The compound semiconductor wafer maker swung to positive adjusted EBITDA in the first half as revenue growth exceeded 40%, with management reiterating full-year guidance of over 30% growth.
"I am very pleased that H1 trading exceeded our expectations", said chief executive Jutta Meier
Chief executive Jutta Meier said the deal, expected to build over coming years, underlines IQE's role "supporting high-performance infrastructure from the datacentre to the edge, enabled by our differentiated epitaxy portfolio".
Analyst John Karidis says a multi-year InP epiwafer supply agreement with Tower Semiconductor is a materially positive development for IQE's net present value.
IQE agreed a multi-year supply of Indium Phosphide (InP) epiwafers to Tower Semiconductor for silicon photonics used in AI data-centre optics and secured a royalty-free licence that settles prior IP litigation.
"Look to now and ahead, not back," DB analyst John Karidis said in a note.
Panmure Liberum still sees IQE as a 'Hold', but upgraded its price target to 50p from 40p, following MACOM’s strategic investment.
IQE raised £81m through the issue of 332.18m Fundraising Shares, lifting its issued share capital to 1.31bn shares and diluting existing holders by 25.3%.