Shares in IQE (IQE) jumped strongly after the manufacturer of 'wafers' - advanced semiconductors used in microchips - revealed that profits for the first half of 2016 will be significantly ahead from the previous half year.
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Sales are expected to have risen by at least 15 per cent, thanks in part to an ever more diverse revenue stream. Photonics in particular has grown strongly as lasers are increasingly adopted for a wide range of applications including fibre optic communications, data centres and industrial processes.
Licensing income from joint ventures intended to develop and monetise its intellectual property is expected to be around £3.5m. Strong cash generation has also enabled the group to reduce its leverage.
