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For fiscal 2007 (to end September), Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the broadband, fiber-optic and solar power markets, has reported higher-than-expected revenue of $170.1m, up 18% on $143.5m for fiscal 2006 (for continuing operations). Fiber Optics revenue rose 5% to $110.4m, due mainly to a significant increase in sales of CATV products, FTTP components and revenues associated with the acquisition of Opticomm Corp. Photovoltaics revenue rose 54%, from $38.7m to $59.7m.

For its fiscal fourth quarter, revenue was $47.0m, up 6% on $44.5m last quarter and up 33% on $35.4m a year ago. Fiber Optics revenue was $31.3m, up 11% on $28.0m a year ago and up 13% on $27.6m last quarter, despite lower revenue from legacy datacom products serving the digital fiber-optics sector. Photovoltaics revenue was $15.8m, down 7% on $16.9m last quarter due to the timing of certain order shipments, but more than doubling (up a higher-than-expected 116%) on $7.3m a year ago due mainly to increased demand for solar cells and panels for commercial satellites, government engineering programs, and emerging business of concentrator solar cells for terrestrial power applications.

Operating expenses for fiscal 2007 were $86.8m, including $23.7m for the fourth quarter (up from $20.5m a year ago). This rise was largely due to investment in the new terrestrial Solar Power Systems division, professional fees from the review of historical stock option granting practices, $0.6m from the new manufacturing facility in Langfang, China and $0.4m from the acquisition of Opticomm.

“Fiscal 2007 was a year of transition at Emcore,” says CEO Reuben F. Richards Jr. “We consolidated operations, transferred product manufacturing to our new facility in China, extended our industry-leading satellite photovoltaics product line to serve the terrestrial solar power market and experienced continued growth in our broadband CATV product line.”

During the fiscal year, order backlog more than tripled, from $48m to $149m (just $22m for Fiber Optics, but $127m for Solar Power including $57m for satellites and $70m for terrestrial). Emcore says that the increase is due to the receipt of long-term photovoltaics-related sales contracts, of which $45m is scheduled for shipment after calendar 2008. This has contributed Emcore raising fiscal 2008 revenue guidance to above its initial guidance of $210-230m.

“We are well positioned in each of our core product markets and foresee continued improvement in our competitive position across all segments,” says Richards. “Our primary objective for the coming year is to achieve positive earnings per share in 2008.”

*Emcore to supply 20MW of CPV systems to Korea

Emcore has received an order from South Korea for 5.7MW of concentrating photovoltaic (CPV) systems, along with a letter of intent for follow-on projects of 14.3MW (expected to be released within the next 6 months).

Emcore has also signed an agreement to form a joint venture with Seoul-based semiconductor packaging firm DI Semicon to manufacture CPV systems in Korea for Emcore, including systems for the 14.3MW of follow-up projects and involving a minimum purchase commitment from DI Semicon of 15MW of CPV systems annually (for deployment in South Korea).

“This purchase order and the opportunity to establish a joint venture in South Korea is an important step in the development of Emcore’s Solar Power business,” says Earl Fuller, VP and general manager of Emcore’s Solar Power division. “The Korean market has excellent renewable energy support with one of the highest feed-in tariffs in the world at this time. We are very pleased to work with DI Semicon in this opportunity to establish CPV as a utility-scale terrestrial power technology in Korea,” he adds. “This order also marks an important milestone of the acceptance of CPV technology and product solutions as the lowest cost-per-watt of any utility-scale solar power system.”

See related items:

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Emcore revenues rise, but terrestrial solar development costs increase losses

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