AGM Statement

4 June 2018

IQE plc (AIM: IQE, "IQE" or the "Group") the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, announces that at its Annual General Meeting which will be held at 11:00 today, Godfrey Ainsworth, Executive Chairman of IQE will make the following statement:

"In our 2017 results announcement and Annual Report and Accounts, we stated that we would use H1 2018 to replenish wireless inventory channels which had been depleted as a consequence of the rapid ramp of VCSELs in H2 2017 and that photonics capacity would be released to qualify multiple other customers for VCSELs in H1 2018.  We are pleased to confirm strong wireless activity and that we are actively engaged in VCSEL qualification programmes with over 10 additional key VCSEL chip manufacturers, which are progressing in line with the board’s expectations.   We confirm our guidance for a 40:60 revenue split H1:H2 2018, with a shift back from wireless to photonics as we enter H2 2018.

"The commissioning of the new Newport Foundry is progressing to plan, with the first five reactors now all on site and in various stages of acceptance testing, commissioning and qualification. The second five reactors are expected to be delivered on site commencing Q3 2018, with acceptance testing, commissioning and qualification during the rermainder of 2018.

"Our new technologies portfolio, including GaN on Silicon, NanoImprint Lithography (NIL), Crystalline Rare Earth Oxide (cREO), and Quasi Photonic Crystals (QPC), is rapidly gaining strong traction and engagement with key customers around the globe for a wide variety of high volume applications.”

"On the Corporate front, following the tragic death of Mr Phillip Rasmussen ACA, the Group’s CFO in April, 2018, the Board appointed Dr Godfrey Ainsworth FCA, as Executive Chairman of the Group with immediate effect and he has been retained on a one year contract running to 31st March 2019. As previously announced, Dr Ainsworth will provide investor relations support to the CEO Dr Drew Nelson, and oversight to the Group Finance team, headed by Group Finance Director, Mr Neil Rummings ACA. The Board is also actively engaged with head-hunters to recruit a replacement permanent CFO.  The Nominations Committee is also working to recruit an additional Non-executive Director who will take over the Chair of the Audit Committee, which in the interim period, is chaired by Sir Derek Jones. Dr Ainsworth has also indicated to the Board that once all candidates have been appointed to these roles, he will seek to retire at the end of his one year contract. Mr Phil Smith, former Chairman of Cisco who joined the board in December 2016, will become Non-executive Chairman on the retirement of Dr Ainsworth.” 

The Group will announce its Interim Results for the six months ended 30 June 2018 on Tuesday, 4th September 2018. An analyst briefing will be held later that day at a time and venue to be announced. 

Contacts: