EMCORE 8-K EX 99.1 PRESS RELEASE
Published on April 1, 2005
Press
Release
EMCORE
Corporation Announces $13.2 Million First Earn-out From Sale of Equipment
Division
· Veeco
makes cash payment to EMCORE on March 31, 2005
SOMERSET, New
Jersey, April 1, 2005 -- EMCORE Corporation (NASDAQ: EMKR), a leading provider
of compound semiconductor-based components and subsystems for the broadband,
fiber optic, satellite, and wireless communications markets, today announced
that the first earn-out from Veeco Instruments Inc. (NASDAQ: VECO) in connection
with the November 2003 sale of the capital equipment business (TurboDisc) to
Veeco is $13.2 million.
In November 2003,
EMCORE sold its TurboDisc capital equipment business to Veeco in a
transaction that is valued at up to $80.0 million. The selling price was
$60.0 million in cash at closing, with an additional aggregate maximum payout of
$20.0 million over the next two years. Under the terms of the transaction,
EMCORE will receive in cash or stock 50% of all revenues from the TurboDisc
business that exceed $40.0 million in each of the two years, beginning January
1, 2004. Veeco agreed to make their first earn-out payment in cash.
Net sales of
TurboDisc products for the twelve months ended December 31, 2004 amounted to
$66.3 million resulting in an earn-out of $13.2 million for year one of the
two-year earn-out agreement. EMCORE received a cash payment from Veeco on March
31, 2005.
About
EMCORE
EMCORE Corporation offers a broad portfolio of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and wireless communications markets. The company's integrated solutions philosophy embodies state-of-the-art technology, material science expertise, and a shared vision of our customer's goals and objectives to be leaders in the transport of voice, data, and video over copper, hybrid fiber/coax (HFC), fiber, satellite, and wireless networks. EMCORE's solutions include: optical components and subsystems for fiber-to-the-premise, cable television, and high speed data and telecommunications networks; solar cells, solar panels, and fiber optic ground station links for global satellite communications; and electronic materials for high bandwidth wireless communications systems, such as Wi-Fi Internet access and cell phones. Through its joint venture participation in GELcore, LLC, EMCORE plays a vital role in developing and commercializing next-generation High-Brightness LED technology for use in the general and specialty illumination markets. For further information about EMCORE, visit http://www.emcore.com.
The information
provided herein may include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 relating to future events that involve risks and
uncertainties. Words such as "expects," "anticipates," "intends," "plans,"
believes," and "estimates," and variations of these words and similar
expressions, identify these forward-looking statements. These forward-looking
statements include, without limitation, (a) any statements or implications
regarding EMCORE’s ability to remain competitive and a leader in its industry,
and the future growth of EMCORE, or the industry and the economy in general; (b)
statements regarding the expected level and timing of benefits to EMCORE from
its current cost reduction efforts, including (i) expected cost reductions and
their impact on EMCORE’s financial performance, (ii) EMCORE’s continued
leadership in technology and manufacturing in its markets, and (iii) the belief
that the cost reduction efforts will not impact product development or
manufacturing execution; (c) any statement or implication that the products
described in this press release (i) will be successfully introduced or marketed,
(ii) will be qualified and purchased by our customers, or (iii) will perform to
any particular specifications or performance or reliability standards; (d) any
and all guidance provided by EMCORE regarding its expected financial performance
in current or future periods, including, without limitation, with respect to
anticipated revenues for the second quarter of fiscal 2005. These
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those projected, including without
limitation, the following: (a) EMCORE’s cost reduction efforts may not be
successful in achieving their expected benefits, or may negatively impact
EMCORE’s operations; (b) reduced revenues resulting from the TurboDisc sale; (c)
the failure of the products (i) to perform as expected without material defects,
(ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be
qualified and accepted by our customers, and, iv) to successfully compete with
products offered by our competitors and (d) other risks and uncertainties
described in EMCORE's filings with the Securities and Exchange Commission such
as cancellations, rescheduling or delays in product shipments; manufacturing
capacity constraints; lengthy sales and qualification cycles; difficulties in
the production process; changes in semiconductor industry growth; increased
competition; delays in developing and commercializing new products; and other
factors. The forward-looking statements contained in this news release are made
as of the date hereof and EMCORE does not assume any obligation to update the
reasons why actual results could differ materially from those projected in the
forward-looking statements.
Contact
EMCORE
Corporation
Tom Werthan - Chief
Financial Officer
(732)
271-9090
info@emcore.com
or
TTC
Group
Victor Allgeier
(212) 227-0997
info@ttcominc.com