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That's counter to articles I've read over the last couple of years Dogberry. There's no requierement for geofencing for Lidar systems. Why would there be but not for camera based ones? Maybe WAYMO are using it to get a headstart for certain use cases but that's just them. Most experts I've read about believe Tesla's use of cameras is pie in the sky and will never reach true self driving capabaility. Finally, most solutions are well below $100k. Even full LIdar systems were around $40k a couple of years back. Companies exploring the use of high powered VCSELS are using them to bring the price of such systems down to more mass market costs.
The use of lasers in autonomous vehicles is much trumpeted by some of the companies using WAYMO springs to mind. However there are several very big problems with it.
1) The areas where these autonomous vehicles operate are geo-fenced meaning the cars only work in the areas that have been expensively mapped by engineeers prior to letting the cars loose. They will NOT work in un-mapped areas.
2) Apparently these systems are very adversely affected by falling snow and rain (neither of these is much of a problem in Phoenix Arizona where Waymo operate.
3) The systems are currently very expensive estimates vary but 100000 dollars per vehicle or more are out there (not including the vehicle
The alternative system - cameras, ultrasonic sensors and radar (already installed in every Tesla vehicle) will when completed be capable of driving autonomously anywhere. The AI running the system is greatly dependent on data Tesla has over 3 billion miles of data now collected in numerous countries in all sorts of weather (Waymo several million miles).
In short I am not invested here for this application of VSCELS, I am quite hopeful for lots of sales in facial recognition for smart phones though.
At stockopedia they generally push their combined stock ranks rating, which is a combination of quality, value, and momentum. However if you check back quality and momentum alone seem to give better long-term results. Since value is the weak link here that bodes well, though it is far from being a certain predictor.
Stockopedia rankings in 2016 =95 fell to a low in May 2020 =17.
Now back up to =73.
This is a considerable improvement largely due to momentum.
Position in Universe549th / 1807
Yes very useful information and wonderful for us to know we are now going to drop to 41p
How thoughtful ;o)
Very interesting, thank you very much for letting us know!
...anyway glad I cashed out at 61p good luck here going to hit 40p before I reinvest before the bounce back in dec
use of VCSELs in future vehicles due to legislations around the world.
Osram is only one of the many suppliers of DMS to manufacturers and Tier1 suppliers . Euro Ncap mandatory DMS in all vehicles manufactured from 2022.
Happy to answer that. The Operational Highlights confirm all that we need to know about the prospects of the business over the next 12-18 months. i.e. Wireless return to growth / Over 50% year-on-year growth in H1 FY20 /
Strength in wafers for Power Amplifiers driven by 5G handset demand /Significant growth in GaN on SiC wafers for antenna elements deployed in 5G infrastructure roll-outs.
Photonics Over 20% year-on-year growth in H1 FY20 / Continued growth in existing major supply chain for 3D sensing driven by content gain / Strong demand for lasers for communications and industrial applications, and IR sensors for aerospace and military applications
OK we did not hit the 70's on results day but the tech sector is the one to be in (along with pharma) so once these figures are digested I forecast that the share price will move north as predicted providing a 12 month share price high of 75p+ and then an all time high of over 170p in the next 12months. The numbers are looking much better at IQE and this should translate favourably in to the share price rising nicely. Good luck, Brighty
Sorry, provision is £1.8M not $18M.
I'm with you on the opacity of reporting Qd22 although I doubt anyone could accurately state the financial performance of a business as complicated as IQE in a few paragraphs and do it with clarity. I would guess it's something to do with minimising tax so not a bad thing for investors but who can tell for sure.
The only detail I would add to your summary is where the write off came from. Seems there was a minimum royalty clause in the contract, "The onerous contract provision represents the cost of minimum future royalty payments payable to Translucent Inc. in the period prior to the expected commercial exploitation of the Group’s filter technology." It says the provision is £18M which doesn't match any of the headline figures in the report, lol! Maybe they have accepted the write off for multiple years in this report to keep it clear going forward.
Gotrader, I'm sure the new iPhone will arrive on time but will Trump get it banned in China ruining their plans and supply chains!?
Been a bit quiet here. Lots going on. IQE back above 50-60p. March time was a great time to buy at 20p.
So predicted 3.9m profit this year and 12m next year based on record revenue. Albeit revenue in H2 predicted to be 15m lower than H1. What bugs me is they have much higher revenue than 2018 but profits are much lower.
I think the share has dipped slightly today as these numbers were mostly already accounted for. Edison has still upgraded it's rating albeit suggest IQE is at a premium compared to rest of market. Worth a read. To be fair Edison had not updated these numbers in a while.
The increased fixed cost is still a slight issue here. Albeit falling debt is good news but that seems to have a caveat attached.
Wait and see what happens to Apple's new iphone. Will it arrive on time?
Sorry to be going on so long:
5. Then, line 5, finally the increase in EBITDA, which has turned into an increase in operating LOSS, which has turned into an increase in adjusted operating PROFIT, now becomes an increase in reported LOSS before tax (which then becomes a DECREASE in reported loss after tax!!). Wow!
I get that the wonders of company accounting are beyond me, but doesn't it all seem strange to you? Simply too much is unexplained. In fact the only explanation at all is for the increase in operating loss, gone into above. That is assuming that "operating loss" is the same as "reported operating loss" - since it is the same figure: £5.0m. And that explanation itself seems to me very threadbare: 'developmental intangibles' doesn't seem to mean anything, and 'patents and recognition of an onerous contract provision, related to cREO technologies' appear to relate to the same thing, and they have not yet reported any actual payments being made relating to cREO (nor have Silex I believe). And surely they have always known what the royalty was going to be. Just how did it need "recognising"?
I don't get these figures. I'm probably being completely ignorant here: but I would appreciate being shown how. I fear I'm going to be embarrassed! But it's better to know.
PS. Greetings seadoc. Yes, not easily forgotten! You seem to have avoided the typhoons.
.... and I still didn't know what it was.
I.e. I'm struggling to understand these figures. Please, if someone is able to shed some light on them I would really appreciate it.
1. Revenue up from £66.7m to 89.9. = 23.2 = 35%. Great, as expected. I'm happy.
2. Consequently adjusted EBITDA up from 7.4 to 16.3 = 8.9 = 120%. Even better, I'm dancing on the table.
3. BUT the operating loss has increased from 3.1 to 5.0. Loss has increased?? Why?? Ah, see below [with interpretation due to the lack of punctuation for the 2nd report running - which shows a real lack of respect for their investors]: "Reported operating loss of £5.0m primarily as a result of the non-cash write down of certain development intangibles, patents and recognition of an onerous contract provision, related to cREO technologies."
Incredibly vague! That is NOT reporting, it is obfuscating. Especially when they don't bother to punctuate: remember the famous book, "Eats shoots and leaves". However I've been interested in the progress of cREO for a while and remember that they bought the cREO patents from Silex Systems in Australia [which I also hold, in a much smaller way] for $5m in shares, and a royalty of - again VAGUE - between 3 and 6%. That could account for both the patents bit and the onerous cREO contract: are the "development intangibles" actually also the same? What on earth is a development intangible? I'm a shareholder and I would like to know, since it is affecting things so much. They say they have decided "to focus cREO development on filters and pause other cREO development due to re-assessed timing of anticipated revenue streams for the technology". Are they trying to do a Boris and wriggle out of the contract? I don't know how "onerous" 3-6% really is, but that was the contract they agreed to pay. It may be that alternative technologies are arising and what with the slowdown in the last 2 years they don't now see how to make a profit from them except in filters. Return to sender. Well, I suppose they have the right to try, though it's not honourable, and it would be nice if they were honest with us about it. Goodness knows, it's not as if they haven't disappointed deeply enough in the last 2 years anyway.
It's a good sum, this non-cash write down: it's turned the increase of £8.9m in EBITDA to an increase in operating LOSS of 1.9. £10.8m? Is that a correct way of seeing it? They said the "Reported operating loss of £5.0m primarily as a result of"... these things. But surely they've booked no value from these things anyway? Explanation would help here, please!
4. Next line: but then the"Adjusted operating profit / (loss)" has moved from a loss of 1.9 to a profit of 4.3. How does the increase of reported operating LOSS lead to an increase of adjusted operating PROFIT? Can anyone explain? It's a long time since school maths, and I know nothing of company accounting, but tax seems to come later.
To be co
Stoater, Thank you, and that day may not be far away but I remain short of IQE, for now.
Yes Seadoc, remember you too well. You were usually spot on with your forecasts as you shorted the share all the way down from over £1
Never spiteful or cheeky and always well reasoned in your analysis.
I am looking forward to the day when you turn up and say that IYHO the share is a stonking buy....lol.
hmm... Just visiting. Oldies may remember me. Done a bit of forensics. Top line, rubbish, bottom line poor Cardiff Uni.
Be interested to know what Brighty1 thinks to todays's sharp fall in the share price
Any thoughts then Brighty1 ??
Looks the relentless trade war between the USA and China is about to hit another low point as chip manufacturer SMIC is being targeted by the USA. I wonder how (if) this will affect IQE.
Have to say there are better tech opportunities out there, sold all my stock at 61 making a slight loss (Im not one of the old rampers who bought in long ago when it was above a quid). Got my eyes on a company called KAPE that's set to have a really good report next week to put me back in profit.
Over and out and all the best, Joe
I understand that wondergoals but it is at least a very low number. IQE pretty much always has a stronger H2. They are guiding here at least better than a 23% worse H2. I don't necessrily think this is a bad thing but it means the SP will tread water here intil the next trading update when we find out what at least ireally means.
A poster on ADVFN came up with the plausible explanation that they were guiding down 20% due to COVID risk. The wording around that risk has plenty of ambiguity. Do they know demand is dropping off or is it expected drop off if COVID affects their markets negatively?
Encouraed that major customers' results and guidance has recently been very bullish, that IQE say the first 2 months of H2 were strong and that the CEO says we are at the start of a non-linear curve. That's pretty strong guidance albeit in controvension of the actual guidance. I think we'll get another set of bullish customer results proir to IQE's December update which will guide much higher than 165M. In the meantime we've probably got a buying opportunity.
Rampers can say what they want but SP speaks for itself.. 65p avg last week now 61 and declining
basscadet - perhaps the key words are 'at least ...'
great performance by the company with lots more to come. well done!
Yes! A record first half revenue performance with Wireless return to growth
Over 50% year-on-year growth in H1 FY20 and Photonics
Over 20% year-on-year growth in H1 FY20
Revenue of £89.9m (HY 2019: £66.7m) representing 35% year-on-year growth and a record first half revenue performance for the Group, including an FX tailwind of £2.5m
Adjusted operating profit of £4.3m (HY 2019: loss £1.9m) representing a return to profitability driven by additional volume against the Group’s high operational gearing
Adjusted cash inflow from operations of £16.2m (H1 2019: £6.7m) representing c.100% Adj EBITDA conversion
Strong liquidity with a net debt of £7.4m, which has reduced by almost £9m since year end FY19 as a result of the strong operating cash generation and lower levels of capital investment
Reported operating loss of £5.0m primarily as a result of the non-cash write down of certain development intangibles, patents and recognition of an onerous contract provision, related to cREO technologies
Wireless return to growth
Over 50% year-on-year growth in H1 FY20
Strength in wafers for Power Amplifiers driven by 5G handset demand
Significant growth in GaN on SiC wafers for antenna elements deployed in 5G infrastructure roll-outs
Over 20% year-on-year growth in H1 FY20
Continued growth in existing major supply chain for 3D sensing driven by content gain
Strong demand for lasers for communications and industrial applications, and IR sensors for aerospace and military applications
Fingers crossed that we now have a 12 month share price high of 75p+ and then an all time high of over 170p in the next 12months. Good luck, Brighty