IQE PLC Iqe Plc : Interim Statement

 
TIDMIQE 
 
 
   IQE plc 
 
   Accelerating growth in photonics helps deliver strong uplift in profit 
and cash generation 
 
   Cardiff, UK. 13 September 2016: IQE plc (AIM: IQE, "IQE" or the "Group"), 
the leading global supplier of advanced wafer products and wafer 
services to the semiconductor industry, announces its unaudited half 
year results for the six months to 30 June 2016. 
 
 
 
 
GBP' MILLION (except EPS)             30 June 2016  30 June 2015  Change 
 
REVENUE                                       63.0          53.2    +18% 
ADJUSTED OPERATING PROFIT*                    10.8           6.7    +61% 
ADJUSTED PROFIT BEFORE TAX*                   10.1           5.9    +71% 
NET PROFIT                                    10.0           4.5   +122% 
ADJUSTED FULLY DILUTED EPS*                  1.46p         0.90p    +62% 
CASH GENERATED FROM OPERATIONS                12.4           4.5   +176% 
LEVERAGE (NET DEBT + DEFERRED 
 CONSIDERATION)                               35.4          49.0    -28% 
 
 
 
   FINANCIAL HIGHLIGHTS 
 
 
   -- Strong financial performance with double digit growth in revenues, 
      profits and cash generation 
 
   -- Revenues up 18% reflecting increasing revenues in all markets 
 
   -- Adjusted fully diluted EPS up 62% with the benefit of the Groups highly 
      geared business model 
 
   -- Increased profitability converted into 176% increase in cash generated 
      from operations 
 
   -- Balance sheet leverage reduced by 28% to GBP35.4m 
 
   -- Kopin deferred consideration balance of GBP10.7m settled in full in 
      January 2016 
 
   -- Remaining balance of deferred consideration will be settled in full by 
      the end of this month (September 16). 
 
 
 
   OPERATIONAL HIGHLIGHTS 
 
 
   -- Continuing diversification of revenues with non-wireless revenues 
      accounting for 31% of sales (H1 2015: 24%) 
 
   -- Accelerating photonics growth, with sales up 45% year on year 
 
   -- Wireless performing well with sales up 7% 
 
   -- Robust performance in Infrared and CMOS++ with sales up in both segments 
 
   -- License income of GBP3.5m from joint ventures, which continue to perform 
      well 
 
   -- Strong progress with new product qualifications underpin the pipeline for 
      continuing growth 
 
   -- Continuing to strengthen technology leadership and IP portfolio 
 
 
   Dr Drew Nelson, IQE Chief Executive, said: 
 
   "IQE's continued strong financial performance reflects the significant 
progress made in diversifying revenues over the past few years, and its 
growing portfolio of intellectual property.  A healthy performance in 
Wireless and IR has been supplemented by accelerated growth in photonics 
which is up 45%.  The photonics market is being driven by a diverse 
range of applications, and is at an early stage in the growth cycle. We 
expect our photonics business to continue to grow strongly for the 
foreseeable future. 
 
   IQE has developed a broad portfolio of intellectual property for advance 
semiconductor materials. In addition to the GBP3.5m of license income 
generated in the first half, this IP portfolio is increasingly enabling 
IQE to differentiate itself, and create a platform for continuing growth 
across its current and emerging markets.   IQE has a pipeline of new 
products and customer qualifications which underpin its growth ambitions, 
with programs expected to ramp through 2017 and 2018.    This includes 
new photonic applications, wireless base stations, advanced solar, and 
power switching applications." 
 
   Note : 
 
   * the Directors believe that the adjusted measures provide a more useful 
comparison of business trends and performance.  Adjusted measures 
exclude exceptional items, share based payments and non-cash acquisition 
accounting charges.  Reconciliation of the adjusted measures to the 
statutory measures are included in note 5. 
 
   Contacts: 
 
 
 
   IQE plc [phone] 
 
   Drew Nelson 
 
   Phil Rasmussen 
 
   Chris Meadows 
 
   Canaccord Genuity + 44 (0) 20 7523 8000 
 
   Simon Bridges 
 
   Cameron Duncan 
 
   Peel Hunt [phone] 
 
   Richard Kauffer 
 
   Euan Brown 
 
   Capital Access Group [phone] 
 
   Simon Courtenay 
 
   Note to Editors 
 
   IQE is the leading global supplier of advanced semiconductor wafers with 
products that cover a diverse range of applications, supported by an 
innovative outsourced foundry services portfolio that allows the Group 
to provide a 'one stop shop' for the wafer needs of the world's leading 
semiconductor manufacturers. 
 
   IQE uses advanced crystal growth technology (epitaxy) to manufacture and 
supply bespoke semiconductor wafers ('epiwafers') to the major chip 
manufacturing companies, who then use these wafers to make the chips 
which form the key components of virtually all high technology systems. 
IQE is unique in being able to supply wafers using all of the leading 
crystal growth technology platforms. 
 
   IQE's products are found in many leading-edge consumer, communication, 
computing and industrial applications, including a complete range of 
wafer products for the wireless industry, such as mobile handsets and 
wireless infrastructure, Wi-Fi, base stations, GPS, and satellite 
communications; and optical communications. 
 
   The Group also manufactures advanced optoelectronic and photonic 
components such as semiconductor lasers, vertical cavity surface 
emitting lasers (VCSELs) and optical sensors for a wide range of 
applications including optical storage, thermal imaging, leading-edge 
medical products, pico-projection, finger navigation ultra-high 
brightness LEDs, and high efficiency concentrated photovoltaic (CPV) 
solar cells. 
 
   The manufacturers of these chips are increasingly seeking to outsource 
wafer production to specialist foundries such as IQE in order to reduce 
overall wafer costs and accelerate time to market. 
 
   IQE also provides bespoke R&D services to deliver customised materials 
for specific applications and offers specialist technical staff to 
manufacture to specification either at its own facilities or on the 
customer's own sites. The Group is also able to leverage its global 
purchasing volumes to reduce the cost of raw materials. In this way, 
IQE's outsourced services, provide compelling benefits in terms of 
flexibility and predictability of cost, thereby significantly reducing 
operating risk. 
 
   IQE operates a number of manufacturing and R&D facilities across Europe, 
Asia and the USA. The Group also delivers its products and services 
through regional sales offices located in major economic centres 
worldwide. 
 
 
 
   INTERIM RESULTS 2016 
 
   1. INDUSTRY BACKGROUND 
 
   Integrated circuits or "chips" are the critical components which lie at 
the heart of all electronic devices.  These chips are primarily 
fabricated using silicon.  Silicon is an abundant semiconducting element 
which has enabled the Silicon chip market to grow to over  $350 billion 
pa.  However, as a material, silicon has fundamental limitations in its 
properties. 
 
   There is a range of other semiconducting elements which have much more 
advanced properties than silicon.  Compound semiconductors refers to the 
technology of combining these other semiconducting elements to create 
materials which overcome the inherent performance limitations of 
silicon.  This enables chip companies to produce  compound semiconductor 
chips which achieve functionality that silicon chips just cannot match. 
Indeed, the wireless communications revolution, fibre optic 
communication (the internet), and LED lighting would not be possible 
without compound semiconductors. 
 
   2. OVERVIEW OF IQE 
 
   IQE designs and fabricates compound semiconductor wafers.  It generates 
its revenues primarily from selling bespoke wafers to its customers, who 
in turn fabricate these wafers into compound semiconductor chips such as 
wireless communication chips, laser devices, or advanced sensors. IQE is 
also now leveraging its powerful IP portfolio to generate revenues from 
licensing activities. 
 
   IQE differentiates itself from its competitors through technology 
leadership, economies of scale, and dual site manufacturing for security 
of supply.  This has enabled IQE to develop a strong leadership position, 
where it is recognised globally as the market leader, with an estimated 
55% share of the wireless market and an unparalleled breadth of 
materials technologies. 
 
   IQE has developed a market facing organisational structure, based around 
its 6 key markets: Wireless, Photonics, Infrared, Solar, Power, and 
CMOS++. 
 
   3. RESULTS 
 
   The Group's results are reported after a number of one-off items and 
non-cash accounting charges. In aggregate, these resulted in a net 
charge of GBP0.2m in H1 2016 (H1 2015: GBP1.7m charge).   These items 
are fully detailed in note 5 in order to assist with an assessment of 
the Group's underlying business performance. The following commentary on 
the first half results is based on these adjusted profit measures. 
 
   First half revenues increased by 18% to GBP63.0m (H1 2015: GBP53.2m). 
Wireless sales were up 7% to GBP43.2m (H1 2015: GBP40.5m).   Photonics 
continued to enjoy strong double digit growth, with sales up 45% to 
GBP10.7m (H1 2015: GBP7.4m). License income from joint ventures was 
GBP3.5m (H1 2015: GBPnil), as both of the Group's joint ventures 
continued to perform in-line with expectations. 
 
   Adjusted gross margins increased from 24% to 28%, which included the 
benefit of a favourable sales mix.  The increase in sales and the higher 
percentage margin resulted in a GBP5.0m increase in adjusted gross 
margin from GBP12.9m to GBP17.9m. This was partially offset by higher 
adjusted SG&A, which increased from GBP6.2m to GBP7.3m as the Group 
invested in anticipation of continuing growth.  As a result, the 
adjusted operating profit increased by 61% from GBP6.7m to GBP10.8m. 
 
   Adjusted profit after tax increased from GBP6.3m to GBP10.2m, resulting 
in a 62% increase in adjusted fully diluted EPS from 0.90p to 1.46p. 

After exceptional charges of GBP0.2m (H1 2015: GBP1.7m), the reported 
profit after tax increased from GBP4.5m to GBP10.0m and the reported 
fully diluted EPS more than doubled from 0.65p to 1.43p. 
 
   The exceptional charge of GBP0.2m (H1 2015: GBP1.7m) relates to an 
exceptional gain on the reassessment of contingent deferred 
consideration of GBP2.2m (H1 2015: GBPnil), less non-cash accounting 
charges of GBP1.8m (H1 2015: GBP1.9m), and related deferred tax charges 
of GBP0.6m (H1 2015: GBP0.2m credit).  These items are fully detailed in 
note 5. 
 
   Net cash generated from operating activities increased more than 
threefold from GBP3.5m to GBP11.0m, due to the improvement in 
profitability and strong working capital management. 
 
   The Group's balance sheet leverage, which comprises bank borrowings and 
deferred consideration from previous acquisitions, reduced by 28% from 
GBP49.0m at 30 June 2015 to GBP35.4m at 30 June 2016.  Since the 31 
December 2015, net debt increased by GBP10.4m to GBP33.6m largely 
reflecting that in January 2016 the Group settled the final balance 
deferred consideration from the Kopin acquisition (GBP10.7m). Conversely, 
the deferred consideration balance reduced from GBP17.9m to GBP1.8m. The 
deferred consideration balance will be eliminated in full by the end of 
September 2016. 
 
   The Group's Net Assets at June 2016 were GBP171.9m (December 2015: 
GBP147.0m) which included a presentational foreign exchange benefit of 
GBP12.7m arising primarily from the translation of US Dollar denominated 
assets at spot rate which had shifted significantly following the Brexit 
vote. 
 
   The Group has approximately GBP139m of accumulated tax losses, which 
represents a potential reduction in future tax payable of approximately 
GBP40m. The adjusted effective tax rate of 1.8% which has reduced from 
6.7% in H1 2015 and 2.8% for FY 2015, reflects the anticipated rate for 
the full year, recognition of additional tax losses and other 
anticipated deferred tax movements. The reported effective tax rate of 
-4.2% (H1 2015: 15.4%, FY 2015: 4%) reflects that the Group has utilised 
its brought forward tax losses in Asia and the deferred tax impact of 
exceptional items. 
 
   4. VISION AND STRATEGY 
 
 
 
   Our Vision 
 
   The advanced properties of compound semiconductors will ensure that they 
play an increasingly significant role in the electronics industry in the 
21(st) century.  Through continuing innovation we are pushing the 
boundaries of their performance at the same time as reducing 
manufacturing costs.  We are now achieving the cost-performance 
thresholds that is driving their rapid adoption in a range of photonic 
applications.  Furthermore, we believe that the semiconductor industry 
is at an inflexion point.  The next 'quantum leap' in our industry is 
the adoption of compound semiconductors on silicon to combine the 
performance advances of compound semiconductors with the low cost of 
silicon manufacturing. 
 
   Our vision is to be the global number one provider of advanced 
semiconductor materials as these technologies enable the transformation 
of the electronics industry. 
 
   Our Strategy 
 
   Our strategy is to use our technology leadership and scale to deliver 
the performance, cost points and security of supply required for mass 
market adoption of compound semiconductor materials. 
 
   5. MARKETS 
 
   The Group has established six business units along market lines, to 
address its primary and emerging markets, the emerging markets of Solar 
and Power control are not yet significant enough to be separated in our 
segmental reporting. 
 
   Wireless 
 
   "Wireless" refers to a broad range of applications from mobile devices 
such as smartphones, tablets, routers, and WiFi through to large system 
applications such as base stations and radar.  It is IQE's largest 
market today, and accounted for 69% of sales in the first half of 2016 
(H1 2015: 76%).  This has been the main growth driver in IQE's business 
over the last decade. 
 
   The smartphone revolution was triggered by the launch of the iPhone in 
2007.  The consumer "feeding frenzy" that followed delivered double 
digit growth in the market for wireless materials, driven by both the 
increase in the volume of handsets sold and an increasing chip content 
in each handset. Through this period of strong growth IQE has built its 
global leadership position in wireless, and now enjoys an estimated 55% 
global market share.  However, the market has been more subdued over the 
past few years reflecting a lull in mobile phone handset innovation. As 
a result, we estimate that the materials market is currently growing at 
approximately 5% per annum. The supply chain has also been characterised 
by inventory corrections. 
 
   Nevertheless, compound semiconductors remain critical to wireless 
communication which remains an exciting growth area due to the 
continuing exponential growth in data traffic.   Indeed, we expect the 
growth rate of the wireless market to increase over the next few years 
due to multiple factors, including : 
 
 
   -- Innovation in handset technology (eg advanced photonic sensors) will 
      accelerate replacement cycles 
 
   -- The emergence of 5G communication 
 
   -- Technology upgrade in base stations "gallium nitride on silicon 
      technology" (GaN on Si) 
 
   -- Integration of "front end" components (potential of using IQE's cREO 
      technology) 
 
   -- The "Internet of Things" increasing the connectivity of devices 
 
 
   Photonics 
 
   Photonics relates to semiconductor applications which emit or detect 
light - essentially lasers and sensors.  It accounted for 17% of the 
Group's sales in the first half of 2016 (H1 2015: 14%).  It is the 
fastest growing segment within IQE, and delivered a growth rate of 45% 
in the first half following several years of strong double digit growth. 
 
   The critical materials technologies in this market are VCSEL (Vertical 
Cavity Surface Emitting Lasers) and InP (Indium Phosphide).  After 
several years of development, the advances in these technologies and the 
improvement in manufacturing processes means that these technologies are 
now hitting the performance and cost points necessary for mass market 
adoption. 
 
   The application space for VCSEL is very broad and includes data centres, 
consumer applications, industrial applications and health applications. 
The devices made from these materials include gesture recognition, 3D 
imaging, industrial heating, machine control, and biometrics to name but 
a few. 
 
   InP is the technology that is critical to fibre optics in 
telecommunications.  The main growth drivers here are  "Fibre to the 
Premises" (FTTx), data centre infrastructure and mobile base station 
backhaul.   The continued exponential growth in data traffic is driving 
the roll out of fibre "to the last mile" across the planet, the need for 
greatly increased data storage capacity with rapid access to data, and 
4G/LTE backhaul Fibre Optic links. . 
 
   The Photonics market is at an early stage of this growth phase.  Indeed, 
we believe that our photonics business is at the start of a long term 
and exciting high growth curve.  Our growth ambitions are underpinned by 
an impressive pipeline of programmes with blue chip customers for high 
volume applications. 
 
   Infrared 
 
   We are the market leader in the supply of indium antimonide (InSb) and 
gallium antimonide (GaSb) materials used in high resolution infrared 
systems, with an estimated market share of approximately 80%. This 
segment accounted for approximately 7% of Group's sales in the first 
half of 2016. 
 
   Sales are currently concentrated in defence related applications, but 
through our engagement in programmes in consumer, medical and industrial 
imagining, we expect this segment to increasingly transition into new 
markets over the coming years. 
 
   Power 
 
   "Power" relates to the use of semiconductors in Power Switching and LED 
lighting applications.   IQE is developing materials solutions to 
address some of the key technological challenges faced in these markets. 
The size and scale of these markets are many time larger than IQE's 
existing markets, so these represent truly transformational 
opportunities for IQE. 
 
   Power switching devices are used where electricity is switched between 
AC and DC, or where voltage is switched.  The happens throughout 
electricity generation and distribution, and in virtually all 
applications that are powered from the grid, from transformers in 
industrial machinery and electric vehicles, through to power supplies 
for your laptop. The market for power switching chips is estimated to be 
worth approximately $12 billion, which is  approximately 4x the size of 
the existing wireless power amplifier chip market. Again, a truly 
transformational opportunity. 
 
   At present, these power switching chips are made using silicon, which 
has performance limitations.  Accordingly, the industry is investing 
heavily in a step change in technology to overcome this inefficiency and 
deliver a high performing lower cost solution.  That step change is the 
adoption of a hybrid compound semiconductor on silicon technology called 
GaN on Si.  IQE is at the forefront of the materials development. 
 
   We are all becoming accustomed with LED technology as it gathers 
momentum in a range of lighting applications from automotive lighting to 
office lighting and residential lighting.  The prevalent materials 
technology in this in industry is currently "gallium nitride on 
sapphire", but it is widely accepted that GaN on Si will become an 
important technology in this space. This provides a major opportunity 
for IQE to leverage its development of GaN on Si for Power into this 
adjacent market. 
 
   Advanced Solar 
 
   We are all familiar with solar panels (photovoltaics) as a means of 
generating electricity.  Solar panels are largely made from silicon, 
which is inherently inefficient in converting sunlight into electricity, 
typically achieving efficiencies of only 15-20%.  In contrast, compound 

semiconductors are significantly more efficient, and today deliver 
efficiencies of over 44%.   Furthermore, there is a technology roadmap 
to increase this efficiency to over 50%.  With its supply chain partners, 
IQE has developed technology leadership and is working to qualify this 
into production. 
 
   There are two key markets for this Compound Semiconductor solar 
technology : "space" ( satellite power supplies) and "terrestrial" 
(renewable energy).    The adoption of this technology in terrestrial 
has been slower than anticipated, largely due to the collapse of the 
global oil price and over-supply within the silicon panel market, but 
this remains a major market opportunity as these issues resolve 
themselves.  In the meanwhile, we have been switching our primary focus 
to penetrating the space market, where this technology is already 
embedded. As technology leader we have a clear strategy to penetrate the 
market and win market share.  The current pipeline of activities 
suggests that IQE can expect to see good commercial progress in the next 
1-2 years. 
 
   CMOS++ 
 
   The ever-increasing demand for higher speed and improved performance 
from today's electronic devices is ushering in a new era of 
semiconductor materials that combine the scale of the silicon industry 
with the power and performance of compound semiconductors. 
 
   IQE is at the forefront of developing this technology, and is working 
with a range of partners from global industry giants, universities and 
governments to dynamic start-ups.  As a result, we have developed an 
enviable portfolio of technologies and patents which position us well to 
increasingly participate in the continuing evolution of the 
semiconductor industry. 
 
   6. INNOVATION AND COLLABORATION 
 
 
 
   Intellectual property relating to advanced materials is playing an 
increasing role in the evolution of the semiconductor industry. It is 
widely accepted that advanced materials are needed to overcome the 
challenges and realise the opportunities facing the electronics 
industry. This is evident from recent M&A activity in the "Compound 
Semiconductor" CS space, including the formation of a Joint Venture by 
Qualcomm and TDK (January 2016), the acquisitions by II-VI Inc of 
Epiworks (January 2016) and Anadigics (March 2016). The prices being 
paid in these deals are running into revenue multiples of 3x to 4x, 
reflectingstrong recognition of the value and importance of CS materials 
technology to future advanced systems deployment.. 
 
   IQE has been at the forefront of advanced semiconductor technology for 
over a quarter of a century. It has built a reputation within the CS 
industry for an unparalled breadth and depth of its materials 
technologies and capabilities. This is now becoming increasingly 
recognised outside the CS industry, where IQE is becoming viewed as the 
'go to' advanced materials innovator and provider. Indeed, IQE is now 
engaged directly with a number of Tier 1 OEMs, bypassing the normal 
"materials-chip-OEM" model. 
 
   There are many examples in history that show collaboration is a powerful 
tool in accelerating innovation. The benefits are even greater when 
whole ecosystems "cluster" in the same location, breaking down the 
barriers created by geography and time zones. Indeed, Silicon Valley in 
California is a prime example of how the benefit of clustering can 
propel an industry to a global platform. It is the benefits of 
collaboration and clustering that underpin IQE's strategic rationale for 
the joint venture partnerships it announced during 2015, and its highly 
successful Open Innovation programme (openiqe.com). 
 
   The silicon supply chain is no stranger to the benefits of clustering. 
Indeed, there are 4 clusters within Europe which are centred around the 
development and commercialisation of Silicon technology. These are 
strongholds of innovation and value creation, with over 800 companies 
and 150,000 employees. IQE's vision is to be at the epicentre of the 
world's first compound semiconductor cluster, based in the UK. There has 
been significant progress in making this a reality over the past 12 
months, and momentum continues to build: 
 
 
   -- Cardiff University is investing c.GBP75m in the creation of the Institute 
      of Compound Semiconductors as part of its GBP300m innovation campus; 
 
   -- IQE and Cardiff University invested GBP24m in the formation of the 
      Compound Semiconductor Centre Joint Venture; 
 
   -- In January 2016 the Chancellor of the Exchequer announced GBP50m funding 
      for a Compound Semiconductor Catapult in Wales, which will leverage a 
      further GBP100m funding from Innovate UK and Industry; and, 
 
   -- In March 2016, the Cardiff City Region Deal was announced which 
      identifies the emerging CS cluster in Cardiff as one of its 5 headline 
      goals. 
 
 
   This level of investment is recognition of the increasing significance 
of compound semiconductor technology in the electronics industry, and 
the UK's ambitions to build on its existing academic and industrial 
strengths to develop a world class end-to-end supply chain for compound 
semiconductor technologies in the UK. 
 
   6. CORPORATE GOVERNANCE 
 
   Following the AGM on 23(rd) June 2016, the Nominations Committee of the 
Board has appointed an independent external advisor to undertake an 
executive search for Non-Executive Director candidates. In addition, the 
Remuneration Committee has appointed independent external advisors to 
undertake a benchmarking of Executive Remuneration. 
 
   7. CURRENT TRADING AND OUTLOOK 
 
 
 
   The Group has continued to make good strategic, operational and 
financial progress in 2016, and has a clear vision and roadmap for the 
continuing growth of the business.   Trading in the second half has 
commenced well, and with the benefit of a strong pipeline and increasing 
revenue diversification the Board remains confident that the Group is on 
track to deliver full year earnings in line with expectations. 
 
   Dr Drew Nelson, CEO 
 
 
 
 
 
CONSOLIDATED INCOME STATEMENT           6 months to  6 months to  12 months to 
                                        30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)            Note   Unaudited    Unaudited     Audited 
Revenue                                      63,010       53,219       114,024 
Cost of sales                              (45,766)     (40,980)      (83,372) 
Gross profit                                 17,244       12,239        30,652 
Other income                                  2,163            -           779 
Selling, general and 
 administrative expenses                    (8,270)      (7,160)      (15,452) 
Profit on disposal of property, 
 plant and equipment                            137            -         5,187 
Operating profit                             11,274        5,079        21,166 
Net finance costs                             (802)      (1,145)       (1,790) 
Adjusted profit before tax                   10,061        5,871        17,574 
Adjustments                          5          411      (1,937)         1,802 
Profit before tax                            10,472        3,934        19,376 
Income tax (charge)/credit                    (444)          607           773 
Profit for the period                        10,028        4,541        20,149 
Profit attributable to: 
Equity shareholders                           9,936        4,388        19,864 
Non-controlling interests                        92          153           285 
                                             10,028        4,541        20,149 
 
Basic earnings per share           6          1.49p        0.67p         3.00p 
 
Diluted earnings per share         6          1.43p        0.65p         2.90p 
 
 
   Adjusted basic and diluted earnings per share is presented in Note 6. 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF                               6 months to  6 months to  12 months to 
COMPREHENSIVE INCOME                                    30 Jun 2016  30 Jun 2016  31 Dec 2015 
 
(All figures GBP'000s)                                   Unaudited    Unaudited     Audited 
Profit for the period                                        10,028        4,541        20,149 
Currency translation differences on foreign currency 
 net investments*                                            12,713      (1,756)         3,165 
Total comprehensive income for the period                    22,741        2,785        23,314 
Total comprehensive income attributable to: 
Equity shareholders                                          22,333        2,605        23,000 
Non-controlling interests                                       408          180           314 
                                                             22,741        2,785        23,314 
 
   * This may be subsequently reclassified to the income statement when it 
becomes realised. 
 
 
 
 
 
 
                                       As At        As At          As At 
CONSOLIDATED BALANCE SHEET       30 Jun 2016  30 Jun 2015    31 Dec 2015 
 
(All figures GBP'000s)             Unaudited    Unaudited      Audited 
 
Non-current assets : 
Intangible assets                     95,990       81,309         86,843 
Property, plant and 
 equipment                            73,331       64,968         65,154 
Deferred tax asset                    15,745       13,239         14,210 
Financial Assets                       8,000            -          8,000 
Total non-current assets             193,066      159,516        174,207 
 
Current assets : 
Inventories                           23,767       18,857         21,215 
Trade and other receivables           25,838       23,483         23,050 
Cash and cash equivalents     8        4,311        5,356          4,644 
Total current assets                  53,916       47,696         48,909 
Total assets                         246,982      207,212        223,116 
 
Current liabilities : 
Borrowings                    8      (3,344)      (3,596)        (3,241) 

Trade and other payables            (33,083)     (40,306)       (43,693) 
Provisions for other 
 liabilities and charges      9      (1,351)      (1,432)        (1,116) 
Total current liabilities           (37,778)     (45,334)       (48,050) 
 
Non-current liabilities : 
Borrowings                    8     (34,553)     (32,875)       (24,626) 
Other payables                             -        (484)          (484) 
Provisions for other 
 liabilities and charges      9      (2,778)      (3,369)        (2,922) 
Total non-current 
 liabilities                        (37,331)     (36,728)       (28,032) 
Total liabilities                   (75,109)     (82,062)       (76,082) 
Net assets                           171,873      125,150        147,034 
 
Equity attributable to 
shareholders : 
Share capital                10        6,723        6,621          6,655 
Share premium                         50,609       49,282         49,600 
Retained earnings                     80,136       54,724         70,200 
Other reserves                        31,564       12,224         18,146 
                                     169,032      122,851        144,601 
Non-controlling Interest               2,841        2,299          2,433 
Total equity                         171,873      125,150        147,034 
 
 
 
 
 
 
   CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
 
 
 
 
                                                      Exchange 
Unaudited                  Share    Share   Retained    rate     Other    Non-controlling   Total 
 (All figures GBP'000s)   capital  premium  earnings  reserve   reserves     interests     equity 
 
Balance as at 1 January 
 2016                       6,655   49,600    70,200     7,925    10,221            2,433  147,034 
 
Profit for the period           -        -     9,936         -         -               92   10,028 
Foreign exchange                -        -         -    12,397         -              316   12,713 
Total comprehensive 
 income                         -        -     9,936    12,397         -              408   22,741 
 
Employee share scheme           -        -         -         -     1,021                -    1,021 
Issues of ordinary 
 shares                        68    1,009         -         -         -                -    1,077 
Total transactions with 
 owners                        68    1,009         -         -     1,021                -    2,098 
 
Balance as at 30 June 
 2016                       6,723   50,609    80,136    20,322    11,242            2,841  171,873 
 
                                                      Exchange 
Unaudited                   Share    Share  Retained      rate     Other  Non-controlling    Total 
 (All figures GBP'000s)   capital  premium  earnings   reserve  reserves        interests   equity 
 
Balance as at 1 January 
 2015                       6,603   49,108    50,336     4,789     8,220            2,119  121,175 
 
Profit for the period           -              4,388         -         -              153    4,541 
Foreign exchange                -        -         -   (1,783)         -               27  (1,756) 
Total comprehensive 
 income/(expense)               -        -     4,388   (1,783)         -              180    2,785 
 
Employee share scheme           -        -         -         -       998                -      998 
Issues of ordinary 
 shares                        18      174         -         -         -                -      192 
Total transactions with 
 owners                        18      174         -         -       998                -    1,190 
 
Balance as at 30 June 
 2015                       6,621   49,282    54,724     3,006     9,218            2,299  125,150 
 
 
 
 
 
                                                      Exchange 
Audited                    Share    Share   Retained    rate     Other    Non-controlling    Total 
 (All figures GBP'000s)   capital  premium  earnings  reserve   reserves        interests   equity 
 
Balance at 1 January 
 2015                       6,603   49,108    50,336     4,789     8,220            2,119  121,175 
 
 
Profit for the year             -        -    19,864         -         -              285   20,149 
Foreign exchange                -        -         -     3,136         -               29    3,165 
Total comprehensive 
 income                         -        -    19,864     3,136         -              314   23,314 
 
 
Share based payments            -        -         -         -     2,001                -    2,001 
Issues of ordinary 
 shares                        52      492         -         -         -                -      544 
Total transactions with 
 owners                        52      492         -         -     2,001                -    2,545 
 
Balance at 31 December 
 2015                       6,655   49,600    70,200     7,925    10,221            2,433  147,034 
 
 
 
 
 
                                                       6 months to  6 months to  12 months to 
CONSOLIDATED CASH FLOW STATEMENT                       30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)                                  Unaudited    Unaudited     Audited 
 
Cash flows from operating activities : 
Adjusted cash inflow from operations                        13,010        5,322        22,575 
Cash impact of adjustments                          5        (605)        (773)       (1,604) 
Cash inflow from operations                         7       12,405        4,549        20,971 
Net interest paid                                            (723)        (809)       (1,403) 
Income tax paid                                              (684)        (192)         (459) 
Net cash generated from operating activities                10,998        3,548        19,109 
 
Cash flows from investing activities : 
Acquisition deferred consideration for 
 Kopin Wireless                                           (10,650)            -             - 
Capitalised development expenditure                        (2,784)      (2,109)       (4,979) 
Investment in other intangible fixed assets                  (755)        (216)       (1,198) 
Purchase of property, plant and equipment                  (4,323)      (1,296)       (3,825) 
Proceeds from disposal of property, plant and 
 equipment                                                     258            -             - 
Net cash used in investing activities                     (18,254)      (3,621)      (10,002) 
 
Cash flows from financing activities : 
Issues of ordinary share capital                                74          191           544 
Repayment of borrowings                                    (1,765)     (13,125)      (15,109) 
Increase in borrowings                                       8,269       12,830         4,349 
Net cash generated from/(used in) financing 
 activities                                                  6,578        (104)      (10,216) 
Net decrease in cash and cash equivalents                    (678)        (177)       (1,109) 
Cash and cash equivalents at the beginning of the 
 period                                                      4,644        5,584         5,584 
Exchange gains/(losses) on cash and cash 
 equivalents                                                   345         (51)           169 
Cash and cash equivalents at the end of 
 the period                                         8        4,311        5,356         4,644 
 
 
 
   1 BASIS OF PREPARATION 
 
   These interim results have been prepared under the historical cost 
convention and in accordance with International Financial Reporting 
Standards ("IFRS") and interpretations in issue at 30 June 2016. 
 
   The interim results were approved by the Board of Directors and the 
Audit Committee on 13 September 2016. The interim results do not 
constitute statutory accounts within the meaning of section 434 of the 
Companies Act 2006 and have not been audited.  Comparative figures in 
the interim results for the year ended 31 December 2015 have been taken 
from the published audited statutory financial statements.   All other 
periods presented are unaudited. Statutory accounts for the year ended 
31 December 2015 were approved by the Board of Directors on 22 March 
2016 and were delivered to the Registrar of Companies. The report of the 
auditors on those accounts was unqualified, did not contain an emphasis 
of matter paragraph and did not contain any statement under section 498 
of the Companies Act 2006. 
 
   IQE plc is a public limited company incorporated in the United Kingdom 
under the Companies Act 2006. The Company is domiciled in the United 
Kingdom and is quoted on the Alternative Investment Market (AIM). 
 
   As permitted these interim results for the half-year ended 30 June 2016 
have been prepared in accordance with UK AIM rules and the IAS 34, 
'Interim financial reporting' as adopted by the European Union. These 
interim financial results should be read in conjunction with the annual 
financial statements for the year ended 31 December 2015, which have 
been prepared in accordance with IFRSs as adopted by the European Union. 
The accounting policies applied are consistent with those of the annual 
financial statements for the year ended 31 December 2015, as described 
in those annual financial statements. 
 
   The financial information contained in these interim results has been 
reviewed by the Company's auditor in accordance with ISRE 2410 however 
this does not constitute an audit. 
 
   Having considered the Group's forecasts the Directors have formed a 
judgment that there is a reasonable expectation that the Group has 
adequate resources to continue in operational existence for the 
foreseeable future. For this reason the Directors continue to adopt the 
going concern basis in preparing the condensed consolidated financial 
information. 
 
   2 ACCOUNTING POLICIES 
 
   The accounting policies adopted are consistent with those of the annual 
financial statements for the year ended 31 December 2015, as described 

in those financial statements on pages 60 to 65. 
 
   Recent accounting developments 
 
   In preparing the condensed consolidated half-yearly financial 
information the Group has adopted the following Standards, amendments 
and interpretations which are effective for 2016 and will be adopted for 
the year ended 31 December 2016: 
 
 
   -- Annual improvements 2014 (2012-2014 cycle) 
 
   -- Amendment to IFRS 11, 'Joint arrangements' on acquisition of an interest 
      in a joint operation 
 
   -- Amendment to IAS 16, 'Property, plant and equipment' and IAS 
      38,'Intangible assets', on depreciation and amortisation 
 
   -- Amendments to IAS 27, 'Separate financial statements' on the equity 
      method 
 
   -- Amendment to IAS 1, 'Presentation of financial statements' on the 
      disclosure initiative 
 
 
   The adoption of these standards and amendments has not had a material 
impact on the interim financial information. 
 
   The following new standards and amendments to standards and 
interpretations have been issued but are not yet endorsed for annual 
periods beginning after 1 January 2016 (noted below), and have not been 
adopted in preparing the condensed consolidated half-yearly financial 
information. 
 
 
   -- IAS Amendments to IAS 7, Statement of cash flows on disclosure initiative 
 
   -- Amendments to IAS 12,'Income taxes' on Recognition of deferred tax assets 
      for unrealised losses 
 
   -- Amendments to IFRS 2 'Share based payments' on clarifying how to account 
      for certain types of share based payment transactions 
 
   -- IFRS 15 Revenue from contracts with customers 
 
   -- IFRS 9 Financial instruments 
 
   -- IFRS 16 Leases 
 
   -- 
 
 
   Financial Instruments 
 
   The carrying value of cash, trade and other receivables, trade and other 
payables and borrowings also represent their estimated fair values. 
There are no material differences between carrying value and fair value 
at 30 June 2016. 
 
   Additional disclosure of the basis of measurement and policies in 
respect of financial instruments are described on pages 83 to 87 of our 
2015 Annual Report and remain unchanged at 30 June 2016. 
 
   Estimates 
 
   The preparation of interim financial statements requires management to 
make judgements, estimates and assumptions that affect the application 
of accounting policies and the reported amounts of assets and 
liabilities, income and expense. Actual results may differ from these 
estimates. 
 
   In preparing these condensed interim financial statements, the 
significant judgements made by management in applying the group's 
accounting policies and the key sources of estimation uncertainty were 
the same as those that applied to the consolidated financial statements 
for the year ended 31 December 2015, with the exception of changes in 
estimates that are required in determining the provision for income 
taxes. 
 
   Impairment 
 
   No Impairment charges have been recognised in the period to 30 June 
2016. 
 
   3 PRINCIPAL RISKS AND UNCERTAINTIES 
 
   The principal risks and uncertainties impacting the Group are described 
on pages 33 to 36 of our 2015 Annual Report and remain unchanged at 30 
June 2016. 
 
   They include: competition, technological change, financial liquidity, 
natural disasters, retention of key employees, business interruption - 
supply chain, customer concentration and legislative compliance. 
 
 
 
   4. SEGMENTAL INFORMATION 
 
 
 
 
                   6 Months to 30 June 2016  6 Months to 30 June 2015  12 Months to 31 Dec 2015 
                           Unaudited                 Unaudited                  Audited 
                           GBP'000                   GBP'000                   GBP'000 
Revenue 
Wireless                             43,228                    40,454                    79,482 
Photonics                            10,705                     7,359                    15,985 
Infra Red                             4,689                     4,584                     8,878 
CMOS++                                  871                       822                     1,655 
Total Segment 
 Revenue                             59,493                    53,219                   106,000 
License income 
 from sales to 
 joint ventures                       3,517                         -                     8,024 
Total Revenue                        63,010                    53,219                   114,024 
 
Adjusted 
operating 
profit 
Wireless                              5,085                     5,045                     7,147 
Photonics                             2,734                     1,631                     4,320 
Infra Red                               830                       655                     1,181 
CMOS++                              (1,384)                     (650)                   (1,695) 
Segment adjusted 
 operating 
 profit                               7,265                     6,681                    10,953 
 
Profit from 
 license income 
 from sales to 
 joint ventures*                      3,517                         -                     8,024 
Adjusted 
 operating 
 profit                              10,782                     6,681                    18,977 
 
Exceptional gain 
 on disposal of 
 fixed assets                             -                         -                     5,187 
Non-cash 
 accounting 
 charges                            (1,752)                   (1,937)                   (3,596) 
Net reduction in 
 contingent 
 deferred 
 consideration                        2,163                         -                       779 
Restructuring and 
 reorganisation                           -                         -                     (568) 
Underlying 
 finance costs                        (721)                     (810)                   (1,403) 
Profit before tax                    10,472                     3,934                    19,376 
 
 
   * The profit arising for the 12 months to 31 December 2015 from license 
income sales to joint ventures represents revenue of GBP15,310,000 
offset by an elimination of unrealised profit of GBP7,286,000 relating 
to our retained interest in the Compound Semiconductor Centre Limited 
joint venture. No elimination of unrealised profit occurred in the 6 
months to 30 June 2016. 
 
   5 ADJUSTED PROFIT MEASURES 
 
   The group's results are reported after a number of imputed non-cash 
charges and non-recurring items.  Therefore, we have provided additional 
information to aid an understanding of the group's performance. 
 
 
 
 
                          6 months to 30  6 months to 30 
Adjustments to profit        Jun 2016        Jun 2015         12 months to 
 (All figures GBP'000s)     Unaudited       Unaudited      31 Dec 2015 Audited 
Exceptional gain on 
 disposal of fixed 
 assets                                -               -                 5,187 
Non-cash accounting 
 charges                         (1,752)         (1,937)               (3,596) 
Gain on release of 
 contingent deferred 
 consideration                     2,163               -                   779 
Restructuring and 
 reorganisation                        -               -                 (568) 
Total before tax                     411         (1,937)                 1,802 
Deferred tax on 
 adjustments                       (629)             212                   281 
Total after tax                    (218)         (1,725)                 2,083 
 
 
   The Group incurred a number of non-cash accounting charges relating to 
acquisition accounting GBP0.8m (H1 2015: GBP0.9m, FY15: GBP1.6m) and 
share based payments GBP1.0m (H1 2015: GBP1.0m, FY15: GBP2.0m). 
 
   These are classified GBP0.7m (H1 2015: GBP0.7m, FY15: GBP1.8m) within 
gross margin, GBP1.0m (H1 2015: GBP1.0m, FY15: GBP2.0m) in selling, 
general administrative expenses and GBP0.1m (H1 2015: GBP0.3m, FY15: 
GBP0.4m) in net finance costs. 
 
   The Group generated a non-cash profit of GBP2.2m (H1 2015: GBPnil, FY 
16: GBP0.8m) arising from a reduction in the estimated remaining 
deferred consideration (settled via trade discount) in respect of a 
previous acquisition. This has been classified within other income and 
expenses in the consolidated income statement. 
 
   The deferred tax debit of GBP0.6m (H1 2015: GBP0.2m credit, FY15: 
GBP0.3m credit) reflects the deferred tax impact associated with the 
adjustments to profit. 
 
   In addition the year-end adjustments to profit included the following 
items: 
 
   In July 2015 the group established a joint venture with Cardiff 
University to develop and commercialise compound semiconductor 
technologies in Europe.  To establish the joint venture, IQE contributed 
equipment with a market value of GBP12m, which was matched by a GBP12m 
cash contribution from Cardiff University.  This created a non-cash 
exceptional gain of GBP4.8m in IQE's accounts reflecting the Group's 
share of the difference between the book value and market value of the 
equipment contributed.   In addition, other unrelated disposals of fixed 
assets realised a net gain of GBP0.4m. 
 
   The restructuring and reorganisation costs of GBP0.6m (H1 2015: GBPnil) 
reflects some one-off redundancy and asset write downs associated with 
the restructuring of the groups manufacturing operations. 
 
   The cash flow impact of adjustments in the first half of 2016 relates to 
the onerous lease rental payments which are offset by the unwind of the 
onerous lease provision. 
 
   Certain items noted above are accounting estimates based on judgements, 
accordingly, the actual amounts may differ from these estimates. 
 
 
 
 
 
 
                            6 months to  6 months to 
                            30 Jun 2016  30 Jun 2015      12 months to 
 (All figures GBP'000s)      Unaudited    Unaudited    31 Dec 2015 Audited 
 
Adjusted gross margin            17,925       12,904                32,439 
Reported gross margin            17,244       12,239                30,652 
 
Adjusted sales, general 
 and administrative 

 expenses                       (7,280)      (6,223)              (13,462) 
Reported sales, general 
 and administrative 
 expenses                       (8,270)      (7,160)              (15,452) 
 
Adjusted operating profit        10,782        6,681                18,977 
Reported operating profit        11,274        5,079                21,166 
 
Adjusted profit before tax       10,061        5,871                17,574 
Reported profit before tax       10,472        3,934                19,376 
Adjusted profit after tax        10,246        6,266                18,066 
Reported profit after tax        10,028        4,541                20,149 
 
 
 
 
 
Earnings before interest, tax, depreciation and amortisation 
 (EBITDA) have been calculated as follows: 
 
                              6 months to  6 months to 
                              30 Jun 2016  30 Jun 2015 
 (All figures GBP'000s)        Unaudited    Unaudited   12 months to 31 Dec 2015 Audited 
Profit attributable to 
 equity shareholders                9,936        4,388                            19,864 
Minority interest                      92          153                               285 
Tax                                   444        (607)                             (773) 
Finance costs                         802        1,145                             1,790 
Depreciation of 
 tangible fixed 
 assets                             3,120        3,260                             6,192 
Amortisation of 
 intangible fixed 
 assets                             2,444        2,031                             5,040 
Share based payments*               1,021          998                             2,001 
Profit and Loss on 
 disposal*                          (137)            -                           (5,187) 
Impairment of 
 assets*                                -            -                               453 
Release of contingent 
 deferred consideration*          (2,163)            -                             (779) 
Restructuring and 
 re-organisation*                       -            -                               115 
EBITDA                             15,559       11,368                            29,001 
 
 
   *Exceptional items impacting EBITDA include the following items: share 
based payments, profit and loss on disposal, impairment of assets, 
provision for onerous lease, wireless business unit re-organisation 
costs and the release of contingent deferred consideration. 
 
 
 
 
6 EARNINGS PER SHARE                6 months to  6 months to  12 months to 
                                    30 Jun 2016  30 Jun 2015  31 Dec 2015 
                                     Unaudited    Unaudited     Audited 
 
Results in GBP'000s: 
Profit attributable to ordinary 
 shareholders                             9,936        4,388        19,864 
Adjustments to profit after tax 
 (note 5)                                   218        1,725       (2,083) 
Adjusted profit attributable to 
 ordinary shareholders                   10,154        6,113        17,781 
 
Number of shares: 
Weighted average number of 
 ordinary shares                    666,683,779  657,385,746   662,633,162 
Dilutive share options               27,885,351   20,835,987    21,247,935 
Adjusted weighted average number 
 of ordinary shares                 694,569,130  678,221,733   683,881,097 
 
Adjusted basic earnings per share         1.52p        0.93p         2.68p 
Basic earnings per share                  1.49p        0.67p         3.00p 
 
Adjusted diluted earnings per             1.46p        0.90p         2.60p 
 share 
Diluted earnings per share                1.43p        0.65p         2.90p 
 
 
   Basic earnings per share is calculated by dividing the profit 
attributable to ordinary shareholders by the weighted average number of 
ordinary shares during the period. 
 
   Diluted earnings per share is calculated by dividing the profit 
attributable to ordinary shareholders by the weighted average number of 
shares and 'in the money' share options in issue. Share options are 
classified as 'in the money' if their exercise price is lower than the 
average share price for the period. As required by IAS 33, this 
calculation assumes that the proceeds receivable from the exercise of 
'in the money' options would be used to purchase shares in the open 
market in order to reduce the number of new shares that would need to be 
issued. 
 
 
 
 
 
 
                                                             6 months to  6 months to  12 months to 
7 CASH GENERATED FROM OPERATIONS                             30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)                                        Unaudited    Unaudited     Audited 
 
Profit before tax                                                 10,472        3,934        19,376 
Finance costs                                                        802        1,145         1,790 
Depreciation of property, plant and equipment                      3,120        3,260         6,192 
Amortisation of intangible assets                                  2,444        2,031         5,040 
Profit and loss on disposal                                        (137)            -       (5,187) 
Non cash element of joint venture transactions                         -            -         (714) 
Impairment of assets                                                   -            -           453 
Release of contingent deferred consideration                     (2,163)            -         (779) 
Contingent deferred consideration (settled through 
 contractual discounts)                                          (2,528)      (2,744)       (4,837) 
Share based payments                                               1,021          998         2,001 
Cash inflow from operations before changes in working 
capital                                                           13,031        8,624        23,335 
(Increase) in inventories                                        (1,546)        (656)       (2,813) 
Decrease in trade and other receivables                              774          946         2,739 
Increase/(decrease) in trade and other payables                      146      (4,365)       (2,290) 
Cash inflow from operations                                       12,405        4,549        20,971 
 
 
 
 
                                        As At        As At        As At 
8 ANALYSIS OF NET DEBT               30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)                Unaudited    Unaudited     Audited 
 
Bank borrowings due after one year      (34,553)     (32,875)     (24,626) 
Bank borrowings due within one year      (3,344)      (3,081)      (3,162) 
Finance leases due after one year              -            -            - 
Finance leases due within one year             -        (515)         (79) 
Total borrowings                        (37,897)     (36,471)     (27,867) 
Cash and cash equivalents                  4,311        5,356        4,644 
Net debt                                (33,586)     (31,115)     (23,223) 
 
 
 
 
 
                                        As at        As at        As at 
9 PROVISIONS FOR OTHER LIABILITIES 
AND CHARGES                          30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)                Unaudited    Unaudited     Audited 
 
As at 1 January                            4,038        5,485        5,485 
Charged to the income statement               53            -          116 
Utilised during the period                 (605)        (715)      (1,489) 
Foreign exchange                             643           31         (74) 
As at 30 June / 31 December                4,129        4,801        4,038 
 
 
 
   As part of the re-organisation and rationalisation of the Group's 
facilities the Group ceased its manufacturing activities in Singapore 
and established the Compound Semiconductor Development Centre. The 
provision above represents the onerous lease obligation in respect of 
the Singapore property. This is expected to be utilised over the next 
four years. The provision has been discounted using a risk free rate of 
2.5%. 
 
 
 
 
                                        As At        As at        As at 
10 SHARE CAPITAL                     30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
Number of shares                      Unaudited    Unaudited     Audited 
 
As at 1 January                      665,533,170  660,327,767  660,327,767 
Employee share schemes                 1,667,010    1,799,123    5,205,403 
Shares issue to settle Translucent 
 consideration                         5,141,467            -            - 
As at 30 June / 31 December          672,341,647  662,126,890  665,533,170 
 
 
 
   In the period to the 30 June 2016 1,667,010 (H1 2015: 1,799,123) 
ordinary shares were issued to satisfy employee share schemes. 
 
 
 
 
                                        As At        As at        As at 
                                     30 Jun 2016  30 Jun 2015  31 Dec 2015 
 
(All figures GBP'000s)                Unaudited    Unaudited     Audited 
 
As at 1 January                            6,655        6,603        6,603 
Employee share schemes                        17           18           52 
Shares issue to settle Translucent 
 consideration                                51            -            - 
As at 30 June / 31 December                6,723        6,621        6,655 
 
 
 
   11 RELATED PARTY TRANSACTIONS 
 
   The Group recognised revenue of GBP0.8m and made purchases of GBP4.2m 
from its joint venture in Singapore the Compound Semiconductor 
Development Centre Private Limited. The Group also recognised revenue of 
GBP2.8m, made purchases of GBP2.0m and recharged costs of GBP0.2m with 
its joint venture in the UK the Compound Semiconductor Centre Limited. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 

responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: IQE plc via Globenewswire 
 
 
  http://www.iqep.com 
 

(END) Dow Jones Newswires

September 13, 2016 02:01 ET (06:01 GMT)

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