By Sabela Ojea
Shares in IQE PLC on Wednesday fell after the company said it expects to post a decline in revenue for 2021 as a result of softening demand in the fourth quarter.
The U.K. supplier of semiconductors said full-year revenue is expected to be in the region of 152 million pounds ($203.3 million), which is equivalent to around GBP164 million at constant currency and represents a 8% decline in revenue on a year-over-year basis.
Adjusted earnings before interest, taxes, depreciation and amortization are anticipated to be in the region of GBP18 million, or GBP25 million at constant currency, representing an Ebitda margin of around 15%, down from 17% for 2020, the company said.
"Whilst it is disappointing that 5G infrastructure deployments have remained weak all year, we still expect this macro trend to provide a multi-year growth cycle for IQE. In the immediate term, broader semiconductor market shortages have softened demand in some supply chains but we believe these effects to be temporary and remain excited by the opportunities ahead," interim Executive Chairman Phil Smith said.
Shares at 0828 GMT were down 9.05 pence, or 18%, at 41.35 pence.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix