IQE is the leading global outsource supplier of customized epitaxial wafers to the semiconductor industry.

Their technology is of most advanced like AFM means Atomic Force Microscopy and moves a minuscule cantilever over an objects surface, a sharp tip passes over dips or rises punched in the surface and reads out digital information. This technology is not going to slow down it is going to speed up and has to replace most existing forms of memory storage by virtue of capacity and size.

The future of nano-technology, these tiny/minute robots would need very small processors and most sure strained silicon could provide these.

The low share price is due to uncertainty as to when the cash will run out, but I don't think this will happen as cash is of 12 to 15M and NAV of 30p, and losses are going to drop on the next 3 month and we could have profits on the Q4 2004.

Latest news from the Chairman were" The Group remains confident that it is in a strong position within the outsourcing market, although the protection of its cash position is paramount.
With a broad product portfolio allowing the customer base to use IQE as a 'one stop shop', a large available production capacity and a strong balance sheet, the Board believes the Group will benefit strongly as the overall semiconductor industry recovers and will continue to strengthen its position as the leading outsource supplier of advanced wafer products to the sector. "

Nearly all the recent results have been encouraging. Q4 accounts are being completed (30th Dec 2002). IQE know where they stand, if things had got worse their would have been a trading statement by now, and with Amberwave (IQE's partner) increasing its Asian presence, this is a bullish trend and a good point to pick up the shares @ 4.25p

Intraday

5 month MA and Indicators

Halved my holding yesterday to take a nice profit, remaining shares are now a free holding which I will hold indefinitely.

IQE plc : H1 2017 - Interim results

Strong ramp in sales of VCSEL wafers marks the start of a new wave of growth with a pipeline of new mass market technologies.

HIGHLIGHTS
Wafer sales up 17% against H1 2016, delivering a 32% increase in the related operating and adjusted operating profit.

Overall revenues up 12% against H1 2016.

Sales up in all three primary markets with Wireless up 9%, Photonics up 48%, and Infrared up 19% compared with H1 of 2016. Foreign exchange tailwind of c10% following the devaluation of sterling in 2016.
Continued strong growth in Photonics includes the early phase of a significant ramp in VCSEL wafers for a mass market consumer application, and contributed to record monthly Photonics sales in June 2017.
License income of £1.0m, compared with £3.5m in H1 2016 (which included upfront amounts). No upfront license income in H1 2017.

Conversion of adjusted operating profit (£10.6m) into operating cash (£11.2m) of 106% after funding £3.7m investment in working capital, largely in connection with mass market VCSEL ramp (H1 2016: 115% conversion).

Investment in capex and product development of £15.4m (H1 2016: £7.6m) to support further growth, including the expected mass market adoption of VCSELs. This investment was funded primarily through organic cash generation, and supplemented by debt funding.

A further capacity expansion plan initiated to meet higher levels of demand which are expected in H2 2018. 5 new tools on order and lease signed on new premises in South Wales which provides a flexible and cost effective route to add up to 100 new tools, which would double IQE's current tool count.

Breadth and depth of customer engagement across a range of technologies and applications sets the scene for increasing revenue diversity and growth through 2018 and beyond.

Direct engagement with OEMs has expanded to multiple programmes across a range of materials technologies, validating the strength of IQE's IP portfolio as a key differentiator and strong competitive advantage. These programmes are central to several next generation mass market applications.

Net debt up £2.4m since year end to £41.9m (December 2016: £39.5m).

* The Directors believe that the adjusted measures provide a more useful comparison of business trends and performance. Adjusted measures exclude exceptional items, share based payments and non-cash acquisition accounting charges as detailed in note 5.
Dr Drew Nelson, IQE Chief Executive, said:
"The compound semiconductor industry is moving through an inflection point. Many of the key innovations that are taking place in the technology world would not be possible without the advanced properties of compound semiconductor materials. Indeed, compound semiconductors are the fundamental enabler of innovations such as 3D sensing, biometric sensors, electric and autonomous vehicles, high speed wireless and optical communications, and advanced manufacturing.

"IQE has developed an unparalleled breath of materials IP, which position it to prosper from the inflection that is taking place in our industry. Our broad portfolio of IP is a powerful competitive advantage which is enabling us to differentiate ourselves in the marketplace. The strength of our IP has enabled us to broaden our direct engagement with OEMs from single points of engagement a few years ago, to multiple programmes enabling a number of next generation mass market technologies.

"IQE's outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead. The breadth and depth of customer engagement underpins the Board's confidence in approving the capacity expansion plan, which provides a flexible and cost effective route to significantly scaling up in our business over the next few years"

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

I like these bits -

Dr Drew Nelson, IQE Chief Executive, said:

"IQE's outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead. The breadth and depth of customer engagement underpins the Board's confidence in approving the capacity expansion plan, which provides a flexible and cost effective route to significantly scaling up in our business over the next few years"

"The Group has continued to make good strategic, operational and financial progress in 2017, and has a clear vision and roadmap for the continuing growth of the business. The first half progressed well, and ended strongly with the start of a major new product ramp. 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."

IQE figures are slightly disappointing, though forecast remains strong
i'm perfectly content to stay put with both my trading and sipp holdings

I placed buy orders this morning at 120p and 125p to top up my holding. Unless there is a negative reaction to the 9:30am analyst presentation, those might not get filled and I might have to pay more - but I shall be adding at some level or other.

A quick post from Skiathos - looking very promising.

I hope you are enjoying some sunshine Skinny?! It is at a premium here!

Cashed in the rest of my shares on the fall then bought back in plus a few extra at a lower price, couldn't resist! Happy to hold without further trading.

IQE
so juzzle, did you get filled at the price(s) you wanted?
if so, well done, though for myself i just sat tight and all has turned out very nicely indeed

now just need a bullish statement from AAPL on 12th :-)

Nope :(
But the holding I do have has done nicely. And I have amended the expiry on my orders (120p, 125p and also 130p) from 5pm today to 5pm tomorrow - in case today's rise is driven partly by shorters buying to close (though the volumes now suggest we've gone way beyond that logic and into the 'everyone has suddenly twigged it's for real' territory)

time constraints are always a problem with s/b

Yes thanks Kim - 91°C on Sunday.

Could prove a pivotal day today!

Back to the Taverna :-)

I hope you meant 91°F Skinny!😃
Yes, good day today, enjoy the Taverna!👍

-91 deg C is -131 deg F......I think skinny is on the Retsina!

he's obviously just chilling out as IQE continues to chug north :-)

😃

Anyone subscribing to the MoneyAM Level 2 platform please take note that most days it is not reporting the correct Trade High nor Trade Low information and "some days" not reporting the correct Opening Price or Closing Price.

The reason is because MoneyAM's Level 2 system is not correctly sensing the Auto Trades or Ordinary Trades correctly so is wrongly reporting them

Anyone subscribing to the MoneyAM Level 2 platform please take note that most days it is not reporting the correct Trade High nor Trade Low information and "some days" not reporting the correct Opening Price or Closing Price.

The reason is because MoneyAM's Level 2 system is not correctly sensing the Auto Trades or Ordinary Trades correctly so is wrongly reporting them

£5m cash borrowings up, no divi placing on the horizon. [ 155p] target brokers
150p . price @ 155 is value in future. buying keep going on, regardless of value.

keep up with the game and you may understand .... inter alia, AAPL is due to annouce figures on 12th with a report on thier new i-phone8 (i think) which does or will be using IQE wafers ..... there are also other bits of important progress on the IQE horizon

of course, you don't need to either buy or hold :-)

31st aug marshall wace ups short to 2.01% egg on face, who has got it wrong BB