IN BRIEF: IQE shares plunge as soft demand to hit first-half revenue

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IQE PLC - Cardiff, Wales-based compound semiconductor wafer product supplier - Says expectations for 2022 remain in-line with the update provided on January 16. However, notes that it has seen an acceleration of the trends anticipated in that update, with weaker demanding leading to inventory build-up throughout the supply chain. Consequently, the reduction in customer orders and forecasts is expected to result in a year-on-year decline of £30 million in revenue for the first half of 2023. Revenue in the first half of 2022 was £86.2 million.

‘Similar trends are evident across the industry, with the US Semiconductor Industry Association reporting that global industry sales decreased in January 2023, down 18.5% year-on-year,’ IQE notes.

Adds that the market softness is expected to be temporary, with a return to growth expected in the second half of 2023.

Current stock price: 31.68 pence, down 32% in London on Thursday

12-month change: down 16%

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