EMCORE 8-K EX-99.1 PRESS RELEASE
Published on April 18, 2005
Press
Release
EMCORE
PhotoVoltaics to Consolidate Solar Panel Operations Into State-of-the-Art
Albuquerque, NM Facility
§ Annual Savings from
Consolidation Estimated at $3 Million
SOMERSET, N.J.,
April 18, 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, announced today the
establishment of a modern solar panel manufacturing facility as part of its
Albuquerque, NM solar cell fabrication operations. This new operation will
provide solar cell assemblies and solar panels for the satellite and terrestrial
markets.
The Albuquerque
solar panel facility will utilize automation for many of the production
operations, which will enable superior product consistency, as well as reduced
manufacturing costs. EMCORE will ensure that the space qualification of this
facility is commensurate with the heritage of its existing solar panel operation
in City of Industry, CA. EMCORE currently manufactures highly efficient
radiation hard solar cells, with a beginning of life efficiency of 27.5%, and is
the only manufacturer to supply true monolithic bypass diodes for shadow
protection utilizing several EMCORE patented methods. Satellite success and
corresponding revenues depend on power efficiency and the capacity to transmit
data.
This highly
efficient manufacturing operation also will be capable of the production of
solar panels for grid-tied terrestrial concentrator applications, which will
enable EMCORE to further broaden its photovoltaics product
portfolio.
David Danzilio,
Vice President and General Manager of EMCORE's PhotoVoltaics Division stated,
“EMCORE's proven capability to meet the needs of our customers with industry
leading technology that enhances satellite performance will be improved by this
move. Our modern wafer fabrication line in Albuquerque employs state-of-the-art
manufacturing methods, which will be applied directly to the solar cell assembly
and panel manufacturing operations. Both operations now will be within the same
facility. The synergy of these operations will provide the highest quality,
highest reliability, and most cost-effective solar components to surpass current
technologies and offerings.” Danzilio added, “The experience and industry
knowledge of our talented employees located in City of Industry has helped
establish EMCORE as a world leader in satellite solar power products. This will
be preserved as much as possible, even as we move to higher levels of
manufacturing excellence.”
By consolidating
operations into a single location, EMCORE PhotoVoltaics expects to realize
annual cost savings in fiscal 2006 and beyond of approximately $3 million, which
will enable it to better compete in the terrestrial and space power markets.
Production operations at the current City of Industry solar panel operation are
expected to be discontinued during the fourth quarter of fiscal 2005, and the
facility closed during the first quarter of fiscal 2006.
“EMCORE will now
have the capability to provide satellite manufacturers a more cost-effective
combination of world-renowned solar cell technology and solar panel heritage.
EMCORE has supplied more than 400,000 solar cells, with many already on orbit
with proven space heritage. Satellite manufacturers and solar array integrators
will continue to be able to rely on a single supply source that meets all of
their satellite power needs,” added Reuben F. Richards, Jr., President and CEO
of EMCORE.
Work has started to
establish the necessary manufacturing process and space qualifications for solar
cell assemblies and solar panels that are built at the Albuquerque location.
This effort is projected to be completed by the end of the first quarter of
fiscal 2006. EMCORE already has secured a solar panel program to be built at the
Albuquerque facility, with hardware scheduled for delivery to EMCORE’s customer
in the third fiscal quarter of 2006.
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
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
TTC
Group
Victor
Allgeier
(212)
227-0997
info@ttcominc.com