Ya, marketcap-wise IQE is relatively small potatoes, which may be the precise reason why POET is engaged with them...they might want to pick them up cheap.
IQE has 756.1M shares outstanding, not an unsubstantial amount by any means, and a price/earnings ratio of almost 44, profit margin of 12%. It has 475 employees but only $140M in revenue.
Seems cheap to me.