IQE plc

Cardiff, UK

16 January 2024

Pre-close Trading Update

-     Performance in line with expectations as diversification strategy being implemented

IQE plc (AIM:  IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, provides a pre-close Trading Update for the financial year ended 31 December 2023.

Revenue for the period is expected to be at least £115 million, reflecting a more than 20% increase from H1 to H2 2023, in line with previously issued guidance. The Group expects this to result in an adjusted EBITDA of at least £3 million and a net debt position of c.£3 million.

Americo Lemos, Chief Executive Officer of IQE, commented:

"I am pleased our business performance was aligned to guidance despite a challenging macro environment. We returned to growth from H1 to H2 2023 and expect this positive trajectory to continue in 2024. Additionally, we made significant progress implementing our diversification strategy, expanding our customer engagement pipeline and securing multiple design wins in GaN Power and MicroLED markets. Our strategic investment in GaN capacity in 2023 is anticipated to unlock further opportunities throughout 2024."

The Group will announce the date for reporting full year results in due course.

Contacts:

IQE plc

+44 (0) 29 2083 9400

Americo Lemos

Neil Rummings

Amy Barlow

Peel Hunt (Nomad and Joint Broker)

+44 (0) 20 7418 8900

Paul Gillam

Richard Chambers

Kate Bannatyne

Deutsche Numis (Joint Broker)

+44 (0) 20 7260 1000

Simon Willis

Hugo Rubinstein

Iqra Amin

Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822

Andy Rivett-Carnac: +44 (0) 7968 997 365

Chloe Francklin: +44 (0)78 3497 4624

ABOUT IQE

http://iqep.com

IQE is the leading global supplier of advanced compound semiconductor wafers and materials solutions that enable a diverse range of applications across:

·    Smart Connected Devices

·    Communications Infrastructure

·    Automotive and Industrial

·    Aerospace and Security

As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in this market which has high barriers to entry. IQE supplies the global market and is enabling customers to innovate at chip and OEM level. By leveraging the Group's intellectual property portfolio including know-how and patents, it produces epitaxy wafers of superior quality, yield and unit economics.

IQE is headquartered in Cardiff UK, with employees across eight manufacturing locations in the UK, US and Taiwan, and is listed on the AIM Stock Exchange in London.