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
Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today.
SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.
Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.
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.
Be the first to receive our independent analysis and research, designed to help you generate more wealth for you and your family over the long term. Subscribe and save.