19 August 2010


Emcore postpones reporting June-quarter results

Earlier this week, Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the broadband, fiber-optic, and solar power markets, told the US Securities and Exchange Commission (SEC) that it is delaying its quarterly report for fiscal third-quarter 2010 (to end-June).

Executive chairman & interim chief financial officer Reuben Richards says that Emcore is reviewing accounting for certain inventory write-downs in the allowance against a specific account receivable that the firm has determined should be recorded. Emcore is considering the effect and significance of these adjustments with respect to prior reporting periods, and these issues need to be completed in order for it to file its quarterly report, says Richards.

In addition, during the quarter, Emcore identified material weaknesses in connection with the inventory write-downs and revenue cutoff transactions as of 30 June. The firm says that it intends to file its quarterly report as soon as reasonably practicable.

Nevertheless, Emcore says that for its fiscal fourth-quarter 2010 (to end-September), it expects consolidated revenue to rise further to $54–56m (versus $48.2m in fiscal Q2), with sequential increases for a second consecutive quarter in both segments: Fiber $33–34m (up from $30.2m in fiscal Q2) and Photovoltaics $21–22m (up from $18m in fiscal Q2).

* At the beginning of this month, Emcore agreed with San’an Optoelectronics Co Ltd of Xiamen, China to form the joint venture Suncore Photovoltaics Co Ltd, in order to develop, manufacture and distribute its concentration photovoltaic (CPV) receivers, modules and systems for terrestrial solar power applications.

Also, after in February agreeing to sell 60% of its Fiber Optics business to Tangshan Caofeidian Investment Corp (TCIC) to create a joint venture in China, in June the firms withdrew their joint filing with the Committee on Foreign Investment in the United States (CFIUS) because of the latter’s “regulatory concerns”. By 2 August, the proposed transaction was officially terminated. According to the share purchase agreement, Emcore is obliged to pay TCIC a fee of $2.8m in the event of a termination due to Emcore’s inability to secure certain regulatory approvals. “We are working very actively with TCIC to contemplate a restructuring of the deal which does not require the same export control licensing and CFIUS review, and as a result of that the termination fee will be waived,” says Emcore’s president & CEO Dr Hong Hou.

See related items:

Emcore losses slashed as revenue grows 14%

Emcore revenue recovers a further 5%, driven by space PVs and CATV

Emcore to sell 60% stake in Fiber Optics business for $27.8m

Emcore revenues rebound by 5%, driven by broadband fiber optics

Satellite deals boost Emcore amid $27m write-down

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