In reporting its financial results for 2011, IQE noted that in spite of H2 inventory correction, the company had come out ahead in several areas, including revenues. 2011 revenue was US$119.16 million (£75.3 million) over 2010’s US$115.05 million (£72.7 million), representing a 4% increase. Additionally, the company saw gross margins up from 22.8% to 24.1% and an EBITDA that grew 6% from US$20.73 million (£13.1 million) in 2010, to US$22.15 million (£14 million) in 2011.
IQE advised that it has made significant strides on qualification programs to buttress continued revenue growth throughout its customer base and that its capacity expansion was going successfully and providing customers with confidence in the company’s availability to meet increasing demand.
Dr. Drew Nelson, IQE CEO noted, “Our strong growth momentum was temporarily impacted in the fourth quarter by inventory corrections at two of our major wireless customers. Despite this, I am pleased to report a year-on-year increase to record revenues and profits. These inventory corrections continued into the first quarter, but as anticipated, customer forecasts now reflect a return to growth as expected for Q2 and onwards.
“New product qualifications have progressed very well, with newly qualified products now ramping into production and other qualifications nearing completion. Furthermore, our capacity expansion programme remains on track, which is providing customers with a high degree of confidence in IQE as a key supplier as they keep their allocation of supplier shares under review.
“Our optoelectronics business has a number of near term opportunities which have progressed well during 2011 and which could result in a number of key products ramping to volume production as early as 2013. Following the year end, we announced a strategic investment in Solar Junction Corporation and an exclusive long-term supply agreement, a move that will accelerate our penetration into the exciting, third generation CPV solar market.
“The Board remains confident that IQE is well positioned for strong growth in 2012 and beyond.”