IQE (IQE) shares lost as much as a quarter of their value in morning trading after the semiconductor technology specialist admitted that it now expects to make an adjusted operating loss, having previously forecast an uptick in adjusted operating profits towards the end of its 2019 financial year.
Low volumes, decommissioning costs associated with the group’s Newport foundry and the inclusion of losses linked to IQE’s Singapore CSDC entity, which IQE acquired in October, have depressed revenues and thus forced down profits. IQE now expects its full-year revenues to sit between £136m and £142m, having previously forecast a range of £140m to £160m.
House broker Peel Hunt trimmed its full-year 2019 adjusted operating profit forecast from £0.3m to a loss of £5.3m.
