IQE Regulatory News (IQE)

20 Jul 2006 07:02

IQE PLC20 July 2006 IQE plc Embargoed for release until 7:01am UK time on 20 July 2006 IQE plc ("the Company" or "IQE") Trading update IQE, the leading global supplier of customised wafer products and outsourcewafer services to the semiconductor industry, is pleased to provide a tradingupdate ahead of the formal first half preliminary results due to be presented on30 August 2006. Commenting on trading Dr Drew Nelson, IQE President & CEO said "Trading hascontinued in line with our pre Annual General Meeting Trading Update released on30 May 2006. During Q2, the overall business has continued to grow strongly. Thedetailed half year results are still to be finalised, although the Directorsexpect 2006 H1 revenues to be in the region of £14.5 million, an increase of£3.3 million (up 30%) on H2 2005 and an increase of £4.8millon (up 50%) on H12005. All of IQE's four business units have grown during the first half of 2006,particularly the wireless division, IQE Inc, located in the US, and IQE Siliconin the UK. Both the optical and substrate businesses have also grownsignificantly, and are both set to grow even more strongly in the second half.The EBITDA breakeven point of the Group has remained around the £30 millionrevenue region." "IQE has today also announced its intent to purchase the Electronics MaterialDivision (EMD) of EMCORE Corporation for $16 million, through the placing of newshares (''the Placing''). EMD is a leading provider of power amplifier productsused throughout the wireless industry in both handsets and infrastructure. Theaddition of EMD's products, employees and intellectual property will clearlyenhance IQE's position as the leading player in the epitaxial foundry industry.EMD's current and next generation products are extremely complementary to IQE'sproduct base and its customer base will increase IQE's customer reach to a broadspectrum of world class RF manufacturers. With both MOCVD and MBE wirelessplatforms, as well as a diverse range of MOCVD based optical products, IQE willbe able to offer its customers the broadest and most advanced range oftechnologies and products in the semiconductor industry. " Chairman, Dr Godfrey Ainsworth added "The acquisition of EMD is a perfect fitfor IQE. The Board is confident that IQE's existing cash resources together withthe further capital provided through the Placing will provide sufficient fundsnot only for the acquisition but for working capital to support the business andits growth expectations over the next 12 months." Contacts IQE plc +44(0) 29 2083 9400Dr Drew Nelson, President & CEOStuart Hall, CFOChris Meadows, Investor Relations This information is provided by RNS The company news service from the London Stock Exchange