IQE, the U.K. supplier of compound semiconductor wafer products, has revised its expectations for the recovery of the semiconductor industry in the second half of the year. While it anticipates some pockets of improvement, the recovery is likely to be slower than initially projected. Nonetheless, IQE remains optimistic about double-digit revenue growth in the second half compared to the first, and it aims to achieve profitability for the whole of 2023 based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Looking ahead to 2024, IQE foresees further improvement as the supply chain normalizes and demand rebounds. In its efforts to manage costs effectively, the company has implemented measures such as headcount reductions and savings on nonlabor expenses. Additionally, IQE is actively reviewing its global footprint to optimize operations.
In terms of financial performance, IQE reported a pretax loss of £21.5 million ($26.8 million) for the first six months of this year, compared to a loss of £8.5 million in the same period last year. The company also experienced a significant decline in revenue, with figures dropping from £86.2 million to £52.0 million. These declines were evident across both its wireless and photonics operations.
IQE’s adjusted EBITDA for the first half of this year swung from a profit of £12.3 million to a loss of £5.7 million.