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4 September 2007


Emcore aims for annual savings of $7m through consolidation

Compound semiconductor-based components and subsystems supplier Emcore Corporation of Albuquerque, N.M., USA is to consolidate its North American fiber optics engineering and design centers in Virginia, Illinois, and Northern California into three larger sites in Albuquerque, New Mexico; Alhambra, California and Warminster, Pennsylvania.

Emcore expects annual saving of around $7m through the consolidation. Production, product support, and key design personnel will relocate to the main operating sites. Consolidation restructuring charges are expected to total approximately $2m.

"Emcore has acquired several technology companies over the past few years. Each has contributed to the success of Emcore's broadband and fiber optics businesses through the addition of new technologies, products, and customer portfolios. Consolidation of these design centers into three core sites will provide greater synergy across product lines, better leverage of engineering resources, shorter time to market, and increased customer support," said Hong Hou, president and chief operating officer. "Emcore will reduce operating costs by eliminating duplicate resources and infrastructures."

Emcore’s design center in Virginia closed in June 2007; the remaining centers in Illinois and Northern California will close by September this year.

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