News

10 January 2007

 

Emcore's increased digital fiber-optics product sales offset delayed PV revenues

Emcore Corp of Somerset, NJ, USA, which makes components and subsystems for the broadband, fiber-optic, satellite, and solar power markets, has reported preliminary unaudited revenues from continuing operations of $143.5m for fiscal 2006 (to end-September), up 24% on fiscal 2005.

This includes $35.4m for fiscal fourth-quarter 2006 (up 6% year-on-year, but down 16% on the previous quarter). Fiber-optic revenues were $28m, up 16% on a year ago and 8% on the previous quarter, due mainly to the digital
fiber-optics product line. Photovoltaic revenues were $7.3m, down 22% on a year ago and 30% on the previous quarter due to a delay in the receipt of export licenses covering three satellite programs (now shipped).

For Q4/2006, net loss rose from $5.1m a year ago to $8.9m. However, after accounting for various charges as well as gains of $87.4m and $7.6m, respectively, on the sale of its 49% stake in GELcore LLC (to joint venture
partner General Electric for $100m) and the sale of its Electronics Materials and Device division (to IQE plc in August for $16m), net profit was $78.1m. Cash reserves are $124m, up $100m on the prior quarter. Fiscal
2006 yielded a net loss of $23.5m (compared to $24.3m in fiscal 2005), or a net income of $58.7m including the above gains.

"While we have experienced some challenges in the previous two quarters, we have been actively engaged in strengthening the company's balance sheet and
improving the company's operations," says CEO Reuben F. Richards Jr. "The sale of our interest in GELcore and the sale of the Electronics Materials and Device division have provided us with the capital to invest in our terrestrial photovoltaic strategy and expand our fiber-optics business. Our [$18m] strategic investment in WorldWater and Power and expansion into China are just two examples of these initiatives," adds Richards. "In addition, we have obtained significant new satellite and terrestrial orders in our
photovoltaic division that we believe will help improve operational performance in fiscal 2007." Emcore forecasts that fiscal Q1/2007 revenue will rise to $38m.

"I believe that the management changes that we have instituted will strengthen operational performance," adds Richards. In December, Dr Hong Q. Hou, VP and general manager of the Ortel fiber-optics division, was named
president and chief operating officer, as well as a director of the company.

* Due to to its voluntary review of its stock option granting practices and the need to correct its financial statements for previous periods to account for additional stock-based compensation expense, Emcore's failed to file its Annual Report on Form 10-K for fiscal 2006 with the Securities and Exchange Commission by the required deadline. Therefore, on 18 December it received a NASDAQ Staff Determination letter stating that it is not in compliance with the filing requirements for continued listing and that its common stock is subject to delisting from The Nasdaq Stock Market.

On 26 December, Emcore requested a hearing before the NASDAQ Listing Qualifications Panel to review the Staff Determination letter and request continued listing. NASDAQ has notified Emcore that the requested hearing is set for 15 February.

Emcore is continuing to prepare corrected financial statements and will file its Annual Report on Form 10-K "as soon as reasonably practicable".

See related items:

Emcore and Finisar receive Nasdaq delisting notices 

Emcore makes Ortel manager president and COO; CTO steps down from board

Emcore buys $18m stake in terrestrial solar-power firm WorldWater & Power and signs $100m supply contract

GE buys Emcore's stake in GELcore for $100m; partners with Nichia

IQE acquiring Emcore's epi division for RF

Visit: http://www.emcore.com