IQE forecasts a 27% jump in its H1 revenue as work from home fuels demand for computer products

IQE plc (LON: IQE) said on Friday that it expects its revenue to increase by a minimum of 27% in the first half (H1). The company expressed confidence in the performance of its light sensors and wireless equipment businesses as it forecast a return to profitability by the end of H1.  

Shares of the company were reported 8.6% up in premarket trading on Friday. At 50 pence per share, the British technology firm is roughly 2% down year to date in the stock market after recovering from a low of 20 pence per share in March. Learn more about how to invest in the stock market.

IQE estimates its H1 revenue to print at around £85 million

According to Peel Hunt analysts, the estimated revenue growth marks the highest for IQE in seven years. The upbeat outlook is ascribed to the rising demand for computer products due to the Coronavirus pandemic that has pushed several companies into relying on work from home arrangements.

Known as a manufacturer of semiconductor wafers that are widely used in Apple products, IQE estimated its revenue in the first half to print at around £85 million. Apple is expected to introduce interest-free monthly payment plans to buy products via Apple Card.

IQE also said that its adjusted operating profit is likely to come in at a low single-digit. IQE’s financial struggles were also prominent in 2019 when its performance was heavily weighed by the Sino-U.S. trade war that massively disrupted the chipmaking industry.

IQE did not provide its full-year financial guidance

The Cardiff-headquartered company, however, refrained from giving its financial guidance for the full year citing the rising Coronavirus uncertainty. The risk associated with COVID-19 that has so far infected a little under 300,000 people in the United Kingdom and caused more than 41,000 deaths, IQE anticipated, will remain significant in the second half.

In terms of production activity, the British semiconductor company, however, did not report a disruption due to the ongoing health crisis. Thanks to the U.S. military that is continuing the purchase of its products and imminent launch of the 5G technology, IQE commented, is likely to cushion the economic blow from the Coronavirus pandemic.  

IQE’s performance in the stock market was also reported downbeat in 2019 with an annual decline of roughly 20%. At the time of writing, the UK-based manufacturer of semiconductor wafers has a market cap of £396.64 million.