Iqe Share Discussion Threads

[qruz] 05/9/2017 12:11

Can anyone share any Analyst questions and responses from the presentation?

Thanks

[zedder] 05/9/2017 11:46

Hopefully the shorters paid for LTHs to top up with cheaper shares this morning!

[someuwin] 05/9/2017 11:45

IQE H1 2017 Results

Click here to view the investor briefing presentation for the IQE H1 2017 results or click on the image below:

[davebowler] 05/9/2017 11:42

...............In light of the benefit of a strong pipeline and increasing revenue diversification the Board remains confident that the Group is on track to deliver full
year earnings in line with the recently upgraded expectations.

Dr Drew Nelson, CEO

[jimboyce] 05/9/2017 11:39

Sheep_HerderI did - see post 5149.

[bauchsapt] 05/9/2017 11:17

Elcapital: is this still going to burn to cinders as you was previously raving on about and calling everyone "idiots and morons" just wanted an update on your thinking so far post interim results?

[sheep_herder] 05/9/2017 11:12

Exactly. :-) Tell us when you find something.

[jimboyce] 05/9/2017 10:57

Sheep_HerderThe ever-increasing demand for higher speed and improved performance from today's electronic devices is ushering in a new era of semiconductor materials that combine the scale of the silicon industry, which has been the default semiconductor material for the last half century, with the power and performance of compound semiconductors that have emerged as true 21st century materials.IQE is at the forefront of developing highly advanced technology for producing compound semiconductor on silicon wafers and has also developed a new range of engineered substrates such as germanium-on-insulator (GeOI), germanium-on-silicon (GeOsi), and silicon-on-sapphire (SOS) for next-generation microprocessors, ultra high speed/density flash memory and MEMs devices.IQE has established a powerful position in these advanced technologies, working with some of the biggest names in the industry and on major government funded programmes, which is reflected in a number of joint patents awarded in conjunction with Intel for the production of compound semiconductor materials on silicon substrates. Indications from customers are that initial product launches are anticipated as early as 2016.We believe that the intellectual property that we are developing in this field has the potential to revolutionise the semi-conductor world, and in doing so create significant long term value to IQE stakeholders.

[volsung] 05/9/2017 10:56

Cheers Toffeeman. Nice when a plan comes good!

[rivaldo] 05/9/2017 10:53

Brief Liberum analyst comment (the article also has more comments from N+1 Singer):



Extract:

"Capex spending has doubled year-on-year and a further capacity expansion plan has been initiated to meet higher levels of demand that is expected in the second half of 2018," said Liberum analyst Janardan Menon.

"The breadth and depth of customer engagements sets the scene for increasing revenue growth through 2018 and beyond. IQE is representative of trends in compound semiconductor demand driven by VCSELs for 3D sensing, and other products."

[sheep_herder] 05/9/2017 10:48

jimboyce, can you expand on "all the joint work they have done together on CMOS++"? You mean a couple of published papers in 2011 or you've found something else?

[toffeeman] 05/9/2017 10:46

Credit to Volsung s/he called it spot on

[jimboyce] 05/9/2017 10:44

Yep Intel could easily take IQE, bearing in mind all the joint work they have done together on CMOS++Take out at 1750m, gives about £2.50 per share.

[sheep_herder] 05/9/2017 10:41

I don't think it makes any sense at all. I still maintain that IQE's technology wouldn't have helped Intel in any of the markets they've been attacking since 2011 and well into the future. They don't do RF filters or power amps. They don't do optical interconnects. It wouldn't have helped them beat ARM in the mobile space either.

Can anyone name a way in which IQE tech could have or will help Intel in the near term? I doubt it. I think it's just the usual misunderstanding of what IQE do.

Edit: I tell a lie, looks like Intel do some 100G interconnects now but that's not their main business.

[panic investor] 05/9/2017 10:33

Now that post does make more sense than the Apple one !

[nickdr99] 05/9/2017 10:31

From stockpedia in 2014....In 2011 it was rumoured and later confirmed that Intel Corporation were considering a buyout of  IQE with offers around £500m ,at the time it would have been a bold move by Intel given IQE,s earnings and debt position in 2011.However since that time the fortunes of both companies have actually reversed with Intel struggling to fend off its competitors and maintain its earning power,and IQE on the other hand growing its key and core business at a healthy level.In a recent interview,new Intel CEO Brian Krzanich indicated that the corporation are now focused on building its exposure in the mobile & tablet chips market,and potentially in to the new area  of wearable devices.It would be astonishing if Intel were not looking at the likes of IQE again for a potential buyout,because as has been proved in the last few years,the reliance by Intel on the PC Chips market and the unwillingness of the corporations former management to follow the trend of the mobile market has cost them dearly.It could be argued that had Intel actually taken over IQE back in 2011 the corporations performance would now be looking somewhat more positive.So in conclusion a takeover of IQE by Intel now looks compelling and makes sound business sense.

[nickdr99] 05/9/2017 10:27

Thanks guys. If intel seriously looked at IQE in 2011, then it seems reasonable that they would be looking again now. However interesting things might have looked then, must be a lot more compelling now. I get the point about the premium required and delivery risk, but if its the technology leadership they would want they might think they can improve the delivery risk by having control. Don't get me wrong, prefer that the company stays independent and we / uk can enjoy the benefits but it must be appealing to some.

[lurki0] 05/9/2017 10:17

So nearly 15 million traded and the share price as buoyant as ever. And it's only 10.15am. Seems Mr Market is a happy bunny.

[luxaeterna1] 05/9/2017 10:13

Nice image of the iPhone 8. Nice detailing of the new sensors..

[adventurous] 05/9/2017 10:08

yump - you did not understand why investors were buying in at circa 55p so I guess any talk of figures is pointless now, as it appears you have missed them again!!

It's all about the future figures, not the past. However, you must have missed my earlier post, so for your benefit:

-----
Post 5704:
The more relative check on progress is the adjusted operating profit:

H1 16 10.782m incl (3.5m licensing - most upfront)
H1 17 10.551m incl (1.0m " - no upfront)

Licensing is noted as all profit, so minus licensing, we have:

H1 16 7.282m
H1 17 9.551m

The growth (discounting licensing) is therefore 31% - not a bad start to the ramp up, as I guess it came mainly in June.

[multibagger] 05/9/2017 09:53

What IQE has - is the IP which would make it very attractive for a takeover - to me it is a matter of when, not if. It will be a good/excellent premium to the share price at that time. It's well known that SoftBank is on the prowl....

Big technology players build their competitive advantage through their IP, processes/patents, R&D and supply chain amongst others. Having end to end control would increase their margins in most cases and reliability of their supply chain and control over what their competitors can access.

Which business is not seeking to develop a monopoly (either overtly or discreetly)?

[scottishfield] 05/9/2017 09:52

A v good situation for us PI's however APHRODITES

[aphrodites] 05/9/2017 09:51

nickdr99

It's not a question of whether a company like Intel wants to buy IQE, it’s the price they would have to pay to buy it!!!!!!!!!

To take IQE out at this stage of their development and to secure its management for say 5-years would probably require them paying a price of over £3/£4 a share.

In this fast-developing technological age would you have the balls to pay £2 billion over the current market valuation to get hold of a business which could well be outdated in only months to come?

If IQE delivers; and only the next 18-months will confirm this, then they might have to pay £5 billion to acquire it. For many CEO’s it is better to know what they are buying than gambling today.

Having said that, if IQE does deliver then the share price could easily be a multiple of 10 times its current price in 2 years’ time!!!
So, we come back to the old thorny problem facing many CEO's today. Do they risk it and gamble on investing in the future or sit tight and pay a price for a business which they know will deliver shareholder value?

[sailastra] 05/9/2017 09:49

Risky business trying to second guess this one, glad I sat tight....Would be kicking myself if I had sold....mind you it was the same at 25..30..40...50...60...70....80...90..100...110...120..130...Looking forward the profits look to have only started to gain traction....Plenty to hold on for...

[arcadian] 05/9/2017 09:47

Re 5772 and the real world to which IQE will contribute

From a recent company (not IQE) report. I own shares so I have deleted the name. Social habits are what matter.

As stated at the time of the FY 2016 results announcement on 20 March 2017, ........entered 2017 at a run rate significantly higher than the equivalent period in the prior year as it continued to benefit from the investment being made into mobile advertising by corporates and advertising agencies. As consumers continue to increase their use of apps and are accessing the internet on their mobile more of the time, the Company saw existing clients growing their ad spend accordingly in the first half of the year..... has also seen good growth through its expanded global presence and experienced increased revenue contribution in H1 2017 from the Company's new offices. Specifically, the Company saw increasing demand from the Asia-Pacific region as ....... continued to build its presence in the region. As a result, the Company expects to report H1 2017 revenue and adjusted EBITDA significantly ahead of the corresponding period in the prior year.