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

Despite the above chart (which is wrong) 12 month high today @24.25p.

Trading update and Notice of Results

Expected H1 Financial Results

Revenues of £53.2m, up 2% (H1 2014: £52.0m)
Adjusted operating profit of £6.7m, up 5% (H1 2014: £6.4m)
Adjusted fully diluted EPS of 0.9p, up 5% (H1 2014: 0.86p)
Deferred consideration of £18.1m, down 42% (30 June 2014: £31.4m)
Net debt expected to be £31.1m, down 12% (30 June 2014: £35.5)
First half trading is ahead of the same period last year delivering growth in EPS and a further reduction in borrowings. The Group has performed in line with expectations and remains on track to achieve its full year expectations.

Good volume and a bullish engulfing candle!

Solid performance delivers growth in revenues, profits and cash flow


FINANCIAL HIGHLIGHTS

Solid financial performance in line with expectations and July trading update
2% revenue growth translated into 5% EPS growth
13% Increase in operating cash generation delivered further reduction in net debt, down 12%
Deferred consideration down 19% representing organic funding of previous acquisitions

OPERATIONAL HIGHLIGHTS

Increasing revenue diversity, with non-wireless revenues accounting for 24% of Group sales (H1 2014: 21%)
Photonics revenues up 28% y-o-y to £7.4m
Acquisition of exclusive license and option agreement with Translucent for 'cREO(TM)' technology announced separately today
Initial deployment of advanced solar wafers (CPV) for pilot systems
Stable wireless market, although some movement of expected Q2 sales into Q3 due to customer specific issue (non-epi)
Continued progress in new product development, notably in GaN technology for RF and power applications
Announced Joint Venture with Cardiff University to accelerate product development

Licence and Option Agreement

IQE signs an Exclusive Licence and Option Agreement to acquire Translucent Inc.'s Unique 'cREO(TM)' Technology
Cardiff, UK. 15 September 2015: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, announces that it has signed an agreement with Silex Systems Limited's subsidiary, Translucent Inc. ("Translucent"), for the exclusive licence of Translucent's unique and innovative 'Rare Earth Oxide' (cREO(TM)) semiconductor technology, and taken an option to subsequently acquire the technology (the "Agreement"). Translucent's cREO(TM) technology offers a unique approach to the manufacture of a wide range of innovative Compound Semonductor on Silicon products, including gallium nitride (GaN) on silicon (Si) for the burgeoning Power switching and RF technologies markets. It is protected by a wide ranging IP portfolio consisting of 74 granted patents, and 13 additional patent applications.

more....

KEEP an EYE

19.875p ( 19.75 v 20p )

Large fall recently and today a 2p drop on no much volume. There is support at around 20p. Last Interim results were good and also the CEO said so "This was a solid start to the year, in which we delivered continued improvement in our financial results and further reduced our borrowings."

Bought some @20p

It seems there was a stop loss somewhere due to the sharp drop today, is recovering now as buyers are returning.

There was a seller at 20p for some time once cleared the peace is back on the order book as slowly is getting stronger on the bid side

A large trade paying premium got the share moving higher again since reaching intraday low, offer was at 20.50p at time of trade, now 20.75p

15:54:01
20.5404p
97,305K

18 September 2015

The IC say Buy in an update

IQE are featured as a Buy in a Tip Update in the Investors Chronicle FYI as follows:
"IQE shares have further to run

The market greeted IQE's (IQE) return to profit by sending the shares down 7 per cent. A July trading update from the maker of ultra-thin wafers used in smartphones, solar panels and power convertor semiconductors already flagged that adjusted operating profit rose 5 per cent in the first half. So investors may have focused instead on a 2 per slip in revenues in the group's wireless segment, which accounts for three quarters of sales.

That was the only major weak spot in these results. Yet management blamed one customer's "temporary production disruption", which caused some expected sales from the second quarter to trickle into the third, rather than the wider issue of tepid handset sales in sluggish emerging markets.

There were no such problems for the non-wireless businesses. Thanks to successful customer product development programmes, IQE's photonics segment led the pack with 28 per cent revenue growth. Further diversification is expected, too, as the group made progress in launching new technologies for high-growth solar, power control and LED markets.

The group also added to its power-switching portfolio by confirming an exclusive licence and option agreement to acquire Translucent’s rare earth oxide semiconductor technology. IQE will pay a maximum $1.5m (£0.98m), with an option to purchase the technology for $5m within the 30-month licence period.

Broker N+1 Singer forecasts adjusted EPS of 2.5p, up from 2.4p in the year to December 2014.

IC View:
After a strong rally, the shares have fallen back slightly to trade on 10 times forecast earnings. This is a volatile business, but we still consider the rating too cheap considering the rapid growth prospects. Buy.

All four covering analysts are consistent in their forecasts - consensus is now 2.57p EPS this year d 2.86p EPS next year:

2015 2016
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
N+1 Singer 06-10-15 BUY 18.28 2.60 20.32 2.90
Peel Hunt LLP 02-10-15 BUY 17.78 2.63 20.14 2.98
Edison 29-09-15 None 17.14 2.50 19.03 2.77
Canaccord Genuity 15-09-15 BUY 16.10 2.40 17.50 2.50

It would be nice to see the back of all the large exceptionals which have been prevalent at IQE. I have a feeling that this will be the year where the only adjustments are the usual ones for amortisation and share-based payments.

IQE's partner in the USA (MACOM) are already demonstrating GaN products - this is a "blue sky" technology which is not far off now.

In addition, photonics revenues in H1 were up 28% y-o-y to £7.4m - this is another "blue sky" IQE technology which is finally producing impressive sales growth.

21p +0.75p

a bounce today on low volume but mainly buying

strong order book on the bid side with DEPTH of 21 v 14

21.25p +1p

Http://www.fool.com/investing/general/2015/12/03/heres-what-this-apple-inc-supplier-just-revealed-a.aspx
IQE wafers in the X16 modem from qualcomm ?

Zak Mir's CHART - 4 December 2015

As can be seen from the daily chart of IQE, the past couple of months have not being particularly positive given the way that we are trading in the wake of multiple failures through the 25p plus zone,. This along with the way that in the second half of last month we suffered the loss of the 200 day moving average at 23.34p, gives the overall impression of an extended topping out process.

But at least it can be seen how there is a last line of support, literally, in place from the summer of 2014. The uptrend line in question is running at 19p. Fans of the shares would therefore be looking to buy IQE on any dips towards this level, with only a weekly close below it suggesting that a more full blooded journey back to the sub 15p lows of autumn 2014 are on the way over the first quarter of 2016.

Back to 15p..?

Latest broker recommendation at 36P, and the price falls to half that.
*scratches head*. Again.

Final Results

Strong financial performance and positive outlook reflect strength of growing IP portfolio

IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, announces its final results for the year ended 31 December 2015.

Financial highlights

Revenues up 2% to £114.0m :
Photonics sales up 28% to £16.0m
New revenue stream with license income of £8.0m
Growth tempered by 11% reduction in wireless sales to £79.5m
Adjusted* operating profit up 8% to £19.0m (reported operating profit up ~3x to £21.2m)
Reported profit after tax up more than 10x from £2.0m to £20.1m
Adjusted* diluted EPS up 7% to 2.6p (reported diluted EPS up 12x to 2.9p)
Cash generated from operations up 41% from £14.9m to £21.0m
Balance sheet leverage down 22% to £40.3m
Net debt down 26% to £23.2m
Deferred consideration down 17% to £17.1m
* Adjustment to operating profit and EPS reflect non-cash charges and exceptional items as detailed in note 4

Operational highlights

Further diversification of revenues, driven by significant growth in non-wireless sales, which now account for c.30% of revenues (2014: 20%):
Continued double digit growth in photonics revenues, with increasing adoption for a wide range of applications including data centres, consumer applications, industrial processes, and fibre to the premises. Market outlook and strong pipeline support continuing double digit growth.
First licensing income reflects new revenue stream, with a combination of upfront and recurring income. This was earned from licenses to Joint Ventures (JVs). License income in Q1 of 2016 of approximately £2m.
Growing portfolio of epitaxial IP, with over 100 patents and a rich pool of trade secrets for the design and manufacture of advanced semiconductors :
Direct engagement with multiple Tier 1 OEMs reflect the increasing importance of epitaxial IP as a key enabling technology within electronic systems;
Market dynamics also reflect the increasing focus on advanced semiconductor materials technologies, with US competitor acquired for 3.5x revenues.
Joint ventures established in the UK and Singapore for the development and commercialisation of advanced semiconductor technologies. The significance of this technology also recognised by the UK government with a £50m commitment in January 2016 to fund a Compound Semiconductor Applications Catapult in Cardiff, UK.
The growth in revenue was partially tempered by the widely reported weakness in the smartphone market, which was exacerbated by inventory adjustments. However, the outlook for wireless remains attractive with recent gains in market share, contract wins, and new product qualifications for base station applications.
Continued progress in other markets :
Activity in the power semiconductor market continues to intensify. IQE has secured a strong IP position with cREO technology providing freedom to operate in this highly attractive market.
Advanced solar making good progress in space applications, mitigating slow progress in the terrestrial market which has been hampered by macro-economics. Outlook remains positive.
InfraRed maintains its market leadership position and, as announced on 26th January 2016 won a $3.7m contract with a leading global substrate manufacturer which underpins its strong outlook for the coming year.

Bought some at 17.71p
Higher volume and rising lately, stronger order book 20 v 15


IQE are namechecked by Peel Hunt today as regards the ARM takeover (as well as ACSO and NCC which I also hold):

"Despite the recent economic and political uncertainty, we note that an all-cash deal has been agreed. We continue to believe that UK technology companies could be acquisition targets for large global companies looking to add intellectual property or customers (the deal rationale for Softbank in our view) and expect to see further M&A activity in the sector.

We could see near-term investor interest in other semiconductor names (eg IQE and Imagination Technologies); global leaders (eg GBGroup, NCC, Accesso); Internet of Things/virtual/augmented reality plays (eg Telit, Bango); or larger UK tech names with strong free cash flow and dividend (eg Micro Focus)."

Https://www.theguardian.com/business/marketforceslive/2016/jul/18/ftse-boosted-by-arm-takeover-as-analysts-look-for-further-deals

21.25pp +3.25p

A very bullish statement on a very well undervalued stock ( short's work ) a lot to move up now for an EPS of 2.80p+ only on a PE of 10 is 28p not counting growth and Tech for a better rating.............

IQE - Trading Statement
Significant growth in revenues and profits reflect increasing revenue diversification

The Group announces that it expects to deliver a significant increase in revenues and profits for the first half of 2016, compared with the same period in 2015 and continues to reduce its balance sheet leverage*.

Sales in the first half are expected to be at least 15% higher than H1 2015, with the business enjoying an increasing diversification of revenues.

Photonics continues to grow rapidly, and is expected to deliver a double digit rate of growth in the first half. It is widely accepted that the Photonics market will continue its rapid growth over the coming years as Vertical Cavity Lasers ("VCSEL") and Indium Phosphide Lasers ("InP") are increasingly adopted for a wide range of end market applications. These include consumer products, fibre optic communications, data centres and industrial processes.

License income from joint ventures is expected to be c.£3.5m for the half year, with both joint ventures making good progress.

Wireless and InfraRed sales are expected to show a slight year on year increase.

The depreciation of Sterling against the US Dollar due to Brexit occurred shortly before the end of the half year, and as a result the financial impact on the first half was limited (translated at average exchange rates). However, the balance sheet impact was more significant, with a presentational increase in both assets and liabilities (converted at spot rate). Despite this, the Group has continued to reduce its leverage* in both Sterling and US Dollar terms due to its strong cash generation. Deferred consideration for previous acquisitions will be completely eliminated by September 2016. Other than the impact of currency fluctuations, we do not see any material impact of the decision to exit the EU on our business or prospects.

The Group made good progress on new product development and qualifications during the half, strengthening its IP position, and re-enforcing a positive outlook. The Board remains confident that the Group is on track to achieve full year expectations.

Notice of Results
The Group will report its half year results for 2016 on 13 September 2016.

Dr Drew Nelson, Chief Executive of IQE, said:
"The growth in IQE's sales and profits reflect the increasing diversification of its revenues, the growing breadth of its end markets, and the strength of its IP portfolio. As a result, the Group's strong cash generation continues to de-leverage* its balance sheet, with the deferred consideration from previous acquisitions on track to be completely eliminated by the end of September.

The Group's continued diversification of revenues is improving its resilience to end market fluctuations and our Photonics business continues to deliver strong double digit growth driven by a range of emerging end markets which are primed for significant and sustainable growth.

Our joint ventures have progressed well and have delivered license income of £3.5m, whilst our Wireless and InfraRed businesses were stable, delivering slight increases in revenues.

With the progress being made on new product qualifications, further product developments and with increasing revenue diversity, we remain on track to achieve full year expectations."

Peel Hunt Buy 22.25 30.00 30.00 Retains

haven't held these for a long time, though i recollect it was profitable at the time
order book still looks strong