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

Some more large buys filled at 11.50 pence towards close....Easy money and profit for the MMs again...picked up the stock from peeps at 10.50 pence and sold them at 11.50 pence to the large buyers about.

250,000 T BUY at 11.50 pence
100,000 T BUY at 11.50 pence.

Someone had an order in to purchase 350,000 shares and it was filled in the above quantities. The MMs picked up about 350,000 shares at 10.50 pence.

Incidentally, Level 2 stayed strong since lunchtime at 4 v 1.

what do you maKe of dils comments sue helen

I have him on squelch since this summer thesaurus as has been on deramping mode on most of my stocks here and on ADVFN. I take the person's comments with a pinch of salt.

good to hear.

a 35% rise says it all. That was some ramp suehelen, lol. can you do a few more of em and make us even richer.

Sue Helen doesn't like the truth , probably doesn't even know what truth is.

These have a Korean branch like QTR Sue ?

Oh and Kivver , since this thread started the share price has FALLEN dipstick so anyone buying in on the back of it is out of pocket !

sue helen now would be a good time to say something

Hi thesaurus, I increased my holding at 10.07 pence today.

Another large buy came through today from the large buys that MMs have got on their books to put through :

250,000 T BUY reported at 10.25 pence.

More mugs gave their shares away too cheaply to the MMs today and the big boys hence got theirs cheaper.

"WINS cannot stay still"

Happened on Friday when after close :

250,000 buy came through at 12.25 pence
250,000 T buy came through at 12.25 pence
250,000 VW buy came through at 12.25 pence
500,000 T buy at 12.00 pence before close

WINS could not stay still yesterday as well :

250,000 T buy came through at 11.50 pence
100,000 T buy came through at 11.50 pence

WINS could not stay still today as well :

250,000 T BUY came through for today at 10.25 pence at a time of 16.14 hrs.

MMs picked up 250K shares at 10.25-9.75 pence by panicking investors into selling and hence filled the 250,000 BUY at 10.25 pence....still some profit for them. That buy had to be filled at 10.25 pence hence WINS were up and down like a monkey with the offer price at 10.25 and 10.50 pence.

Compound Semiconductor.Net

IQE wins contract worth up to $25 million
8 November 2004

A pioneer of the outsourcing model, epiwafer provider IQE has agreed a two-year deal that could be worth up to $25 million with a US RF component manufacturer.

UK-based epiwafer supplier IQE has won a contract, potentially worth up to $25 million, with an undisclosed US RF component manufacturer.

The two-year deal is effective from 1 November. It involves IQE supplying over 90% of the anticipated demand for the customer's epitaxial material, which is used to produce components for mobile handsets.

IQE's customer, which it has worked with for several years, will now cease epiwafer manufacture at its own site. The epiwafers will instead be produced at IQE's US site, located in Bethlehem, PA, which specializes in MBE growth.

"This agreement with such a prominent supplier of RF components for the cellular phone market demonstrates a clear movement towards the outsourcing model within the compound semiconductor industry," remarked Drew Nelson, IQE's CEO.

IQE's recent annual revenue has been in the region of $30 million, and so this deal could increase the company's top-line figure by up to 40 percent.

http://compoundsemiconductor.net/articles/news/8/11/6/1

"IQE's recent annual revenue has been in the region of $30 million, and so this deal could increase the company's top-line figure by up to 40 percent".

The above bit is new in that it had not been included in any earlier press mentions.

Emcore :

Emcore is a us player; it also got a contract to supply epitaxial wafers to a RF devices manufacturer (back in August), see also:

http://www.emcore.com/product/electronic.php

so their forward guidance (4 Nov) may be relevant to iqe

"Reuben F. Richards, Jr., President and CEO of EMCORE Corporation, stated We are encouraged with the quarterly results. Revenues came in above guidance and we realized the operating efficiencies we guided to in last quarters conference call. Our number one goal continues to be achieving cash flow profitability. Our focus on reducing costs of goods and improving operating efficiencies places us on track to achieve cash flow break even on an operating income basis for the quarter ending March 31, 2005. Revenues for the first quarter of Fiscal 2005 are expected to be in the $26-$27 million range.

http://www.emcore.com/news/release.php?id=100

hi sue helen i know dont like talking about cfp but do you think that with the price so low it is a perfect time to top up and have you done so yourself

Hi thesaurus, I have answered your question on the CFP thread.

During the last four years, an update on trading has been announced in November...We should be getting a trading statement sometime soon.

Is it going to be a case of the big boys buying in heavily again before the trading update comes. The big boys were filling their boots at 8.5-9.5 pence days and weeks before the contract news came as well at the expense of retail investors who either couldn't spot that those large trades were buys or were just too blind to take notice of the trades going through. Some of us did spot them and bought in at 9.00 pence whilst the large buys were going through. Hence I put an emphasis on analysing the trades that go through along with the MM games. With a trading update due, don't you think now that the drop today and yesterday has been deliberate by the MMs so that they can fill the large buys on their books and get hold of any extras if they can.

The imminent trading update could be most positive one from IQE that has come before the final results in March 2005.

thanxs sue helen

promising.

Re : on the project funded by the Government announced in September 2004.

ElectronicsWeekly.Com


Resources Zone: R&D


by Melanie Reynolds

Friday 17 September 2004

Microscopy keeps UK chip firms in front



A project being funded 1m from the Government will help keep compound chip firm IQE ahead of its field, according to Chris Meadows, IQE's head of marketing.

"From a technology point of view it's very important because it keeps us in the forefront of technology," said Meadows. "As new tools and techniques develop it means we're keeping up with it, rather than retrospectively getting involved."

IQE is part of a UK consortium formed of Taylor Hobson, Applied Multilayers, National Physical Laboratory, and the University of Huddersfield which will all take part in the project.

The 'Semiconductor and Optical Layer Analysis and Definition using Interference Microscopy' (SOLADIM) project will aim to develop measurement techniques and international specifications for surface texture measurement of epitaxial wafers and thin film coatings.

"We currently produce epitaxial layers and analyse the quality of these materials, but there are limitations to what you can measure, purely because of the current analytical techniques available," said Meadows.

"Under this project there'll be new techniques and tools developed to allow us to take that to the next generation," he said.

The GaAs market

The Gallium Arsenide (GaAs) microelectronics industry is forecast to grow by seven per cent a year from 2003 to 2008, according to research firm Strategy Analytics.

The worldwide GaAs device market will grow from $2.7bn in 2003 to reach $3.7bn in 2008, and mobile phones will still account for a third of the market in 2008.

http://www.electronicsweekly.com/articles/article.asp?liArticleID=37424&liArticleTypeID=8&liCategoryID=1&liChannelID=109&liFlavourID=1&sSearch=&nPage=1

More mentions about the contract announced on Thursday last week :

ElectronicsWeekly.Com

by Alex Mayhew-Smith

Monday 8 November 2004

IQE wins $25m US contract



Welsh epitaxial wafer firm IQE has secured a deal to manufacture epitaxial materials for an unnamed RF component firm in North America.

IQE said the deal was worth $25m in an arrangement which would last for a minimum of two years. Any continuation of the arrangement will be negotiated after that time.

The firm's site in Bethlehem, Pennsylvania will supply more than 90 per cent of customer's demand for its RF wafer products. The products are used in mobile handsets, said IQE.

IQE's president and 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."

It is welcome news for IQE that has been struggling recently with losses. The firm has long been saying that an increasing shift to an outsourcing model would benefit the company.

http://www.electronicsweekly.com/articles/article.asp?liArticleID=37951&liArticleTypeID=1&liCategoryID=1&liChannelID=106&liFlavourID=1&sSearch=&nPage=1

Well done to Sue Helen and myself, when i started the original thread (iqe a recovery share) on the 16th August the SP was 7p and reached a high of 12.4 a couple of days ago, a rise of 77% in 2 months. Not bad eh suehelen, lets hope other people following the thread saw the great opportunity we did. I know im laughing all the way to the bank. You know what makes me laugh even louder some people have accused you of ramping!lmao.Hahahahahahaha