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19 December 2007


Emcore acquiring tunable telecom assets from Intel

Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the broadband, fiber-optic and solar power markets, has agreed the $85m acquisition of the telecom-related assets of Intel’s Optical Platform Division (including intellectual property, assets and technology relating to tunable lasers, tunable transponders, 300-pin transponders and integrable tunable laser assemblies). The transaction is expected to close in first-quarter 2008.

Emcore reckons that the acquisition will enhance its presence in the telecoms market segment and expand its fiber-optics product portfolio, allowing it to provide a more complete product offering. It also presents an opportunity to build upon Intel’s leading tunable laser technology, strong product quality and history of customer service and satisfaction, says CEO Reuben Richards. “The acquired assets should drive substantial product cost reduction, and the combined product portfolio should enable Emcore to gain a greater share of customer spending.” Emcore reckons that the assets will generate $65m of revenue in 2008, and accelerate its path to earnings per share profitability in mid-2008, he adds.

“The optical telecom components business continues to be an attractive market opportunity, but we believe this business and its assets are an optimal fit with Emcore,” says Doug Davis, VP of Intel’s Digital Enterprise Group and general manager of its Embedded and Communications Group. “The two companies will work together following the close of the transaction to complete a smooth transition of the business.”

The disposal of these telecom-related assets enables Intel to focus its investments on core communications and embedded market segments in line with its platform strategies, the firm says. Intel is also exploring strategic alternatives regarding the portion of its Optical Platform Division, which manufactures lasers and transceivers for enterprise data centers and storage applications.

See related item:

Emcore raises fiscal 2008 guidance due to PV revenue doubling

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