Iqe Share Discussion Threads

[tomduck] 20/3/2019 08:06

I’d expect 60s, shame ISA time is not quite yet here...

[hawkind] 20/3/2019 08:05

That was an awful read, no matter how you try and dress it up. I am concerned about the tone of the forward looking statement, they didn't seem at all that upbeat and confident on future revenue/profit generation.Burning through cash, and readiness with facilities almost as though they are twiddling their thumbs waiting for orders and the demand is not there. SP movement will be carnage today, so going to close my eyes, and hope I have this one right in 3-5 years but not looking good. IMHO

[amt] 20/3/2019 08:05

OK the chart on top has not updated. I was thinking 60p or so.

[american idiot] 20/3/2019 08:04

Current down 11.4p @ 72p in the extended auction.

[coolhandfluke] 20/3/2019 08:00

Sounds like they have been building a car park?

[adejuk] 20/3/2019 07:58

hopefully from income, not dilution

[adejuk] 20/3/2019 07:57

saw it amt
good question

[amt] 20/3/2019 07:53

Adejuk. See
The Group provides the following guidance on Adjusted Operating Margins,
Capex, Capitalisation of Development Costs and Tax:

[bocase] 20/3/2019 07:53

Crunk:

Here is a summary

2018 Full Year Results
Fy Revenue 156.3 Million Stg Versus 154.5 Million Stg As Reported A Year Earlier
Fy Profit Before Tax 14.0 Million Stg Versus 24.5 Million Stg
Fy Cash Generated From Operations 17 Million Stg Versus 29.7 Million Stg As Reported A Year Earlier
Fy Adjusted Profit Before Income Tax 13.97 Million Stg Versus 24.52 Million Stg
"2018 Was A Very Difficult And Challenging Year For Iqe Group From Many Perspectives"
"Disappointing" 2018 Financial Performance Was Materially Impacted By A "Very Substantial" Vcsel Inventory Correction In First Half Of 2018
Given Market Opportunity And Group's Operational Readiness, Outlook For Fy19 And Beyond Remains Strong
To Generate An Adjusted Operating Margin Of Over 10% Of Revenues In Fy19
Operating Profits Are Expected To Increase Towards End Of Fy19
Capital Expenditure Of About £40m Will Be Spent In 2019 In Order To Ensure Growing Revenue Opportunities Can Be Captured.
Fy Also Impacted By "Sudden Disruption" In "Highly Significant" Supply Chain Causing Reduced Short-term Demand For Vcsel Wafers In Last 2 Mnths Of Year
Revenue Increases In 2019 Will Be Driven By Return To Strong Growth Of Photonics Business And Emerging Opportunities In 5g
H1:h2 Split Of Revenues Is Currently Expected To Be About 40:60 For Fy19
Investments We Have Made Will Deliver Margin Expansion, Growing Profitability And Increasing Free Cash Flow In 2019 And Beyond

[adejuk] 20/3/2019 07:51

i partially agree tomduck. it looks as if they expect a significant ramp up in H2.

[thecrunk] 20/3/2019 07:49

wehre are you guys finding the accounts or RNS I cant find it on their website?

[tomduck] 20/3/2019 07:48

Owenga, yes if anything I would say it has slipped 3-6 months. For the past few months I have been predicting that the ramp in earnings would be 2021, and that we likey won’t see the share price motor until the end of this year / early 20. Certainly the forward statement is dullsville.

[augustusgloop] 20/3/2019 07:42

bocase

forget the financial highlights

read the accounts

EPS = 0.13p ----- plain as day

[scrawny dawny] 20/3/2019 07:42

is that a veiled profit warning?

[bulltradept] 20/3/2019 07:41

TBF, they do say it's sometimes darkest before the dawn, but currently it's pitch black in the valley's and no one's got a torch! 8-O

[owenga] 20/3/2019 07:40

Does feel everything has moved back 6 months. Customer qualifications moving very slowly. Are they actually mass producing for any as of today... doesn't look like it. Just got to get all the investment completed over the remainder of the first half, which will set them up ready for significant expansion. Just need all those qualifications to get finalised.

[bocase] 20/3/2019 07:40

August:

I think you are mis-reading check the financial highlights

EPS 1.38p

[adejuk] 20/3/2019 07:39

amt
where do you get the 40mill '19 capex projection from?
all done
rdit
seen it

[sweenoid] 20/3/2019 07:38

Not exactly what I was hoping for, time to read it again
S

[bocase] 20/3/2019 07:33

Augustgloom:

Where did you get EPS of 0.13p from and a PE of 653

Fully diluted EPS was 1.38p putting it on aa historic PE of 60.

Maybe spend some some of your profits on reading and arithmetic before posting.

[augustusgloop] 20/3/2019 07:33

bocase,

these results were NOT flagged.

Yes - you knew that there were problems.

But a 92% fall in profits = I don't think so!

We will see when the market opens if the investors knew that things were so bad.

A PE of 653 for a company that is not growing profits (in fact profits have fallen catastrophically) --- Can't see that being maintained for long.

---------

Mug punters are willing to pay dearly for jam tomorrow -- but not to a PE of 653!

[bulltradept] 20/3/2019 07:32

I am loving this bit "Significant capital investment in capacity establishes sound base for growth in 2019, driven by Photonics and 5G Wireless"

Which seems to suggest; "Hey shareholders we aren't growing yet, but please, trust us we soon could be, / might be, given a strong wind and some help from the gods, oh and ensuring rampers on bulletin boards who knows ?" ;-)

[amt] 20/3/2019 07:31

These headwinds will affect
the revenues and profitability of the Group in the first half of FY19.
20m of cash. 40m capex in 2019 projected. It looks to me like cash will reduce further?
683m market cap. That's more than 4 times sales let alone sky high pe ratio.

[adejuk] 20/3/2019 07:30

it seems better with each reading

[bocase] 20/3/2019 07:28

Augustgloom I take it you are short or did you just not know these results had been flagged to the nth degree in November.

I don't think this is as dull as the previous statement which said we are well placed to take advantage of growing markets. This is much more specific.

Margin expansion, increasing profitability and increasing free cash flow.