Iqe Share Discussion Threads

[yump] 21/3/2017 07:27

I guess now we'll find out how many LTBH'ers there really are as 6 months or so is a long time to wait to find out whether 3.5p earnings is on the cards. Current share price is about p/e 15 x 3.5p and 3.5p would be about 15% growth, assuming sterling doesn't appreciate against the dollar.

[fft] 21/3/2017 07:22

Good results, but a 10% one off upshift due to currency changes.

[american idiot] 21/3/2017 07:22

Great year for IQE (As we all knew here)

2017 will clearly be a continuation of this :-

Current Trading and Outlook

The Group's technology and market leadership, and its strong pipeline of high growth opportunities positions it well to continue its growth profile over the coming years.

The current financial year has started well and trading is in line with expectations. The outlook for the full year remains very positive, with good upside potential. The Board remains confident that the Group is on track to achieve expectations for the full year, and anticipates that the Group will continue to benefit from strong cash flows.

........

The question now is at the 54p area how much is currently in the shareprice at present ?

No idea personally but had a fantastic run so far trading this trend. Even managed to add a couple of properties to my ever growing portfolio from the profits I've made here.

No position on IQE here as I type but will definately buy any dip in the share price should one occur.

[qs99] 21/3/2017 07:20

good upside potential suggests IMO that upgrades are a real possibility this year but maybe too early to nudge up? DYOR etc

[3rd eye] 21/3/2017 07:18

Current Trading and Outlook

The Group's technology and market leadership, and its strong pipeline of high
growth opportunities positions it well to continue its growth profile over the
coming years.

The current financial year has started well and trading is in line with
expectations. The outlook for the full year remains very positive, with good
upside potential. The Board remains confident that the Group is on track
to achieve expectations for the full year, and anticipates that the Group will
continue to benefit from strong cash flows.

Dr Drew Nelson OBE
President & Chief Executive Officer
21 March 2017

[desperate dan] 21/3/2017 07:16

Nothing wrong with those figures, statements and outlook.

Like this a lot:

"A key customer is engaged in end market qualification using IQE's GaN on Silicon material, signifying that this technology is close to commercialisation"

[lord gnome] 21/3/2017 07:11

Nice set of numbers. Every metric seems to have beaten consensus expectations - not by too much, but enough. Outlook statement is strong, predicting growth for years to come. Nothing here to scare the share price. Over to the markets to see how they respond.

[3rd eye] 21/3/2017 07:10

STRONG RESULTS.......

IQE Chief Executive, said:

"IQE delivered a strong set of results in 2016, with revenues up 16%, PBT up
17%, and EPS up 15%. The continuing growth in revenues, profits and
cash generation is being enabled by the Group's portfolio of cutting edge
intellectual property, and is being delivered through a diverse range of
growth engines.

"Revenues were up in all key markets: wireless, photonics and InfraRed.
Photonics continues to be the star of the show with 43% year on year growth in
sales, and a CAGR of more than 35% over the past three years. This is being
driven by VCSEL and InP technologies which enable a broad range of
applications from fibre optic communication, to advanced sensors, and
industrial processes. The depth and breadth of photonics development
programmes and customer qualifications provide a solid platform for continued
strong growth over the coming years.

"InfraRed sales were up 19% with a number of notable contract wins during
2016. This division has gone from strength to strength, with good
technological and commercial progress. Our largest division, Wireless,
also performed well, with revenues up 15%. Good progress within the
wireless division in 2016, including continued innovation, new product
development and new qualifications, has strengthened IQE's strong leadership
position in this space and provides a good platform for further growth.

"Our focus on building a strong IP portfolio reflects our vision of global
leadership across a range of markets as advanced semiconductor materials
become an increasingly important enabler of a wide range of electronics
applications. This strategy underpins our strong financial performance, and
the exciting outlook we see for our business."

[skinny] 21/3/2017 07:04

Record revenues, profits and cash generation reflect the strength of IQE's IP portfolio, which is delivering continued growth across a diverse range of applications and markets

IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, announces its final results for the year ended 31 December 2016.

£' Million (except EPS) 2016 2015 Change
Revenue 132.7 114.0 16.4%
Adjusted* Operating Profit 22.1 18.9 16.6%
Adjusted* Profit Before Tax 20.6 17.6 17.4%
Adjusted* Fully Diluted EPS 3.0p 2.6p 15.4%
Cash generated from operations 22.5 20.9 7.1%
Capital investment (tangible plus intangible) 19.1 10.0 90.6%
Leverage (net debt + deferred consideration) 39.5 40.4 -2.0%
Financial highlights

Strong financial performance with continued double digit growth in revenues and profits
Revenues up 16% to £132.7m (PY £114.0m), reflects multiple growth drivers and currency benefits in H2
Adjusted* operating profit up 17% to £22.1m
Adjusted* fully diluted EPS up 15% to 3.0p
Strong conversion of adjusted* operating profit into operating cash of 102% (PY: 111%)
Capital investment increased to £19.1m to address near term growth opportunities (PY £10.0m)
Deferred consideration from previous acquisitions settled in full (PY £17.1m outstanding)
Total leverage reduced by 2% to £39.5m (19% reduction in constant currency)
* Adjustments reflect non-cash charges and exceptional items as detailed in note 4

Operational highlights

Diverse range of growth drivers and end markets enables 19% growth in wafer sales, reflecting organic growth in all markets, supplemented by a currency tailwind in H2
Photonics revenues up 43% to £22.8m
Wireless revenues up 15% to £91.3m
InfraRed revenues up 19% to £10.6m
US dollar strengthened 11% against sterling in H2 following Brexit vote in June
License income of £6.7m higher than expected, but lower than prior year (£8.0m) which included a significant element of upfront income.
Direct engagement with multiple Tier 1 OEMs reflect IQE's strong IP position and the increasing importance of epitaxial IP as a key enabling technology within electronic systems;
Major milestones achieved in 2016, enabled by IQE's growing portfolio of leading edge IP, provide a positive lead indicator of significant growth opportunities ahead :
Key milestones delivered on several major photonics programmes during H2 2016, providing significant growth opportunities for 2017 and beyond;
Excellent progress with new cREO technology delivers some early wins, including delivering a step change in GaN on Silicon technology (the elimination of "parasitic channel"), and engagement in development programmes for advanced RF filter applications;
A key customer is engaged in end market qualification using IQE's GaN on Silicon material, signifying that this technology is close to commercialisation; and
Significant contract wins in InfraRed, and progress in a number of development programmes underpin the continued growth of this business, and progress towards new high volume applications.
Positive market dynamics, including increasing M&A and sector investment, reflect the increasing focus on compound semiconductors as a critical enabling technology to major growth themes, including high speed communication, the "internet of things", big data, advanced medical technology, energy efficiency, and autonomous vehicles.
Good progress by IQE's Joint Ventures in the UK and Singapore mark key milestones in their development as centres of excellence in driving innovation and commercialisation of advanced CS technologies. The UK Joint Venture was a catalyst to securing c.£300m of funding towards the continued development of a UK CS Cluster, and the Singapore JV has been selected as a partner in a major programme for CS on silicon technology.
Dr Drew Nelson, IQE Chief Executive, said:

"IQE delivered a strong set of results in 2016, with revenues up 16%, PBT up 17%, and EPS up 15%. The continuing growth in revenues, profits and cash generation is being enabled by the Group's portfolio of cutting edge intellectual property, and is being delivered through a diverse range of growth engines.

"Revenues were up in all key markets: wireless, photonics and InfraRed. Photonics continues to be the star of the show with 43% year on year growth in sales, and a CAGR of more than 35% over the past three years. This is being driven by VCSEL and InP technologies which enable a broad range of applications from fibre optic communication, to advanced sensors, and industrial processes. The depth and breadth of photonics development programmes and customer qualifications provide a solid platform for continued strong growth over the coming years.

"InfraRed sales were up 19% with a number of notable contract wins during 2016. This division has gone from strength to strength, with good technological and commercial progress. Our largest division, Wireless, also performed well, with revenues up 15%. Good progress within the wireless division in 2016, including continued innovation, new product development and new qualifications, has strengthened IQE's strong leadership position in this space and provides a good platform for further growth.

"Our focus on building a strong IP portfolio reflects our vision of global leadership across a range of markets as advanced semiconductor materials become an increasingly important enabler of a wide range of electronics applications. This strategy underpins our strong financial performance, and the exciting outlook we see for our business."

[tonsil] 20/3/2017 21:45

Yea I did the sameStill a big holding for me percentage wise

[lpavlou] 20/3/2017 21:27

I took a view this afternoon to reduce my position and I'm now down to 40% of my original position. Whilst I have banked profits, I still believe in the long term position here. I think tomorrow could be rocky for the share price even if the results are positive as I think the expectations are OTT and can envisage a number of short term holders bailing out. I'm looking for £130m before FX and £135/140m post FX. What will be interesting to see will be the broker updates and thief new target prices

[rutter] 20/3/2017 18:59

Big7ime. IMO MMs don't "stock up" or even hold stock. They couldn't care whether the RNS will be good or bad. They will reduce their market sizes accordingly so they will keep their books balanced . Just my opinions of course GLA for tomorrow

[panic investor] 20/3/2017 18:51

HB I always rabbit on about this being a former software developer - for transparency they should record the buy/sell button as a 1 or 0 This will never happen - in the old days they would have the excuse of expensive disk storage these days they can't but it just proves it's just plain corrupt !No level playing field

[big7ime] 20/3/2017 18:13

Hb Exactly, e.g when I trade I am quoted price then given about 10-15secs to confirm trade during which price can alter and the confirmed trade show incorrectly.

Having said that a load in past week appeared to be programmed sells, the share price wasn't altering - prob one big seller but the mm didn't move the price because either there was a big buy order which has also been disguised or mm wanted to stock up for tomorrow. Just a theory

Now I wonder if latter was so do they intend a big mark up expecting buys to outnumber sells in first 20mins to make quick profit and then drop the price. Seems quite a common practice result day.

[horneblower] 20/3/2017 17:35

A rising share price always produces many buys shown as sells and vice versa.
The reason is that the bid/offer is changed BEFORE the trade is recorded making the trade look like a sell when it was a buy.
Thus the buy/sell stats are pretty useless and should be ignored.

Price direction and volume are what count.

[sailastra] 20/3/2017 17:27

Over the passed 6 trading days there have been;
18,528,742 marked as Buy
19,066,285 marked as Sell
4,988,928 marked as unknown
Given that the price has been so firm I suspect the unknown were probably buys!? being about 20+% more buys than sells

[pugugly] 20/3/2017 16:58

sweenoid: Thanks for consensus view.

There appears to have been a lot of activity before the close - Nervous selling and chance of luck buying - Tomorrow will tell.

[sailastra] 20/3/2017 16:53

A stunning end to a pre-result bull run, I have only got one hat but if I had two I would eat one if tomorrow is anything other than extremely positive...The numbers are one thing...What matters is the outlook...

[phodson28] 20/3/2017 16:31

Fingers crossed for the morning, good luck all.

[lurki0] 20/3/2017 15:47

Well someone's filling his boots...1.4m traded at 54.63. There's confidence.

[sspurt] 20/3/2017 15:10

I am looking for adjusted fully diluted eps of 3.0p compared to 2.60p in 2015. Slightly better than mkt expectations and in the hope that management have left some headroom to beat consensus. There will be a lot of figures flying around so be careful to compare like with like.

[rivaldo] 20/3/2017 14:39

PI, results are tomorrow.

I will be pleased if results are slightly better than expectations and delighted if even better than that.

I'm pretty sure the outlook will be extremely positive.

The share price is still cheap imho given the low P/E for its sector and all of the new technologies now coming to commercial fruition. Assuming the core wireless business continues merely to perform to expectations without surprises, which I think it will, whilst photonics surges ahead and GaN prospects/revenues begin to become concrete, then IQE's share price should continue to thrive.

[panic investor] 20/3/2017 14:33

Results this wed ?

[big7ime] 20/3/2017 13:47

Yep "the market" is clearly expecting very good results and a bullish statement. Not sure if that's enough to keep the price from falling on result with profit taking as is more often than not and could be very volatile. Exciting all the same, look forward to tomorrow..