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Shares of IQE plc (LON: IQE) today surged 5.87% after the company released its H2 2020 trading update revealing that it received its largest Military & Defence sector purchase order to date worth over $10 million from a US customer. The order will be delivered over the next nine months.

The company which supplies advanced wafer products and material solutions to the semiconductor industry reported that there was strong year-on-year growth within its wireless business unit driven by demand for GaAs wafers from the 5G industry.

IQE’s photonic business unit also recorded strong growth during H2 driven by consistently high demand for GaAs VCSEL wafers for 3D sensing applications and sales of high-performance GaSb wafers for Military & Defence infrared applications.

The group raised its full-year revenue outlook to £170m from the previous £165 million, announced in September along with its interim results. The higher revenue forecast represents a 20% annualised revenue growth.

IQE anticipates delivering a mid-single-digit £m adjusted operating profit for FY20. Having reduced its capital expenditure in FY20, coupled with a positive trading position, net debt is anticipated to be low-single-digit £m versus last year’s £16m net debt position.

Dr Drew Nelson, IQE’s Chief Executive Officer, said: “We are delighted to be reporting such a strong all-round financial performance, with anticipated revenue growth of over 20% for the full year, despite the ongoing uncertainty in the external environment. I am exceptionally proud of the whole IQE team whose dedication and commitment has enabled us to operate without interruption throughout this period.”

IQE share price

Trdingview chart of IQE share price 24112020

IQE shares surged 5.87% today to trade at 63.95p having rallied from Monday’s closing price of 60.40p.

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