IQE PLC on Tuesday posted improved financial results for the first half of 2024 amid a gradual recovery in the semiconductor industry with double-digit revenue growth reported.

The Cardiff-based supplier of compound semiconductor wafer products and advanced material solutions said pretax loss narrowed to £13.9 million in the six months that ended June 30 from £21.5 million a year previous.

IQE shares were down 15% at 20.18 pence each in London on Tuesday morning.

Revenue increased 27% to £66.0 million from £52.0 million, while cost of sales rose just 8.5% to £61.0 million from £56.2 million.

This was thanks to Wireless revenue, which increased by 73% to £38.8 million. By contrast, Photonics revenue slipped 4.3% to £26.8 million, and Compound materials on Silicon revenue dropped by 70% to £474,000.

Chief Executive Officer Americo Lemos said: ‘We expect the market to continue to show pockets of recovery during the second half, resulting in more moderate growth for 2024 on a full-year basis. We look forward to progressing the planned IPO of our Taiwanese subsidiary [in H1 2025], which will help to accelerate our diversification strategy’.

As part of a restructuring effort, the closure of the company’s manufacturing facility in the US state of Pennsylvania is scheduled for the second half of 2024.

Going forward, cost control action will see labour costs reduced by 10% year-on-year and non-labour costs by 5%.

Analysts expect IQE to generate full-year revenue of between £130.0 million and £153.7 million, reflecting a 13% increase at the lower end from £115.3 million in 2023.

Adjusted earnings before interest, tax, depreciation, and amortisation, are forecast to be within a £11.1 million to £16.6 million range, doubling from £4.3 million in 2023 at the lower end.

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