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11 October 2007


Emcore grows 12% quarter-to-quarter, but loss more than doubles

For its fiscal Q3/2007 (to end June), Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the broadband, fiber-optic and solar power markets, has reported revenue of $44.5m, up 12% on last quarter’s $39.8m and 23% on $36.3m a year ago.

Fiber Optics revenue was $27.6m, up 5% on last quarter’s $26.2m and 6% on $26.0m a year ago. Despite reduced revenue from the digital fiber-optics sector, Emcore continues to see a significant rise in demand for CATV products, which the firm expects to continue in fiscal 2008.

Photovoltaics revenue was $16.9m, up 24% on last quarter’s $13.6m and 63% on $10.4m a year ago.

However, operating loss was $13.4m. Operating expenses have risen by $10.3m from last quarter to $23.2m. This is mostly due to:

  • $2.2m in development costs incurred in the new terrestrial Solar Power division (as Emcore’s second-generation concentrator photovoltaic system is expected to move from the development stage to production in the December quarter);
  • $3.9m in professional fees from the firm’s review of its past stock option grants; and
  • $2.9m in severance- and patent-related expenses (mostly from the closure of the firm’s New Jersey facility and relocation of its headquarters to Albuquerque and patent-infringement litigation against optical subsystem maker Optium Corp of Horsham, PA, USA).

Operating expenses also included $0.2m from Emcore’s new optoelectronic device packaging plant in Langfang City, China (which started shipments in May) and $0.4m from April’s $4m acquisition of fiber-optic communications systems maker Opticomm Corp of San Diego, CA, USA.

Consequently, net loss has risen from $6.2m a year ago to $14.5m.

For the firm’s fiscal Q4/2007 (to end September), revenue was $47m (up 6% on Q3 and up 32% year-on-year), yielding full-year fiscal 2007 revenue of $170.0m (up 18% on fiscal 2006’s $143.5m).

“As expected, we experienced a much stronger second half for the company, based on increased strength in our CATV and photovoltaics product lines,” says CEO Reuben F. Richards Jr.“In our fourth quarter, revenues from our datacom and telecom sectors started to recover and we continue to see sustained growth in our photovoltaics business in both the satellite and terrestrial solar power markets.”

“With this increase in revenue levels, we expect corresponding improvement in profitability to reach positive EPS in mid-2008,” Richards adds. Emcore’s revenue guidance is $49m for fiscal Q1/2008 (to end-December 2007) and $210-230m for full-year fiscal 2008 (up 24-35% on fiscal 2007).

See related items:

Emcore aims for annual savings of $7m through consolidation

Emcore revenues rise, but terrestrial solar development costs increase losses

Emcore begins shipping products from its China plant

Emcore acquires Opticomm for $4m

Emcore expands patent lawsuit against Optium

Search: Emcore Photovoltaic