IQE is the leading global outsource supplier of customized epitaxial wafers to the semiconductor industry.

Their technology is of most advanced like AFM means Atomic Force Microscopy and moves a minuscule cantilever over an objects surface, a sharp tip passes over dips or rises punched in the surface and reads out digital information. This technology is not going to slow down it is going to speed up and has to replace most existing forms of memory storage by virtue of capacity and size.

The future of nano-technology, these tiny/minute robots would need very small processors and most sure strained silicon could provide these.

The low share price is due to uncertainty as to when the cash will run out, but I don't think this will happen as cash is of 12 to 15M and NAV of 30p, and losses are going to drop on the next 3 month and we could have profits on the Q4 2004.

Latest news from the Chairman were" The Group remains confident that it is in a strong position within the outsourcing market, although the protection of its cash position is paramount.
With a broad product portfolio allowing the customer base to use IQE as a 'one stop shop', a large available production capacity and a strong balance sheet, the Board believes the Group will benefit strongly as the overall semiconductor industry recovers and will continue to strengthen its position as the leading outsource supplier of advanced wafer products to the sector. "

Nearly all the recent results have been encouraging. Q4 accounts are being completed (30th Dec 2002). IQE know where they stand, if things had got worse their would have been a trading statement by now, and with Amberwave (IQE's partner) increasing its Asian presence, this is a bullish trend and a good point to pick up the shares @ 4.25p

Intraday

5 month MA and Indicators

Now over 30 p on good volume.

closed up 7.89%

Nice end to 2012 and a good start for the new year. Surge may well be due to employees of Daily Mail on a short term profit basis. I am a long time holder and feel confident about the future.

IQE plc : Acquisition of Kopin Wireless for $75...
HUG
THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF IRELAND OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

Acquisition of Kopin Wireless for $75 million, placing to raise £16.5 million and trading update

Cardiff, UK. 10 January 2013. IQE plc (AIM:IQE, "IQE", the "Company" or the "Group"), has agreed to acquire the compound semiconductor ("CS") epiwafer manufacturing business ("Kopin Wireless") of Kopin Corporation ("Kopin") for total consideration of $75 million in cash (the "Acquisition").

Kopin Wireless is the leading global manufacturer of heterojunction bipolar transistor ("HBT") materials which are used in power amplifiers ("PA"), a key wireless component in mobile devices. These are produced using Metal Organic Chemical Vapour Deposition ("MOCVD") epitaxial wafer technology.

Acquisition highlights:

$60 million payable in cash ("Initial Consideration") to Kopin on completion of the Acquisition ("Completion") and $15 million payable in cash to Kopin on the third anniversary of Completion ("Deferred Consideration")
Significantly extends IQE's market share and leadership in wireless industry supply and delivers a market leading position in MOCVD HBT
Builds substantially on IQE's risk mitigation strategy in wireless - adding Skyworks Solutions, Inc. ("Skyworks"), which has a long standing supply agreement with Kopin Wireless, as a major customer
Taiwan manufacturing facility adds to IQE's global manufacturing footprint and will provide the Group with a strong position to access the growing Asian semiconductor market
Attractive terms - earnings enhancing from 2013 financial year onwards
Significant cost synergies of at least £7 million per annum expected from 2014
Acquisition financing:

New banking facility with HSBC for $40 million
$20 million will be funded from the £16.5 million proceeds of the Placing (defined below)
Organic cash flow to pay the Deferred Consideration of $15 million payable in January 2016
Placing

IQE intends to raise approximately £16.5 million through a placing by the Joint Bookrunners, Espirito Santo Investment Bank and Canaccord Genuity Limited, of 56,900,961 new ordinary shares ("Placing Shares") at a price of 29 pence per Placing Share (the "Placing Price") (the "Placing")
The Placing Shares represent approximately 8.82 per cent. of the Group's enlarged share capital following Admission (defined below)
The Placing Price represents a discount of approximately 0.85 per cent. to the closing mid-market price of IQE's ordinary shares of 29.25 pence on 9 January 2013, being the last practicable date before this announcement
The books for the Placing will open with immediate effect and are expected to close no later than 4.30 p.m. today
Trading update for 2012

For the year ended 31 December 2012, IQE expects revenue to be in the range of £87 million to £88 million, with earnings before interest, tax, depreciation and amortisation in the range of £16 million to £17 million and net debt as at 31 December 2012 of approximately £15.5 million.

Drew Nelson, CEO of IQE, said:

"This acquisition is our third key transaction in the past 12 months. It significantly enhances our scale and provides us with a highly complementary product line in the wireless space.

"The transaction marks another major step forward in our risk mitigation strategy, whilst significantly boosting our wireless market share. At the same time, it delivers excellent opportunities for additional business growth, particularly in Taiwan and from there into the Asian semiconductor market.

"This transaction will be a key driver of significant earnings and cash generation and also brings substantial financial and scale benefits. This will enable the Group to make significant cost savings from FY14 onwards and further underpins our leading position in the supply of wafers to the global compound semiconductor industry."

There will be an analyst conference call at 2.30 p.m.; please contact Lucy Moseley

Looks good

IQE in US$75mln acquisition of US wireless business
2:40 pm by John Harrington The Taiwan manufacturing facility adds to IQE's global manufacturing footprint and will provide the group with a strong position to access the growing Asian semiconductor market

Semiconductor wafer products provider IQE (LON:IQE) has unveiled the blockbuster acquisition it hinted at earlier this week.

The company is paying US$75mln in cash for Kopin Wireless, the compound semiconductor epiwafer manufacturing business of US technology firm Kopin.

IQE will pay Kopin US$60mln upfront, with a further US$15m due on the third anniversary of the deal’s completion.

Kopin Wireless is a big wheel in the business of power amplifiers, a key wireless component in mobile devices. The amplifiers are produced using metal organic chemical vapour deposition epitaxial wafer technology.

The acquisition will extend IQE’s market share in wireless industry supply and brings with it a Taiwan manufacturing facility.

IQE said the deal will enhance earnings from the 2013 financial year onwards, and should generate at least £7mln of synergies per year from 2014.

As trailed in its stock exchange announcement earlier this week, IQE is to tap the market to fund part of the cost of the acquisition.

IQE plans to raise around £16.5mln through a placing of shares at 29p a pop, a mere 0.25p below the mid-market closing price on the day before the acquisition was announced.

The newly issued shares represent around 8.82% of the issued share capital of the Welsh technology firm, as enlarged by the share issue.

IQE has also secured a new US40mln banking facility with HSBC, which, together with the funds from the placing, covers the upfront part of the Kopin Wireless purchase.

The $15mln payment due in January 2016 will be funded from organic cash flow.

“This acquisition is our third key transaction in the past 12 months. It significantly enhances our scale and provides us with a highly complementary product line in the wireless space,” said Dr Drew Nelson, chief executive officer of IQE.

“The transaction marks another major step forward in our risk mitigation strategy, whilst significantly boosting our wireless market share. At the same time, it delivers excellent opportunities for additional business growth, particularly in Taiwan and from there into the Asian semiconductor market,” Dr Nelson added.

The company revealed in today’s statement it expects 2012 revenue to come in at around the £87 - £88mln mark, which is a tad below the median forecast of £88.74mln among the investment analysts following the company.

Underlying earnings (EBITDA) are tipped to be in the range of £16mln to £17mln with net debt at the year-end of around £15.5mln.

The market liked the deal, and the shares shot up to 34.33p before ebbing to 32.9p, up 3.65p on the day.

IQE plc

Completion of Placing to raise £16.5 million

Cardiff, UK, 10 January 2013: IQE plc (AIM:IQE, "IQE", the "Company" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, has successfully placed 56,900,961 new ordinary shares of 1p each ("Placing Shares") at a price of 29 pence per Placing Share raising gross proceeds of £16.5 million.

Further details of the Placing and the Group's acquisition of Kopin Wireless are set out in the announcement released earlier today.

Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that admission will take place at 8.00 a.m. on 15 January 2013 ("Admission").

The total number of ordinary shares of 1p each ("Ordinary Shares") in issue following the issue of the Placing Shares is 645,116,712, each of which carry voting rights of one vote per Ordinary Share. The Company does not hold any Ordinary Shares in treasury and so the total number of voting rights in the Company is currently 645,116,712.

Following Admission, the above figure of 645,116,712 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify an interest in, or change to an interest in, the share capital of the Company under the Financial Services Authority's Disclosure and Transparency Rules.

Drew Nelson, Chief Executive of IQE said:

"We are delighted that both existing and new institutional shareholders have strongly supported the fundraising and the acquisition of Kopin Wireless.

"This transaction will be a key driver of significant earnings and cash generation. It also brings substantial financial and scale benefits and underpins our leading position in the supply of wafers to the global wireless industry."

IQE shares soar on Kopin Corporation acquisition
Thu 10 Jan 2013

IQE - IQE

Latest Prices
Name Price %
IQE 34.75p +18.80%

FTSE AIM 100 3,303 +0.77%
FTSE AIM All-Share 735 +0.66%
Technology Hardware & Equipment 1,039 +3.44%

LONDON (SHARECAST) - UK semiconductor materials maker IQE gained on news it had agreed to buy a unit of Kopin Corporation to enhance its product line in wireless.

Shares soared 19.66% to 35.00p after the company said it would acquire compound semiconductor epiwafer manufacturing business Kopin Wireless for $75m.

Kopin Wireless manufactures heterojunction bipolar transistor materials which are used in power amplifiers, a key wireless component in mobile devices.

IQE expects earnings to increased on the back of the acquisition this year. In a trading update the company projected 2012 revenues of up to £88m with earnings before interest, tax, depreciation and amortisation up to £17m and net debt of approximately £15.5m.

Drew Nelson, Chief Executive Officer of IQE, said: "This acquisition is our third key transaction in the past 12 months. It significantly enhances our scale and provides us with a highly complementary product line in the wireless space.

"The transaction marks another major step forward in our risk mitigation strategy, whilst significantly boosting our wireless market share. At the same time, it delivers excellent opportunities for additional business growth, particularly in Taiwan and from there into the Asian semiconductor market.”

IQE to showcase at the London Innovators and Investors Forum

It is our pleasure to invite you to attend the forthcoming Innovators & Investors Forum on the 29th January 2013 at the Business Design Centre, London. This will be an exclusive invitation only event organised by Shares Magazine and Cenkos Securities.

As an active private investor, we are sure you would appreciate this unique opportunity to receive privileged access to 30 diverse, forward thinking and energetic technology companies at a single event.

Many of the exhibiting companies are currently involved in some very exciting projects in an effort to drive future growth, and development within their industries.

The event will be supported with an extensive conference program, including keynote speakers and company presentations.

We sincerely hope you are able to attend and that you find the experience both profitable and enlightening. Companies represented include:

1Spatial
Avanti Communications
Bango
Bond International Software Group
Brady
CML Microsystems
Corac
Cyan Holdings
eg Solutions
Energetix Group
eServGlobal
Forbidden Technologies
Fusion IP
Globo
incadea
InternetQ
IQE
KBC Advanced Technologies
Netcall
Optimal Payments
Plastics Capital
Probability
Quindell Portfolio
StatPro Group
WANdisco


Event time: 12.30pm to 5.30pm

Complimentary refreshments and luncheon provided

To register for this event please click here


CONFERENCE AGENDA AS AT 09.01.13
(To be updated once presentation speakers are confirmed)

12:30 Registration & Lunch

14:00 Keynote speaker - Richard Penny, Senior Fund Manager - Legal and General

14:15 Shares Magazine presentation - Russ Mould, Editorial Director

14:30 Company presentation - David Richards, President & CEO - WANdisco

14:45 Company presentation - Henrik Bang, CEO - Netcall

15:00 Company presentation - Marcus Hanke, CEO - 1Spatial

15:15 Company presentation - tbc

15:30 Coffee Break

16:00 Company presentation - Stephen Blundell, CFO - eServGlobal

16:15 Company presentation - David Baynes, CEO - Fusion IP

16:30 Company presentation - Stephen Streater, CEO - Forbidden Technologies

16:45 Company presentation - Charles Cohen, CEO - Probability

17:00 Company presentation - Simon Smith, Non-Executive Director - Cyan Holdings

17:15 Close

This agenda is subject to change and alterations

For further information, please visit our events page

Shares in IQE

(IQE: 33p), a global supplier of advanced wafer products to the semiconductor industry, soared 14 per cent after the company announced the acquisition of the compound semiconductor epiwafer manufacturing business of Nasdaq-quoted Kopin Corporation (NAS: KOPN). This is a strategically smart deal as it significantly extends IQE's market share and leadership in wireless industry supply; adds Skyworks Solutions, which has a long standing supply agreement with Kopin Wireless, to the customer base; and brings in a Taiwanese manufacturing facility to boost IQE's global manufacturing footprint and provide the business with a strong position to access the growing Asian semiconductor market.

To finance the $75m (£47m) consideration IQE has placed around 8.8 per cent of its enlarged share capital with institutions at 29p a share to raise £16.5m, and has agreed a new $40m (£25m) banking facility with HSBC to fund the balance of the purchase price. Importantly, given the structure of the deal and the fact that $15m of the consideration is deferred for three years, existing shareholders are not being diluted. In fact, the acquisition is expected to boost EPS from the 2013 financial year onwards and generate annual cost savings of at least £7m from 2014.

To put this into perspective, for the year ending 31 December 2012, IQE’s chief executive Drew Nelson expects “revenue to be in the range of £87m to £88m and cash profits of between £16m to £17m.” Kopin Wireless generated cash profits of $7.5m (£4.7m) in the first nine months of 2012, so the £7m of costs savings are material for a business making combined annual cash profits in the order of £23m. Bear in mind, too, that analysts had been predicting strong EPS growth for IQE over the next couple of years even before earnings upgrades which are likely to follow in the next few days to factor in the Kopin acquisition.

Previously, analysts expected EPS to increase from 1.6p in 2012 to between 2.2p and 2.7p in 2013, rising again to 3.2p next year, but these estimates will now have to be materially upgraded. It’s worth pointing out, too, that IQE’s finances are very comfortable as December 2012 year-end net debt of £15m only represented proforma gearing of around 18 per cent of shareholders funds of over £85m. Post the acquisition I estimate that net debt of £40m would account for around 36 per cent of IQE’s shareholder funds of £110m.

This heady growth rate and the positive drivers in the epiwafer market were the main reason I suggested buying the shares at 31.5p ('Tech that and rally', 19 Oct 2012) and reiterated that advice at 28.5p (Happy Capital returns 17 December 2012). At the current price, IQE is only rated on a 2013 forward PE ratio of 12.2 before imminent earnings upgrades. For a business that has potential to double EPS over the next two financial years, this is a very attractive rating and I continue to rate the shares a very strong trading buy. My original target price of 38p to 40p is likely to prove conservative.

IQE plc : Completion of Acquisition of Kopin Wi...
HUG


Cardiff, UK, 16 January 2013: IQE plc (AIM:IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, announced on 10 January 2013 the acquisition of the compound semiconductor epiwafer manufacturing business ("Kopin Wireless") of Kopin Corporation, Inc. (the "Acquisition"). The Company is delighted to confirm that it has now completed the Acquisition.

IQE: Investec shifts target price from 23p to 25p and still recommends to sell.


Sold my holding

Given as a buy in todays' Shares. - Target 59 p.

A good deal of buying interest this morning and now through key resistance level at 35.

18 month high

One good RNS and its next stop 60p following Shares article

OFT investigation of Kopin purchase!

How long does this take, and what is the likely scenario ?

the more you think about it the less credibility this oft news has to it, there is no way iqe board went ahead with this buy of kopin without doing some serious checks including what if anything the oft may think, i expect iqe will put out some sort of retort shortly in diplomatic language to the effect that they have no case to answer

Has there been news that I have missed - massive drop ! However, its time to hold tight which is confirmed by the number of buys going on - they cant all be wrong surely.