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7 November 2006


Emcore lowers revenue forecast from $40m to $35m

Component and subsystem maker Emcore Corp of Somerset, NJ, USA has lowered its revenue forecast for continuing operations for its fiscal fourth-quarter 2006 (to end-September) from $40m to $35m. Continuing operations include the Fiber Optic and Photovoltaic divisions, and exclude the Electronic Materials and Device epiwafer-making division (sold in August to IQE plc).

The shortfall is mainly associated with the Photovoltaics division, which did not receive export licenses covering three international satellite programs in time to ship product during the quarter. Emcore has since received license approvals on all three programs and will be shipping
against those orders during the December quarter. A fourth export license is expected later that quarter. As a result, the Photovoltaics division should report record revenue gains in fiscal Q1/2007, says president and CEO Reuben
F. Richards Jr.

Emcore is currently required to obtain approvals from the US Department of State in order to export certain satellite photovoltaic products. However, the company says it has shipped these specific products in the past and has
requested a Commodity Jurisdiction classification that would simplify the export of these products.

For the September quarter, Emcore expects revenues from its video transport line for CATV and FTTX products to be flat, but revenues from its Fiber Optic division to be $28m (up 7.7% on the June quarter), due to an increase in demand for its 10Gb/s product line. Fiber Optics division revenues for the December quarter (are expected to rise 3% on the September quarter.