IQE and Rockwell settle patent lawsuit
The settlement agreement includes a cash payment by IQE and the issue of 300,000 shares of IQE ordinary shares of 1p to Rockwell Automation.
In return, Rockwell Automation has agreed to release and discharge IQE and all of its customers, past, present and future, from any obligations under any Rockwell MOCVD process patents in relation to wafers purchased from IQE.
Around GBP750,000 had been assigned by IQE for legal costs for this matter, which was due to have gone to court in January 2003. The IQE board considered it more appropriate to settle the case now with certainty and concentrate all corporate efforts on increasing current business opportunities.
According to IQE, current trading remains difficult. The wireless portion of IQE s business continues to grow and there is increasing interest in the company s strained silicon product for next-generation microprocessors and other electronic applications. The optoelectronic marketplace for communication devices however, remains very depressed, although IQE is making progress on its visible laser (DVD) product range and developing its LED strategy. The substrate business has remained relatively flat during the third quarter of 2002.
Due to the continued decline in the optoelectronics industry for communications and the seasonal impact of shutdowns of many companies during the third quarter, particularly in Europe, IQE sales for the third quarter are expected to be in the range of GBP5.4 - 5.6 million ($8.47-8.79 million).
