Recommended by myself as a Strong Buy at 8.00-9.00 pence on 15.10.04
http://www.iqep.com/
Daily Execution Price and Volume


(USA)

Semi Index

!FUNDAMENTALS!NEWS
Preliminary Full Year Results - Tue 22 Mar 2005
IQE plc was formed in May 1999 by the merger of two leading wafer foundries, each with a proven track record in the supply of high quality electronic and optoelectronic materials produced using MBE and MOCVD platforms. We believe that the expertise and experience across a diverse range of materials available from IQE is unparalleled within the compound semiconductor industry.

LATEST NEWS :
RNS Number:8494E
IQE PLC
04 November 2004
IQE secures major outsourcing contract with leading RF component manufacturer
IQE's North American subsidiary, IQE Inc, today announced it has secured a major
outsourcing contract to supply a leading North American RF Component
Manufacturer with epitaxial materials for its RF based components used in mobile
handsets. The agreement, which is effective from 1st November 2004 and is for a
minimum term of two years, renewable annually thereafter, provides for IQE's
Bethlehem site to supply more than 90% of the customer's anticipated demand for
their advanced RF wafer products and is estimated to be worth around US$25
million in revenue to IQE over the initial two year period. As a result of the
agreement, internal wafer manufacture at the customer's site will cease. Both
parties have been working closely together for several years; a relationship
through which IQE has gained a high degree of confidence in its own ability to
service the outsourced epiwafer needs of major manufacturers.

IQE's President & CEO, Drew Nelson said "This agreement with such a prominent
global supplier of RF components for the cellular phone market demonstrates a
clear movement towards the outsourcing model within the compound semiconductor
industry. Their selection of IQE as the primary partner, as a result of our
large and comprehensive production capacity, and low cost structure, endorses
the Company's commitment to the outsource model"

A spokesman for the customer commented: "outsourcing certain products and
services such as the manufacture of our RF epitaxial wafers allow us to
concentrate our efforts on the processes that add significant value to our
product offering within the global, highly competitive RF market place and we
are pleased to build on previous work we have undertaken with IQE. This
agreement will allow us to be one of the most highly cost effective players in
the RF component marketplace"

Tradeshows
IQE actively participates in a wide range of tradeshows, conferences and seminars throughout the World.
IQE will be participating in the following forthcoming trade event:
--------------------------------------------------------------------------------
EVENT LOCATION DATE
--------------------------------------------------------------------------------IEDM 2004 San Francisco, CA 07 Dec 2004
(05 November 2004)
The Company was notified today by Canada Life Limited, that following the
purchase of 2,000,000 ordinary shares of 1 pence each in the Company ("Ordinary
Shares") at 11.6 pence each, Canada Life Marketing Group is now interested in
14,551,156 Ordinary Shares. These Ordinary Shares represent 4.6 per cent. of the
issued share capital of the Company.

(20 October 2004) Scottish Widows Investment Partnership Ltd on
behalf of Lloyds TSB Group plc and its subsidiary companies, that they are
interested in 24,020,662 ordinary shares of 1 pence each in the Company
("Ordinary Shares"). Of this interest, 22,039,762 Ordinary Shares are material
interests, which represent 6.98 per cent of the Company's current issued share
capital.

Director Holdings :
Dr Drew Nelson 26,724,636 (5 Nov 2003)
Dr Michael Scott 26,157,970 (5 Nov 2003)
Martin Lamb 3,775,584 (5 Nov 2003)
Dr Godfrey Ainsworth 1,627,020 (20 Oct 2004).

Buy Note published by House Broker Evolution Beeson Gregory on 04.11.04 :

Evolution Securities 100 Wood Street, London, EC2V 7AN 020 7071 4300
Evolution
SECURITIES
www.evosecurities.com 4 November 2004
IQE (IQE) Buy
Mkt cap: 36m Net cash: 11m Contract win Price/Target: 11p/15p
Breakthrough contract win
IQE has announced that it has won a $25m two year outsourcing deal
with a leading US RF component manufacturer. This is a genuine
breakthrough for IQE it gives us the confidence needed to raise our
target price to 15p
IQE have won a major outsourcing contract with a leading US Radio Frequency
wireless/mobile components company. The contract has a minimum term of
two years and an initial value of $25m. This is one of the four contracts that
management were referring to at the time of the fund raising in November
2004. The other three do not appear to be close to signing at present but the
list of potential customers is still there and management continue to talk to
other parties. This contract win proves that there is a market for wholesale
outsourcing of epitaxy and we expect others to follow but not in the
immediate future.
We estimate the split to be $10m:$15m between year one and year two. The
contract involves the closure of the customer's facilities and because of the
sensitive nature of this the identity of the customer has not been announced.
We are not changing our forecasts. This $10m for the first year is already in our
27.2m revenues estimate for next year. It is worth noting that because the
contract is with an existing customer there is an element of revenue substitution
in this contract. However, this announcement does mean that we are
considerably more comfortable with the forecasts than we were.
If more contracts come through, the revenues should go straight into our
forecasts. We would not expect the other contracts to be as substantial as this
but given the marginal loss/profit scenario we have forecast for next year their
effect on earnings could be significant.
As a result of this announcement we have increased confidence in the forecasts
and so we are increasing our share price target to 15p.
Ian Robertson +44 (0)20 7071 4463 ian.robertson@evosecurities.com EVO Securities is broker to IQE
Year end Sales (m) EBITDA (m) PTP (m) EPS (p) PER (x) Yield (%) EV/Sales (x) Revised?
12/03A 18.8 -11.3 -12.8 -6.2 - - 1.3
12/04E 17.1 -8.3 -9.9 -3.1 - - 1.5 No
12/05E 27.2 0.4 -1.5 -0.5 - - 0.9
21. 75 1 5/1 0/03 LOW 2 .20 11/ 3/0 3 LAST 8 .50 Source: DATASTREAM

Im still in and am still confident long term, this has a long way to go to return to previous highs. As i have said before the big danger is the exchange rate and the effect this might have on improvement in results, but longer term should be good. Patience is the key.

Well said Kivver.goal.

The most significant part of the recent trading statement says:-

The Group expects to report revenues for 2004 of not less than 15.3
million, which, although below our previous expectations, primarily due to a
weak third quarter and adverse exchange rates, have still resulted in us
achieving our expectations for EBITDA and cash levels. A number of positive
developments, including the winning of a major outsource contract worth around
$25m over the next two years, enabled the Group to exit 2004 with its largest
order book for two years, and an exit revenue run rate which will deliver
growing revenues in 2005. We believe we have sufficient capacity and resources
within the Group to deliver improved shareholder returns in the current year and
beyond.'

I think this means fair now with an improved future!

Stuff revenues , what about profits ?

Well like ive said prevoiusly hoping to break even this year, loss the last couple of years. If that happens it just may show things are improving. Exchange rate is not helping.

what profits are sps, pci, trt, seo, showing? yet the price is very high!

Yeah but I don't hold those either :-)

Good luck Kivver , hope it comes off for you.

Thanks Dil, it already has i bought at 6.5p. Dilemma of course is how long do i hold.

sold up, as i have nice profit and can use that money to make a quick buck here and there. will be looking to get back in when i hear some good news.

Good for you Kivver, I am going to hold on for more good news.goal.

yes, could have been an own goal but like i said looking to get back in smartish.

Results for the year to 31 dec, 22 march.

Anyone still in IQE... some good buys late this afternoon ahead of results on Tuesday..
Any views as to how this is going to go ?
Should be positive news I would think :)

Yes, the buyers are coming back now.

I think results should be encouraging and show this company is in recovery, but profits (if there are any) may be slightly spoiled by the exchange rate. Lets hope for the best. Back in by the way, fingers crossed.

Welcome back Kivver, I agree with you on the exchange rate, but they might announce new contracts at the same time, without a shadow of doubt iqe are on the foot of a long ladder. It will be interesting to see what happens on Monday the day before the results.goal.

the last trading statement looks a bit sus to me now we have the final results out. Can anybody with more time than me work out how much they lost? thanks

Interesting two days, is there going tobe news??? thoughts any one.

IQE plc
AGM Trading Update Statement


IQE plc (IQE), the leading global outsource supplier of customised epitaxial
wafers to the semiconductor industry, is pleased to announce the results of its
AGM, together with an AGM trading update.

At the AGM, held at the Group's offices in Cardiff today, all resolutions were
duly passed. In addition, President and Chief Executive, Dr Drew Nelson,
provided the following trading update to the AGM;


'As anticipated in the annual results statement, revenues for the first half of
2005 will be substantially higher than either the first or second half of 2004.
Overall, unaudited Q1/2005 revenues increased by 20.2% in dollar terms and 15.3%
in sterling terms compared with Q1/2004. This represents the second consecutive
quarter of significant revenue growth since Q3/2004, and we expect this
sequential growth to continue, resulting in revenues for H1/2005 which are
expected to be approximately 20% higher than for H2/2004.


The increased revenues will result in substantially reduced losses and a
reduction in operating cash outflow for H1/2005 compared with previous half
years, although final repayment of some debt and additional working capital
consumption for inventory build-up as part of the large outsource contract,
which was signed late last year, and capital expenditure at Wafer Technology
will increase overall cash outflow in H1/2005 beyond EBITDA. Nevertheless, we
expect the half year cash position to be in-line with our 2005 budget levels.


The wireless sector has continued to be strong for the Group, with the large
outsource contract running to plan and other qualified customers increasing
their demand. Final qualifications, particularly in the Pacific Rim countries,
are coming to conclusion in the next few months, further increasing expected
demand. Output at IQE Inc in H1/2005 has been limited to some extent by
specific routine equipment maintenance programmes, but is expected to continue
to increase throughout H2/2005 as these programmes complete.



Visible laser demand, particularly for industrial applications, has continued to
be strong although this has been offset to some extent by delays to newer
product launches where IQE has become qualified by customers, but their product
takeoff has been slower than they had anticipated. Recent indications are that
these new products, particularly VCSEL based products, are gaining acceptance in
the marketplace and orders are now beginning to come in to reflect the expected
increase in demand. In addition, IQE Europe has made good progress with the
development of a high power DVD product for the booming Read/Write marketplace,
which is currently being evaluated for performance and reliability by some of
our key customers. We therefore expect significant revenue growth from this
division during the coming months.


Quarter on quarter revenue growth at IQE Silicon has been strong, albeit from a
low base, as more customers become qualified and existing customers continue to
ramp up their demand from IQE. Progress on IQE's proprietary strained silicon
development continues well, and it is anticipated that major milestones towards
a final Strained Silicon on Insulator product for the 65nm technology node will
be achieved in the next few months. Additional outsourced product development
programmes on behalf of customers have continued to progress as planned.


Finally, Wafer Technology's business has been slower than anticipated due to
temporary inventory readjustment in the LED marketplace, but excellent progress
has been made in developing improved surface finishes for the higher margin
laser markets, and these are currently under qualification by a number of
customers.


We continue to pursue and seek out further outsource contracts that will benefit
from the economies of scale and technological expertise that IQE Group companies
can offer, and good progress continues to be made in this respect, although the
scale of some of these opportunities necessarily means timing can be somewhat
unpredictable. We also continue to focus on cost control within the various
Group companies to ensure the breakeven revenue points continue to reduce.


As we achieve the expected revenue increases throughout H2/2005, we remain
confident that we will achieve our target of ongoing cash generation on a
monthly basis during this calendar year.'

What a good statement, up 9.5% in one hour... wow.

This is excellent news.. time to top up again, as, if this news is repeated again this yr (along with contract / other good news) it will rocket for sure.
We may even now see RHPS re-rate these as a "buy" from being on their watch list..... good luck all who sail with her..could be a beneficial journey,(imho).