IQE, the semiconductor wafer supplier, has reported a 21% increase in revenues for 2008.
"Despite the global economic downturn that caused a strong reduction in demand in the fourth quarter of 2008, IQE achieved record revenues and underlying operating profit, producing its fourth consecutive year of substantial double digit growth,” said Dr Drew Nelson, IQE chief executive.
The wafer supplier has seen signs that inventory reductions are coming to an end after slow Q1.
"Whilst it is anticipated that revenues during the first half of the year will be adversely affected by the global recession, we are seeing evidence that growth will resume in H2 2009,” said Nelson.
The company is also hopeful of good long term market growth for gallium arsenide (GaAs) wafers, driven by 3G and 4G wireless communications, solar cells and LED lighting.
"IQE's continued growth during 2008 was driven by the increasing demand for GaAs based components for high speed, feature rich mobile devices that demand the high levels of performance and functionality that our products deliver,” said Nelson.
Sales revenues were £60.5m. Operating profit was up almost seven-fold to £4m.
There were also exceptional charges of £3.9m for restructuring and the setting up of a manufacturing facility in Singapore.