The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
https://www.edisongroup.com/publication/short-term-resilience-long-term-growth/26700
Unsuprisingly they still see an upside here if IQE can demonstrate ability long term to make a proft.
They spent 4m+ on legal fees and are likely only to get back what they spent if the third party pays. Should boost figures for year. Albeit 35m loss after tax is a big figure to reverse. Quite a few one off costs in that. Edison gives adjusted loss of 7m for 2019.
Coronavirus
17 April 2020
Operations
Production continues at all of our global sites. Given the diversified nature of our global operations, operating conditions continue to differ across various sites, however the status remains unchanged from our most recent update:
United States: IQE’s sites remain operational given our status as a ‘critical infrastructure provider’. Nevertheless all members of staff are working from home as a default unless they are essential to production.
UK: As in the US, all members of UK staff who can work from home are doing so. Our sites are operating at minimal staffing levels and only where essential for production. In the past week, the UK Government has reiterated that, because manufacturing is a critical part of the economy, there are no restrictions being placed on it.
Asia Pacific: Taiwan and Singapore remain less impacted by the virus, so operations there are unaffected.
Market conditions
The smartphone handset market has seen the launch of new models from several OEMs in recent weeks. IQE remains actively engaged in supply chains for both wireless and photonics products for handsets, with good production levels being maintained.
The communications infrastructure market is showing signs of growth with economies emerging from lockdown likely to use 5G deployment as part of economic stimulus. There is already some evidence of this in Asian markets.
The market for products for military use continues to be strong with growing demand predominantly from the US defence contractors.
IQE continues to monitor risks of disruption at suppliers or customers due to COVID-19, with no issues identified this week.
FY 2019 results
As previously mentioned, IQE published a detailed trading update outlining its FY19 financial performance on 24 March following guidance from the FCA and FRC to delay announcements of Preliminary financial accounts. We continue to wait further guidance with regard to the timing of Full Year 2019 results.
Near-term outlook
There remains an increased risk to near-term demand and therefore revenues due to the impact of Coronavirus on the global economy. However, the total impact of these conditions and risks on IQE’s markets remains unquantifiable at this point in time.
Above all, ensuring the health and safety of our people remains our primary concern. Our business continuity sub-committee continues to monitor risk indicators and external guidance and is responding swiftly to this rapidly-evolving situation.
IQE is continuing to monitor the ongoing situation closely and will update this page on a weekly basis going forward.
Ennismore increased by 0.11% on 14th of April. They clearly thought 40p was too high. Does seem to be a general trend of shorters reducing. Then again 20-35p why wouldn't they? How much of the rise was due to shorters clearing? T Rowe Price have a lot less shares loaned out now.
See what 2019 results bring and if 2020 H1 figures are as reasonable as Tim Pullen suggests in his video. He seemed confident.
Anyone who bought below 20p could of doubled their money here.
https://www.edisongroup.com/edison-tv/executive-interview-iqe-4/26572
Q1 has reduced net debt. No real impact on business. Strong H1 figures. Suppliers and customer not yet affected. Seems positive. Of course reduced orders can still follow.
Overall no huge Corona impact yet.
Coronavirus
6 April 2020
FY 2019 results
IQE had been due to publish its Preliminary results for the year ended 31 December 2019 on 24 March 2020. Following guidance from the FCA and FRC to delay announcements of Preliminary financial accounts, IQE instead published a detailed trading update outlining its FY19 financial performance.
The Group will await further guidance from the FCA and the FRC with regard to the timing of the publication of its Full Year 2019 Results.
Global operations
IQE production is continuing at all of our global sites. Given the diversified nature of our global operations, there are differing operating conditions across our various sites, which are detailed below:
United States: IQE’s sites remain operational given its status as a ‘critical infrastructure provider’. Nevertheless all members of staff are working from home as a default unless they are essential to production.
UK: As in the US, all members of UK staff who can work from home are doing so. Our sites are operating at minimal staffing levels and only where essential for production.
Asia Pacific: Taiwan and Singapore are currently less impacted by the virus, so operations there are unaffected.
Supply chain and order book
We have not encountered any disruption to supply chains and our approach of dual or multi-sourcing helps to reduce exposure to disruption at any single supplier.
The order demand for IQE’s products has been unaffected and production output in March was above average levels for the previous 12 months.
Near-term outlook
There remains an increased risk to near-term demand and therefore revenues due to the impact of Coronavirus on the global economy. However, the total impact of these conditions and risks on IQE’s markets remains unquantifiable at this point in time.
Above all, ensuring the health and safety of our people remains our primary concern. Our business continuity sub-committee continues to monitor risk indicators and external guidance and is responding swiftly to this rapidly evolving situation.
IQE is continuing to monitor the ongoing situation closely and will update this page on a weekly basis going forwards.
Still drifting and volumes are back down to normal. Is this down to rumours of delayed iPhone 12 or just market correction from large jump from the TU. Guess market expects iqe to announce down turn in production at some point. Unless this is shorters? Hmmm
Coronavirus
26 March 2020
IQE production is continuing at all of our global sites. Given the diversified nature of our global operations, there are differing operating conditions across our various sites, which are detailed below.
A consistent factor is that IQE’s high-technology manufacturing business has a ‘low people intensity’ compared to other industries. As such, we are able to operate effectively and safely with reduced numbers of staff on site. We continue to implement enhanced cleaning regimes, appropriate social distancing measures and shift segregation techniques in order to best protect our staff.
The United States
A number of States have issued ‘stay at home orders’ to their residents, but IQE is not affected because we have been granted special exemption to carry on with production at all four of our sites. As a ‘critical infrastructure provider’ we are operating under direction from the Department for Homeland Security which deems IQE to have ‘a special responsibility to maintain (our) normal work schedule’. Nevertheless all members of staff are working from home as a default unless they are essential to production.
UK
As in the US all members of UK staff who can work from home are doing so and, in observance of the Government’s directions regarding essential trips for work, exercise, food and care, our sites are operating at minimal staffing levels and only where essential for production.
Asia Pacific
Taiwan and Singapore are currently less impacted by the virus, so operations there are unaffected.
Supply chain and order book
We have not encountered any disruption to supply chains and our approach of dual or multi-sourcing helps to reduce exposure to disruption at any single supplier.
The order demand for IQE’s products has been unaffected and production output in March is above average levels for the previous 12 months.
There remains an increased risk to near-term demand and therefore revenues due to the impact of Coronavirus on the global economy. However, the total impact of these conditions and risks on IQE’s markets remains unquantifiable at this point in time.
Above all, ensuring the health and safety of our people remains our primary concern. Our business continuity sub-committee continues to monitor risk indicators and external guidance and is responding swiftly to this rapidly evolving situation.
IQE is continuing to monitor the ongoing situation closely and will update this page periodically.
Edison have reduced revenue target for 2020 from 152.1m to 143.6m.
They have not included numbers from the arbitration as this is likely ongoing. It's unclear how much that case may bring to IQE. Or how much IQE has spent on legal fees to date. Edison suggest it is patent related. Which could be good news if they can protect their patents. After taxes they suggest a loss of 6.2m. Which after taxes they suggest will be less than 2019.
I think they expect the second half of year to be weaker due to Corona and the impact this will have.
On a plus note they are positive about Iphone 12 and revenue for 2021 has been put at 164.9m.
https://www.edisongroup.com/publication/well-positioned-to-withstand-near-term-uncertainty/26439
JP Morgan reduced by 0.12% on 23/03/2020 to 0.73%.
Closed at 27.5p today. Guessing a lot of shorter racing to the door. Up nearly 40%.
Over 16m shares traded. Plus 950k or so on Nexexchange. Another 1m trade today. Not sure if this is the same person each day.
At what point will Covid 19 actually impact IQE? Be interesting to see where this goes now.
https://investors.iqep.com/investors/update-on-confidential-legal-dispute/
'Update on confidential legal dispute
20 March 2020
IQE provides an update regarding an ongoing confidential legal dispute. The matter has been referenced previously in IQE’s 2018 Annual Report where the associated legal costs were disclosed as an exceptional cost.
An arbitration hearing relating to this matter was held in September 2019 and the Parties were recently notified of the decision. We can now confirm that, whilst the specific findings of the Arbitral Tribunal remain confidential, the Tribunal’s award was entirely in IQE’s favour.
In a related Court process, in which the counterparty has stated it is considering appealing the award, the case is not yet fully resolved. This means that, whilst IQE can maintain its position that the eventual outcome will not be adverse, any potential positive impacts cannot currently be estimated.'
So this popped up on weekend on IQE website. Results are go on Tuesday.
'IQE response to FCA guidance on financial results reporting
IQE notes the guidance issued on 21st March 2020 with regards to companies due to report their full year results over the course of the next two weeks.
The announcement from the FCA states that companies are requested to defer the publication of their preliminary financial statements for at least two weeks observing that, due to disruption caused by the outbreak of COVID-19, companies’ external auditors may not have had the necessary time to complete all of their auditing work.
Because IQE’s external audit work will be fully completed by the reporting date, we have taken the decision to proceed as planned with our results and will publish them at 7:00am on Tuesday, March 24 2020.'
'Coronavirus
20 March 2020
In the last 24 hours, the State of Pennsylvania, USA has directed all non-life-sustaining businesses to close in response to the Coronavirus outbreak. However, this directive does not apply to IQE, which is classed as a ‘sustaining business’ under the category of ‘semiconductor and electrical component manufacture’.
IQE therefore continues full operations at its Pennsylvania site, adhering to the US Centre for Disease Control (CDC) guidance. Production at all of IQE’s global facilities remains unaffected thus far.
As per our previous Coronavirus update, the total impact of these conditions and risks on IQE’s markets remains unquantifiable at this point in time. While we are prepared for the increased risk to revenues it presents, it remains that IQE has not yet experienced any resulting impact on its orders from customers.
Above all, ensuring the health and safety of our people remains our primary concern. Our business continuity sub-committee continues to monitor risk indicators and external guidance, and has formulated policies and potential actions in readiness for different scenarios. It is also ensuring regular and clear communications with our staff and other stakeholders.
IQE is continuing to monitor the ongoing situation with regards to the Coronavirus and will update this page periodically.'
https://investors.iqep.com/coronavirus/