Cardiff based semiconductor wafer manufacturer IQE said progress at the firm was temporarily impacted in the fourth quarter by inventory corrections at two major wireless customers but it remains well positioned for growth.
The group, which makes microchips for wireless devices like GPS equipment and smartphones, said pre-tax profit rose to £6.9m for the year ended 31 December 2011 from £6.3m the year before. Revenues climbed to £75.3m from £72.7m despite an inventory correction in the fourth quarter at two major wireless customers.
Chief executive Drew Nelson commented, "These inventory corrections continued into the first quarter, but as anticipated, customer forecasts now reflect a return to growth as expected for Q2 and onwards."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sales from IQE's wireless division, which accounted for over 70% of group sales in 2011, rose slightly to £55.1m.
"This is a key driver for IQE as 3G/4G smartphones use multiple numbers of compound semiconductor chips compared with earlier generations of handsets," the group explained.
Its opto-electronics division, which makes laser printers and laser optical mouse, posted a 21% increase in sales.
IQE, which bought a bought a 9% holding in US based Solar Junction last month, in a bid to increase its solar presence, said prospects for IQE's wireless markets coupled with continuing strength across the its other market sectors mean it remains confident of strong growth in the current financial year and beyond.
Starling Bank boosts rate on its current accounts to 3.25%
Starling Bank hikes current account rate to 3.25% - up from 0.05%.
By Nicole García Mérida Published
Hidden energy costs - what the new energy price cap really means for your bill
The latest energy price will come into play this weekend, which will see households pay an average 7% less from 1 October. But hidden costs could actually see many households pay more. We reveal what you could pay from this weekend.
By Vaishali Varu Published