25 May 2023
Emcore doubles revenue projection for last-time buys of Broadband products to $20m
Emcore Corp of Alhambra, CA, USA — the world’s largest independent provider of inertial navigation products to the aerospace & defense industry, with AS9100 aerospace-quality-certified manufacturing facilities in Budd Lake, NJ and Concord, CA — expects revenue from last-time buys of Broadband products to be about $20m, up from the $10m previously projected. The firm expects margins to be consistent with the historical margin performance for these products.
“In our fiscal second-quarter 2023 earnings release, we indicated that last-time buys for products in our broadband business would total approximately $10m. As of today, our Broadband backlog stands near $20m, with some opportunity for additional upside,” says president & CEO Jeffrey Rittichier. “Shipments of these products are being scheduled and are expected to largely be complete by the end of the calendar year 2023.”
Emcore expects indium phosphide (InP) wafer production supporting Broadband products to conclude by the end of July, and the majority of InP wafer operations to finish by the end of August. Electronics manufacturing services (EMS) assembly for Broadband products is expected to be complete by around the end of calendar year 2023.
During this period, Emcore expects to complete its planned headcount reduction of about 100 employees (primarily in Alhambra and China) as Broadband operations wind down. Emcore is consolidating facility space by downsizing the space being occupied at the Alhambra campus from five to two buildings, relocating personnel in Concord, to the operations area from the adjacent office building, and closing the manufacturing support and engineering center in China. The firm expects restructuring actions to be substantially completed by end-September.
Emcore restructuring to focus on aerospace & defense