EXHIBIT 99.1
Published on April 10, 2007
EXHIBIT
99.1
Press
Release
EMCORE
ANNOUNCES EXTENSION FROM NASDAQ AND
AGREEMENT
WITH NOTEHOLDERS
SOMERSET,
New Jersey, April 9, 2007
- EMCORE
Corporation (NASDAQ-EMKR), a leading provider of compound semiconductor-based
components and subsystems for the broadband, fiber optic, satellite, and solar
power markets, announced today that the Company has received a notice from
the
Nasdaq Stock Market that the Nasdaq Listing Qualifications Panel has granted
the
Company’s request for continued listing on the Nasdaq Stock Market subject to
certain conditions. The extension is conditioned on the Company filing both
its
Form 10-K for the fiscal year ended September 30, 2006 and its Form 10-Q for
the
quarter ended December 31, 2006 with the SEC by no later than May 10, 2007.
While the Company is making every effort to satisfy the terms of the extension,
it can provide no assurances that it will ultimately be able to do so. If the
Company is unable to file both the required Forms 10-K and 10-Q with the SEC
by
May, 10, 2007, the Company intends to request an additional extension from
the
Panel prior to May 10, 2007.
EMCORE
also announced that it has reached an agreement with holders of a majority
in
principal amount of its 5% Convertible Senior Subordinated Notes due 2011,
under
which the Noteholders agreed to waive until February 29, 2008 any and all
defaults related to the Company’s failure to file its Annual Report on Form 10-K
for the fiscal year ended September 30, 2006 and its Form 10-Q for the quarter
ended December 31, 2006. The Company and the Noteholders agreed, among other
things, to amend the terms of the Notes such that the interest rate of the
Notes
increases to 5.5% from 5% and the conversion price is reduced from $8.09 to
$7.01 per share. In addition, the Noteholders granted the Company the option
to
purchase 12% of the Notes held by such Noteholders. The effect on the Company’s
stockholders will be a reduction in the indebtedness on the Company’s balance
sheet with virtually no additional dilution to shareholders as a result of
the
change in the conversion price.
More
information on these events will be included in the Company's Current Report
on
Form 8-K.
About
EMCORE:
EMCORE
Corporation offers a broad portfolio of compound semiconductor-based products
for the broad band, fiber optic, satellite and solar power markets. EMCORE's
Fiber Optic segment offers optical components, subsystems and systems for high
speed data and telecommunications networks, cable television (CATV) and
fiber-to-the-premises (FTTP). EMCORE's Photovoltaic segment provides products
for both satellite and terrestrial applications. For satellite applications,
EMCORE offers high efficiency Gallium Arsenide (GaAs) solar cells, Covered
Interconnect Cells (CICs) and panels. For terrestrial applications, EMCORE
is
adapting its high-efficiency GaAs solar cells for use in solar concentrator
systems. For further information about EMCORE, visit http://www.emcore.com.
Forward-looking
statements
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. Such forward-looking statements include,
but are not limited to, (a) the finalization and audit of the Company’s
unaudited fourth quarter and fiscal year 2006 results, (b) the effects of the
Company’s voluntary review of its historic stock option granting practices,
including (i) risks and uncertainties relating to developments in regulatory
and
legal guidance regarding stock option grants and accounting for such grants,
(ii) the possibility that the Company will not be able to file additional
reports with the Securities and Exchange Commission in a timely manner, (iii)
the possibility that the Company in consultation with the Company's independent
public accountants or the SEC, may determine that additional stock-based
compensation expenses and other additional expenses be recorded in connection
with affected option grants (iv) the Company may incur negative tax consequences
arising out of the stock option review, (v) the possible delisting of the
Company’s stock from the Nasdaq National Market pursuant to Nasdaq Marketplace
Rule 4310(c)(14) and (vi) risk of additional litigation arising out of or
related to the Company’s stock option grants or a restatement of the Company’s
financial statements, and (c) factors discussed from time to time in reports
filed by the Company with the Securities and Exchange Commission. The
forward-looking statements contained in this news release are made as of the
date hereof and the Company does not assume any obligation to update the reasons
why actual results could differ materially from those projected in the
forward-looking statements.
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EMCORE
Corporation
Adam
Gushard
Interim
Chief Financial Officer
(505)
332-5000
info@emcore.com
KEKST
AND COMPANY
Fred
Spar
(212)
521-4813
or
Joseph
Kuo
(212)
521-4863