News: Optoelectronics
12 August 2021
Emcore transferring production equipment and overseas manufacturing from Hytera to Fastrain
Emcore Corp of Alhambra, CA, USA – which provides mixed-signal products for the aerospace & defense and broadband communications markets – says that the equipment sale and manufacturing agreements entered into with Hytera of Shenzhen, China in October 2019 has reached mutually agreed termination by both parties and that Emcore has entered into further agreements with electronic product manufacturing solutions provider Shenzhen Fastrain Technology Co Ltd and Hong Kong Fastrain Co Ltd, with the term of the new manufacturing agreement with Fastrain extended to end-December 2025.
In 2019, Emcore announced the sale of its cable TV (CATV) production equipment and transfer of its CATV manufacturing operations from its Beijing facility to Hytera Communications (Hong Kong) Co Ltd and Shenzhen Hytera Communications Co Ltd. The sale price for the equipment was about $5.5m, and Hytera used the equipment to manufacture CATV components and subsystems from its facility in Southeast Asia.
Emcore says that, with the execution of these new agreements and transfer of production ownership from Hytera to Fastrain, it will achieve a key milestone in furthering a transition of its CATV business to a variable-cost, electronics manufacturing services (EMS) model. The agreement with Fastrain includes the sale of further Emcore production equipment for about $1.4m and, in addition, it is expected to create positive value to both companies while addressing present external global risks and opportunities. The operational changes in CATV should fulfill the objective of enabling the product lines to move forward, servicing the market needs with a full portfolio of transmitter and laser offerings.
“Our 2019 agreement with Hytera has played an integral role in the transition to a fully EMS-based model for our cable TV products. We are very appreciative that Hytera has been with us during this transformation,” comments Iain Black, senior VP of operations at Emcore. The firm expects continuing improvements in operational efficiencies and capabilities over the coming quarters, he adds.
Emcore expecting quarterly revenue of $38.4m, above $34-36m guidance
Emcore sells CATV production assets to Shenzhen-based Hytera for $5.5m
