IQE, the semi-conductor wafer supplier, has produced an unspectacular set of results for 2003 but management remain upbeat that the pick up in the semi-conductor industry should enable the company to reach break-even in 2004. Having moved down from full listing to Aim in November, raising £ 17.7m via a placing, turnover fell 18% to £17.8m, due primarily to aggressive pricing to attract higher volume outsourcing and the adverse US dollar exchange rate movement, which reduced sales by approximately £1.6m. Pre-tax losses fell to £13.6m compared to £18m last year, which was due largely to non-recurring costs. The company has a strong net-cash balance of £15.7m. While wafer volumes increased 28% to 110,000 wafers, chief executive Drew Nelson stated that IQE is currently only operating at 25% capacity and needs to reach 35% to reach cash break-even. He also reports that the wireless, LED and Silicon markets in which the company supplies to are showing good recovery with the Fibre-optic market still slow but expected to show recovery in the second half. Despite having a strong potential pipeline for contracts with a number of customers near to completing the qualification stage, Nelson admits it has been tough to convince companies to outsource their wafer manufacture. House broker Evolution Beeson Gregory is forecasting a pre-tax loss of £10.1m for 2004 but if the management are right in teir predictions, IQE could be worth a punt.
Market cap: £46.5m
PE Forecast: n/a
Share price: 15p
FWD is a strategic communications agency specialising in corporate & financial services in the UK, across Europe and into Asia. We understand financial markets inside out. We know who you want to talk to. And we know the type of messages they want to hear. Find out more.
Live and pre recorded video & audio updates from companies on their latest news, results & AGMs through interviews and presentations. Find out more.
Gain instant access to some of the best-performing and fastest growing companies in the small cap arena. Sign up NOW!
This research provides a comprehensive overview of cash shells, companies that have become a significant feature on the Main Market, AIM and PLUS landscape. The full report (out June 2013) is now available to pre-order in PDF format for £295 (+VAT). Contact us for more info
This new report examines valuation metrics, cash balances and financial performance to provide dealmakers with all the tools they need to pinpoint undervalued companies on AIM. The full report is available to order in PDF format for £295 (+VAT). Order report here
Informative features and research on fast-growing companies, with AIM market and small cap tips, news on growth stocks, penny shares and junior stock market companies. Regular share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.
If you're interested in business tax updates visit our specialist tax guide website.
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
For great ideas on how to invigorate your portfolio visit the Growth Company Investor Show on June 10th. Click here for more details.