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Thursday, 8 February 2018

IQE plc : Response to Share Price Movement

IQE plc    

Published: 17:08 CET 08-02-2018 /GlobeNewswire /Source: IQE plc / : IQE /ISIN: GB0009619924

IQE plc : Response to Share Price Movement

8 February 2018

 

IQE plc

("IQE" or the "Company") 

Response to Share Price Movement

 

IQE plc (AIM: IQE) notes today's share price movement, which follows a report by Muddy Waters Capital LLC ("Muddy Waters").

Allegations contained within the report were addressed in IQE's announcement on 5 February 2018, in which IQE responded to a similar report published by ShadowFall Capital & Research LLP ("ShadowFall"). Information in the Muddy Waters report is either factually inaccurate or has previously been disclosed in IQE's annual reports and financial statements. It is also important to note that like ShadowFall, Muddy Waters also holds a short position in IQE and so duly profits from any near-term reduction in IQE's share price.

IQE continues to assure shareholders that the Company holds itself to the highest standards of corporate governance, transparency and integrity. Further details about the Cardiff joint venture ("CSC") with Cardiff University, and in particular its third-party engagements and expanding customer base can be found here: http://www.compoundsemiconductorcentre.com/projects  

IQE re-iterates that the CSC is a separate legal entity with a standalone board, separate management teams and a joint venture agreement that establishes governance procedures and decision making. 

CSC staff are employed under their own contracts. IQE provides support services including recruitment, to avoid the duplication of costs. The costs incurred by IQE are recharged at cost to CSC, as disclosed in IQE's annual reports and financial statements.

IQE's investment in intangible assets is clearly disclosed in both its interim reports and annual report and financial statements. As disclosed in IQE's H1 2017 interim report on 5 September 2017, IQE increased its investment during the first half of 2017 in relation to the introduction of a new VCSEL product for 3D sensing that has subsequently been adopted in mass market consumer applications.  This product ramped strongly during the second half of 2017, which, as reported in IQEs December trading update has enabled a doubling of IQE's photonics sales, and provides for strong continuing growth. 

As announced in the pre-close statement on 20 December 2017 and in the response to the ShadowFall report on 5 February 2018, the Company re-iterates that it expects full year revenue to be ahead of market expectations, and to be not less than £150 million for the year ending 31 December 2017. Wafer sales are on track to deliver strong double-digit growth in 2017 and to continue to diversify, while annual growth in Photonics is also expected to achieve triple-digit growth. The Company remains confident in its outlook for 2018 and beyond. The Group is scheduled to report its full year results for 2017 on 20 March 2018, and will provide forward looking guidance at that time.

Contacts:

 

IQE plc

Drew Nelson 

Phil Rasmussen

Chris Meadows

 

+44 (0) 29 2083 9400

Canaccord Genuity

Simon Bridges

Henry Fitzgerald-O'Connor

Richard Andrews

 

+ 44 (0) 20 7523 8000

Peel Hunt

Edward Knight
Nick Prowting

 

+44 (0) 20 7418 8900

FTI Consulting

Matt Dixon

Rob Mindell

Harry Staight

 

+44 (0) 20 3727 1000

 


 





This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: IQE plc, Pascal Close
Pascal Close, St Mellons, , Cardiff, CF3 0LW, , United Kingdom
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