Iqe Share Discussion Threads

[goggin] 10/4/2024 12:54

Reported operating loss of £25.8m (FY 2022: £73.0m loss including £62.7m non-cash goodwill impairment) impacted by a reduction in sales volumes and underutilisation of manufacturing capacity.·    Reported net cashflow from operations of £10.1m (FY 2022: £8.9m), resulting from controlled working capital management.·    Cash capital expenditure (PP&E) of £12.2m (FY 2022: £9.4m) to support the Group's strategic diversification and growth strategy. The Group has a continued focus on research and development with investment in capitalised technology development of £2.8m (FY 2022: £3.8m).·    Adjusted net debt of £(2.2)m as at 31 December 2023 (FY 2022: net debt of £15.2m). Successful refinancing in May 2023 including a new Revolving Credit Facility of $35m (£27.3m), with an undrawn balance of $30.0m (£23.4m) available to the Group as at the year end.·    Equity raise of £29.8m (net proceeds) completed in May 2023 in order to strengthen the balance sheet and underpin strategic investment.

[lord loads of lolly] 10/4/2024 12:53

pramPPP - that would certainly be novel!

Perhaps cunningly, IQE hasn't really promised ANYTHING this time round. They've simply referred us to analysts' consensus forecasts.

Now as we all know, analysts have a nasty habit of blowing with the wind. Sticking a finger in the air, then quietly - ahem - adjusting their forecasts up or down when reality proves them wrong yet again.

So we're likely to be aiming at a moving target from now on. The more cynical amongst you might say this means IQE can claim they guided us accurately - whatever the outcome! Me? I couldn't possibly comment.

[pramppp] 10/4/2024 12:40

Here’s hoping that iqe are now going for an underpromise and then overachieving strategy in relation to their revenue.

[longtallsally] 10/4/2024 12:26

We need to close above the 26p resistance first before we think about 32 ;)

[arja] 10/4/2024 12:22

chart resistance seems to be at about 32 level in short term

[arja] 10/4/2024 12:18

I notice the massive volume today which is normal I guess after good results . Just as the massive volume at 20 level meant a reversal point and move higher , it could be similar situation in reverse so to speak. So might well fall on profit taking tomorrow and certainly could be a good trading stock as NO stamp duty payable - added to my watchlist of NO SD stocks :) . Good luck to those holding

[lord loads of lolly] 10/4/2024 11:16

Have to say I'm pleasantly surprised by today's market reaction. Guess it just goes to show how low expectations were.

If I were daytrading here (which I'm not), I'd be taking my profits PDQ today, as I don't see the full re-rate lasting. But at least that may mean we lose some of the more obnoxious fly-by-night posters here, who brought the tone - & quality of debate - down.

I think Americo DID kind of stick to his 2027 projections on this morning's webcast, whilst making it clear he wasn't going to repeat them every time. I still don't think they're achievable. But somewhere half-decent in between might be.

Also interesting he still seemed reasonably confident they'd eventually get some money out of the US Chips Act. We'll see....

On the less positive side, what today's presentation also underlined to me is just how sensitive (& largely defenceless) IQE is to fluctuations in the wider semiconductor market. They kept referencing this in terms of the sharp H1 23 downturn. And how they'd since taken action to cut their cloth accordingly. Problem here is it suggests very limited earnings visibility, with the potential for plenty more bumps along the road.

Still, I'd say it's now almost certain better times lie ahead. The question is exactly how much better?

One final observation. If IQE wants to get the market & new investors excited, they could do with polishing up on their presentation skills. I'd recalled Americo's English being slightly more fluent. And whilst Jutta's presentation was fine, it all came across as slightly robotic, scripted & flat (in fact, I found a few small elements hard to understand at all). It's not a criticism, as I know neither is a native English speaker. But a bit of media/presentational training wouldn't go amiss.

[gepetto100] 10/4/2024 11:12

Are we feeding a major buyer here folks

[hutchmeister] 10/4/2024 11:05

I wonder if the US when they wake up will take the share price ever further upwards. Certainly a very interesting day today

[peterbrock] 10/4/2024 11:02

Agreed Sweenoid! Surely there is positive news here today and the share price has moved in the right direction. The outlook also seems to give reasons to hold. So well done Americo and his team.

[dpmcq] 10/4/2024 10:44

Agreed Crosswires and finally have a day when we are nearly top of the % gainers board
GLA onwards and upwards

[crosswires] 10/4/2024 10:27

He appeared not to directly repeat his 3x revs comment to me, but rather say he didn’t intend to keep repeating it, anyhow, it’s good to see the market reaction. We have become so used to bad news it’s a relief to see the market reward “no more bad news” and let us all hope 2024 brings further joy 👍

[sweenoid] 10/4/2024 10:17

I decided to wait until I had listened to the webcast before commenting, I hadn’t even looked at the share price till 5 minutes ago and am pleased with the market reaction. Today’s outlook was never going to be as positive as I would have hoped for but it contained no skeletons.

Today was all about the comments rather than the figures for 23 and that happily seems to be the consensus view of the market too.

I think the analyst expectations for 2024 are rather laughable in their scope, given the upsurge in H2 2023 and continuing improvements I see IQE beating at the top level, IMHO setting us up for a bullish trading statement in late June- early July which along with hopefully some good newsflow should set us really back on track.
Correct me if I am wrong but at the end of the webcast in response to a question the CEO ( in a roundabout way 😂) DID restate the revenue and margin targets for 2027 set out at the October 2022 Capital Markets Day ✅👏.

I would summarise today’s statement as cautiously but positively optimistic. Given the caveats expressed and the sheer growth potential of the markets we supply I am more than happy to park my large shareholding here.

Finally and sadly this bb has become a very very sad place to visit, it doesn’t enrich my life and I will be visiting and commenting far less often .

The tide I believe is at last turning.
Best wishes all
S

[crosswires] 10/4/2024 10:09

Resistance taken out, but can it hold it. Would be some effort if the share price can maintain this level and close above 26p especially with that large sell going through at 24.85.

[crosswires] 10/4/2024 09:59

Almost eveyone comes up as filtered this morning 😂

[bocase] 10/4/2024 09:57

Machine 2 filtered

[crosswires] 10/4/2024 09:46

Answered one of my questions at the web cast and the overall tone was of work in progress. I guess we should remember that when Anerico arrived, the business was not fit for purpose in dealing with market related bottlenecks, so it’s taken a while to reorganise it to be more able in the future. Was interesting that Americo said he wouldn’t keep reiterating the 3x revenue each year but was still positive about our slice of a growing pie by 2027.

As we have all mentioned before we don’t expect 3x 2022 revenue but if IQE can carve out 25% growth from 2023 (albeit off a horribly low revenue year this year) that would equate to £280m revs by 2027, which would see the share price re rate nicely. Still easier said than done

[themachine2] 10/4/2024 09:40

TerryFkwit/LongTallSally

What a plonker telling everyone porkies that outlook statement is NOT good.

Share price is UP 25% you idiot