IQE’s interim results were largely flagged at the trading update in July. Revenue grew 2% to £53.2m (H1’14: £52.0m) with adjusted operating profit and fully diluted eps both up 5% at £6.7m and 0.9p respectively. Net debt improved to £31.1m. Customer forecasts are currently following normal second half patterns, leaving the group on course to meet our full year forecasts. Separately the group has announced an exclusive licence and option agreement to acquire Translucent Inc’s Compound Semiconductor on Silicon technology. IQE will pay a maximum of $1.5m for the licence with an option to purchase the technology for $5m within the 30 month licence period. We believe the Compound Semiconductor on Silicon market represents a significant medium term opportunity for IQE and welcome the move to expand its technology in this area.
