IQE plc, an epitaxial wafer supplier located in Cardiff, Wales, UK, announced a transaction update and comprehensive operational strategy review.
The company stated that it currently expects its full year 2024 revenue as of December 31 to be the same as 2023, at approximately £ 115 million, with an adjusted EDITDA (earnings before interest, taxes, depreciation, and amortization) of at least £ 5 million. The company stated that this is due to the slower than expected recovery in key areas of the electronics market.
The company added that it had hired Lazard to help it conduct a comprehensive strategic review of its asset base, including expanding the proposed IPO of Taiwan, China business to include the option of full sale.
In addition, IQE stated that it is in negotiations with Lombard Odier for a convertible loan note with a maximum amount of approximately $15 million and a conversion price of 15 pence per share.
Mark Cubitt, Executive Chairman of IQE, said in a statement: "The impact of the slow pace of recovery of the semiconductor industry can be seen in the entire industry, which is also reflected in our revenue forecast for the 2024 fiscal year. Looking ahead, strategic evaluation, including a broader evaluation of our business options in Taiwan, China, China, will ensure that we have a strong capital base, continue to invest in our core businesses and support IQE's long-term strategy."
At the same time, IQE is looking for a successor CEO, and former CEO Americo Lemos will resign in October 2024. Chief Financial Officer Jutta Meier currently serves as interim CEO and CFO.
