IQE (IQE) H1 2024 earnings summary

Executive summary

• Revenue grew 27% year-on-year to £66.0m in H1 2024, in line with guidance, reflecting recovery in key markets and strong Wireless performance.

• Adjusted EBITDA improved to £6.6m, a £12.3m increase from H1 2023, driven by cost control and operational efficiencies.

• Strategic focus on diversification into GaN Power and microLED, with ongoing R&D investment and a planned IPO of the Taiwan subsidiary to accelerate growth.

• Wireless segment saw strong growth, while Photonics was flat or declined slightly, and CMOS/CMOS++ was deprioritized.

• Proposed IPO of IQE Taiwan aims to accelerate growth initiatives and provide additional cash resources, with listing targeted for H1 2025.

Financial highlights

• Revenue reached £66.0m, up 27% year-on-year from £52.0m in H1 2023.

• Adjusted EBITDA was £6.6m, compared to a loss of £5.7m in H1 2023.

• Adjusted EBIT/LBIT loss improved to £7.2m from £17.4m loss year-on-year.

• Adjusted net debt stood at £17.0m as of June 30, 2024, with £7.8m in cash equivalents.

• Operating cash flow improved year-on-year, with adjusted cash inflow from operations at £1.8m.

Outlook and guidance

• Full-year 2024 revenue and adjusted EBITDA expected to grow year-on-year but at the lower end of analyst forecasts (£130.0m–£153.7m revenue, £11.1m–£16.6m EBITDA).

• Market recovery is ongoing but uneven across regions and segments; full recovery anticipated in 2025.

• Continued focus on cost control, operational efficiency, and technology roadmap development.