looks like that 15p gap has a real possibility of being filled now
Three in the breach......
1) The £ will plunge this year as No or yes unwinds. 2) CVP sounds close 3) Gomersals point below if I didn't get the wrong end of the stick. 4) Bounce after destocking finished. So it might look very different in 6 mths time..........just whistling in the dark Certainly no T/O in the wings
It's always jam tomorrow with this company, The problem is it doesn't appear. Wish somebody would take this company over and put us out of our misery.
Things IQE did not highlight
Drew Nelson made no mention of the situation at Greenborough, N.C. ( the former RFMD plant aquired in 2012 ). Included in the exceptional charges is a credit ( paper profit) of £9.74 million for deferred consideration that will now not be paid as trade discount to RFMD in the next few years, because the level of trade with RFMD is much lower than anticipated at the time of aquisition. These things are not easy to interpret from the annual accounts but by my calculation the liability in the balance sheet of 31/12/2013 for RFMD has reduced from £26.882 million by £9.74 million. If I am right on this, that is only 64% of the business that had been anticipated. Add to this, the fact that Greenborough had existing spare capacity (earmarked to produce CPV wafers for Solar Junction) and the factory utilisation must be horrendous. Now that RFMD are merging with Triquint, who knows what the future holds for Greenborough. On the plus side both RFMD and Triquint have reported good latest quarterly growth and strong forward order books and IQE suggest CPV will go into volume production in H2, so we might get better performance from Greenborough in the H2 results, which should help plug the sinkhole.
Reaction to results
Why Shares In IQE plc Dived Today By Rupert Hargreaves | Fool.co.uk – 20 minutes ago Share Print Companies: SHS RELATED QUOTES Symbol Price Change IQE.L 18.25 -1.75 Global semiconductor component supplier, IQE (LSE: IQE) is falling today, after the company reported a first half pre-tax loss for the six months to 30 June 2014. Down around 10% at time of writing, IQE's shares have reacted badly to today's news, although after reading through the results, I feel as if the market has overreacted. Strong underlying figuresstock exchange Indeed, for the first half of the year IQE reported a pretax loss of £2.3m, compared to profit of £2.5m the previous year. However, the group noted that its reported pre-tax loss included £4.8m non-cash exceptionals and £3.1m of restructuring costs. On an adjusted basis, after removing restructuring costs, the group's pre-tax profit rose by 11% during the period to £5.6m, from £5.1m as reported last year. Adjusted earnings per share increased to 0.86p, from 0.79p. That being said, IQE did report a fall in revenue for the period, from £63m as reported a year ago, to £52m. Management blamed this reduction on an industry-wide inventory reduction and the strong sterling to U.S. dollar exchange rate. Net debt for the period rose by £1.1m to £35.5m. Commenting on the results, Dr Drew Nelson, IQE Chief Executive, said: "The Group has again demonstrated the resilience of its business model through the delivery of continued growth in profitability despite the lower than expected revenues resulting from adverse effects of a significant inventory correction in the wireless industry and the translational effect of a strengthening of the sterling exchange rate against the US Dollar...Having established a world-leading position in the wireless communications market, IQE is beginning to replicate this across our other markets..." Plenty of good news Aside from today's profit warning, IQE is making solid progress across all of its markets. In particular, despite the de-stocking, which affected the majority of the semiconductor industry, IQE managed to achieve a 22% increase in Photonics revenue during the period. Photonics are opto-electronic products spanning a wide range of consumer and industrial applications such as infrared sensing and solar applications. What's more, IQE has history on its side, with 25 years of technology leadership with a rich heritage of intellectual property and unparalleled economies of scale. All in all, IQE is well placed to grow and City analysts are expecting a return to growth after today's speedbump. For example, on an adjusted basis, excluding restructuring costs, City analysts expect IQE to report earnings per share of 2.22p this year, which means the company is trading at a forward P/E of 9. Further, the City has earnings per share growth of 14% pencilled in for next y
Results / Correction
Re: MMs mark up. I forgot it was 20p at previous close. So, not so great. Apologies.
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