StockMarketWire.com - Semiconductor materials supplier IQE warned on revenue following a softening demand in the smartphone supply chain in the final quarter of the year.

IQE said it now expected full year reported revenues to be in the region of GBP £152 million, representing circa 8% reduction in revenues year-on-year.

'The resultant reported Adjusted EBITDA is expected to be in the region of GBP £18m. This is equivalent to circa £25m at constant currency, representing an EBITDA margin of circa 15% at constant currency (FY2020 17%,' the company said.

Demand for wireless GaAs epi-wafers had continued to grow in H2 2021, but GaAs volumes were below management expectations in Q4 amid softening demand within the broader smartphone supply chain.

Sales of wireless GaN epi-wafers, an essential material for 5G infrastructure, had continued to be weak due to 'end-market dynamics, including significantly lower levels of mMIMO base station deployments in Asia and the slow rate of deployments in Western markets,' it added,

'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.'

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