(Reuters) – British chip components maker IQE Plc reported a 2% drop in its annual revenue on Wednesday, hit by reduced orders amid weak demand for consumer electronics.
Revenue on a constant currency basis fell to 151.2 million pounds ($190.83 million) for the full-year ended December 2022, from 154.1 million pounds a year earlier.
IQE makes “epi-wafers”, a type of advanced material used in products from laser hair removal to facial recognition sensors in iPhones.
The Cardiff-based company reported a wider operating loss of 73 million pounds, driven by non-cash impairment of goodwill of 62.7 million pounds relating to its wireless operating segment.
The segment, which saw an 18% fall in its annual revenue on a constant currency basis, has seen reduction in sales volumes due to lower smartphone-related demand and continuing softness in 5G infrastructure.
London-listed IQE said current trading was impacted by temporary semiconductor industry setbacks entailing subdued customer forecasts, orders and related revenue.
It expects revenue for the half year ending June 30 to be between 50 million pounds and 56 million pounds.
IQE, mired in a supply glut due to inventory build-up, also announced fundraising worth 30 million pounds via placing of shares.
($1 = 0.7923 pounds)
(Reporting by Eva Mathews and Anchal Rana in Bengaluru; Editing by Rashmi Aich and Shilpi Majumdar)
