IQE also said its business had experienced “resilience” during the pandemic, with all of its global sites continuing production with strong underlying demand in its markets as telecommunications and connectivity became increasingly important with social distancing and remote working.
Looking ahead, IQE said while it has not provided full-year guidance to date due to the “uncertainty of the global pandemic and anticipated global recession”, its performance so far in the current year has been strong and as a result, it now expected revenues for the full year of at least £165mln, equivalent to 18% growth year-on-year.
The company also said it expected to deliver “at least a mid-single digit adjusted operating profit” for the year.
“I am very proud of the results that IQE has achieved in the first half of 2020, particularly given the uncertain external environment. Building on our investments in our products, our people and our infrastructure, we have demonstrated both financial and operational resilience and have delivered record [first half] revenues”, said IQE chief executive Drew Nelson.
“IQE remains focused on executing our technology roadmap, and we are confident this momentum will continue into [the second half]. Our business remains well-placed to capitalise on opportunities in 5G mobile network infrastructure and handsets, 3D sensing in [vertical cavity surface emitting laser]-based products and a host of advanced sensing applications across a broad optical spectrum”, the CEO added.
The company’s shares jumped 2.5% to 63p in early deals.