(Adds details on customer destocking, share movement))
July 22 British semiconductor materials maker
IQE Plc said its revenue slid about 17 percent in the
first-half of the year, hurt by destocking by customers due to
softness in the handset market and a strong pound.
The company's shares fell as much as 10.8 percent to 20.25
pence, making the stock the top percentage loser in early
trading on the London Stock Exchange on Tuesday.
IQE, whose products are used in microchips found in
smartphones, tablets and GPS equipment, said revenue fell to
about 52 million pounds ($88 million) in the six months ended
June 30, from 63 million pounds a year earlier.
IQE supplies core wafer technology to companies that in turn
supply large customers such as Apple Inc and Samsung
Electronics Co Ltd.
The company said in a trading update that destocking by
several big customers began at the end of 2013 and extended into
the early part of 2014, but orders had since improved.
IQE, which gets over 80 percent of its revenue from the
United States, said it expected to achieve its full-year
forecasts, helped by a pickup in orders related to the rollout
of 4G networks in China.
First-half earnings before interest, taxes, depreciation and
amortization rose about 5 percent to 11 million pounds.
($1 = 0.5856 British pounds)
(Reporting by Noor Zainab Hussain in Bangalore; Editing by Ted