IQE plc · LSE:IQE
IQE — H1 2004 Earnings Presentation
13 slides from IQE's earnings presentation, Aug 18, 2004
Slide 1: IQE plc H1 2004 results, 18th August 2004
H1_2004_18Aug2004 18 th August 18th August 2004 2004 IQE plc Cypress Drive St.Mellons Cardiff, UK, CF3 0EG
Slide 2: IQE Group Companies
H1_2004_18Aug2004 IQE Group Companies Location Staff Technology MBE: (16 x Large machines) Bethlehem 68 MOCVD: (3 x AIX2600) MOCVD: (10 x AIX2600) Cardiff 70* (2 x AIX2400) * Includes IQE plc Cardiff 25 CVD: (6 x ASM) VGF: (70+ VGF Furnaces) Milton Keynes 52 LEC: (6 x MR Pullers) Group 215
Slide 3: Key Points
H1_2004_18Aug2004 Key Points In US$ terms, revenues increase to $14.6m from $14.4m (H2/2003) although sterling sales fell 8% to £8.0m (H2/2003: £8.7m) Operating loss down 14% to £5.4m (H1/2003: £6.3m) and pre-tax loss down 19% at £5.5m (H1/2003: £6.8m) Operating cash outflow down 7% at £4.6m (H1/200
Slide 4: Profit & Loss
H1_2004_18Aug2004 Profit & Loss 6 months to 30 Jun 6 months to 31 Dec All figures in £'000s Change 2004 2003 Sales 8,028 8,697 -669 Gross Profit / (Loss) (1,929) (1,715) -214 Research & Development (481) (668) -187 SG&A (2,988) (3,916) -928 Operating Profit / (Loss) (before exceptionals) (5,397) (6,
Slide 5: Cash Flow
H1_2004_18Aug2004 Cash Flow 6 months to 30 6 months to 31 6 months to 30 All figures in £'000s Jun 2004 Dec 2003 Jun 2003 Net inflow (outflow) from operations (4,642) (5,106) (4,993) Net inflow (outflow) from returns on 111 (51) (173) investments & servicing of finance Taxation 0 0 0 Capital Expendi
Slide 6: Working Capital Movement
H1_2004_18Aug2004 Working Capital Movement All figures in £'000s at 30 Jun 2004 at 31 Dec 2003 % Change Current Assets Net Stocks 3,978 3,464 +15% Debtors 2,356 2,439 -3% Cash 15,552 21,738 -28% 21,886 27,641 -21% Creditors Falling Due within one year (8,124) (8,606) Net Current Assets 13,762 19,035
Slide 7: Balance Sheet
H1_2004_18Aug2004 Balance Sheet All figures in £'000s As at As at 30-Jun-04 31-Dec-03 Fixed Assets 10,373 11,364 Net Current Assets 13,762 19,035 Total Assets less Current Liabilities 24,140 30,399 Long Term Liabilities 3,565 4,342 Shareholders Funds 20,575 26,057
Slide 8: Sales Needed to Achieve EBITDA Breakeven
H1_2004_18Aug2004 Sales Needed Sales Needed to to Achieve Achieve EBITDA EBITDA Breakeven Breakeven 30,000 25,000 20,000 £'000s 15,000 10,000 5,000 0 H1 01 H2 01 H1 02 H2 02 H1 03 H2 03 H1 04 H2 04
Slide 9: IQE Europe
H1_2004_18Aug2004 IQE Europe Major progress in developing materials for new customers Successful qualifications with Far East based customers for materials for consumer products Initial qualifications have resulted in pilot production lots with volumes expected to increase through second half of yea
Slide 10: IQE Inc
H1_2004_18Aug2004 IQE Inc Some setbacks during 2nd quarter as three major customers experienced sudden decline in orders from a major handset manufacturer Customer returns at all-time low of less than 0.3% IQE Inc remains fully qualified as approved supplier to a number of the world’s top RF compone
Slide 11: Exploit Leading Position in Strained Silicon
H1_2004_18Aug2004 Exploit Leading Position in Strained Silicon Developed and launched 20% Strained Silicon Provided samples to many of leading World players in sector Presented technical papers at several major conferences IQEs Strained Silicon chosen as benchmark material for major European 45nm IC
Slide 12: Strained Silicon: IQE Ranked #1 Overall
H1_2004_18Aug2004 Strained Silicon: IQE Ranked #1 Overall Strained Silicon Supplier survey by leading wafer supplier ranked IQE No.1 overall out of 9 suppliers Feedback on material universally positive However …….. Timescale for industry adoption not fixed Device feedback slow due to high Fab utilis
Slide 13: Trading Prospects
H1_2004_18Aug2004 Trading Prospects Increased wafer shipments (up 10.5% year on year) – expected to continue through second half of year Increased productivity and operational efficiencies leading to improved P&L (lower losses) despite reduced sterling revenues Successful new qualifications expected