·	3rd quarter revenue (6/30/07) increases 23% year-over-year and 12% sequentially to $44.5 million

·	4th quarter revenue (9/30/07) increases 32% year-over year to approximately $47 million

·	Fiscal 2007 annual revenue was approximately $170.0 million

·	Fiscal 2008 1st quarter revenue guidance (12/31/07) estimated at $49 million

·	Fiscal 2008 annual revenue guidance estimated at $210 - $230 million

 

 

 

 

 

As previously disclosed, EMCORE engaged in a voluntary review of our historical stock option grant procedures, which was conducted by a Special Committee comprised of independent members of our Board of Directors, with the assistance of independent outside counsel and accounting experts.  Based on the Special Committee’s review, we determined that our previously filed financial statements would need to be restated to reflect additional non-cash stock-based compensation expense and related tax expense.  The key findings and conclusions of the Special Committee are described in a Current Report on Form 8-K that was filed with the SEC on November 15, 2006.   The Special Committee’s conclusion that EMCORE should recognize additional compensation expense for certain stock option grants requires substantial work.  This work involves not just restatements of prior year audited financial statements, but it also impacts the preparation of our audited financial statements for our fiscal year ended September 30, 2006.  For this reason we were unable to file our Annual Report on Form 10-K for our fiscal year ended September 30, 2006 and our Quarterly Reports on Form 10-Q for our quarters ended December 31, 2006, March 31, 2007 and June 30, 2007 with the SEC within regulatory filing deadlines.  We have been working diligently to prepare the restated financial statements, and as we have publicly reported, we expect to be compliant with the SEC and the NASDAQ in October 2007.

 

		Three Months Ended June 30,						Nine Months Ended June 30,
			2007			2006 (as restated)			2007			2006 (as restated)
Revenue		$	44,540		$	36,323		$	123,052		$	108,167
Cost of revenue			34,774			28,778			100,647			86,407
Gross profit			9,766			7,545			22,405			21,760
Operating expenses:
Selling, general and administrative			15,488			7,886			41,548			25,592
Research and development			7,709			5,053			21,879			14,060
Total operating expenses			23,197			12,939			63,427			39,652
Operating loss			(13,431	)		(5,394	)		(41,022	)		(17,892	)
Other (income) expenses:
Interest income			(723	)		(263	)		(3,543	)		(839	)
Interest expense			1,254			1,331			3,776			3,987
Loss from convertible subordinated notes exchange offer			-			-			-			1,078
Loss from early redemption of convertible subordinated notes			561			-			561			-
Gain from insurance proceeds			-			-			(357	)		-
Equity in net loss of unconsolidated affiliates			-			129			-			311
Foreign exchange gain			(12	)		-			(12	)		-
Total other expenses			1,080			1,197			425			4,537
Loss from continuing operations			(14,511	)		(6,591	)		(41,447	)		(22,429	)
Discontinued operations:
Income from discontinued operations			-			384			-			340
Gain on disposal of discontinued operations, net of tax			-			-			-			2,012
Income from discontinued operations			-			384			-			2,352
Net loss		$	(14,511	)	$	(6,207	)	$	(41,447	)	$	(20,077	)
Per share data:
Basic and diluted per share data:
Loss from continuing operations		$	(0.28	)	$	(0.13	)	$	(0.81	)	$	(0.45	)
Income from discontinued operations			-			0.01			-			0.05
Net loss		$	(0.28	)	$	(0.12	)	$	(0.81	)	$	(0.40	)
Weighted-average number of basic and diluted shares outstanding			51,043			50,430			50,974			49,336

 

			As of June 30, 2007			As of September 30, 2006 (as restated)
ASSETS
Current assets:
Cash and cash equivalents		$	15,361		$	22,592
Restricted cash			1,158			738
Marketable securities			32,975			101,375
Accounts receivable, net of allowance of $703 at June 30, 2007 and $552 at September 30, 2006			41,484			27,387
Receivables, related parties			332			453
Notes receivable			750			3,000
Inventory, net			28,517			23,252
Prepaid expenses and other current assets			3,877			4,518
Total current assets			124,454			183,315
Property, plant and equipment, net			55,081			55,186
Goodwill			40,846			40,447
Other intangible assets, net			5,628			4,293
Investments in unconsolidated affiliates			14,873			981
Long-term receivables, related parties			-			82
Other non-current assets, net			2,737			3,243
Total assets		$	243,619		$	287,547
LIABILITIES and SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	21,047		$	20,122
Accrued expenses and other current liabilities			22,706			21,382
Convertible subordinated notes, current portion			-			11,428
Total current liabilities			43,753			52,932
Convertible subordinated notes			84,951			84,516
Deferred taxes			71			-
Total liabilities			128,775			137,448
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.0001 par, 5,882 shares authorized, no shares outstanding			-			-
Common stock, no par value, 100,000 shares authorized, 51,191 shares issued and  51,032 outstanding at June 30, 2007; 50,962 shares issued and 50,803 shares outstanding at September 30, 2006			442,530			436,338
Accumulated deficit			(325,603	)		(284,156	)
Treasury stock, at cost; 159 shares			(2,083	)		(2,083	)
Total shareholders’ equity			114,844			150,099
Total liabilities and shareholders’ equity		$	243,619		$	287,547

EMCORE CORPORATION Non -GAAP Table – Operating Expenses Unaudited (in thousands)		Three Months Ended June 30,						Nine Months Ended June 30,
			2007			2006 (as restated)			2007			2006 (as restated)
Operating expenses – as reported		$	23,197		$	12,939		$	63,427		$	39,652
Adjusted Expenses:
Solar Power division expense			(2,240	)		(187	)		(6,713	)		(312	)
Stock option restatement-related expense			(3,864	)		-			(8,151	)		-
Severance and patent litigation-related expense			(2,943	)		(13	)		(6,280	)		(22	)
Stock-based compensation expense			(841	)		(878	)		(3,816	)		(2,741	)
Operating expenses – Non-GAAP		$	13,309		$	11,861		$	38,467		$	36,577

EMCORE CORPORATION Non -GAAP Table – Operating Loss Unaudited (in thousands)		Three Months Ended June 30,						Nine Months Ended June 30,
			2007			2006 (as restated)			2007			2006 (as restated)
Operating loss – as reported		$	(13,431	)	$	(5,394	)	$	(41,022	)	$	(17,892	)
Adjusted Expenses:
Solar Power division expense			2,240			187			6,713			312
Stock option restatement-related expense			3,864			-			8,151			-
Severance and patent litigation-related expense			2,943			13			6,280			22
Stock-based compensation expense			1,135			1,215			4,781			3,526
Operating loss – Non-GAAP		$	(3,249	)	$	(3,979	)	$	(15,097	)	$	(14,032	)
Operating loss per basic and diluted share – Non-GAAP		$	(0.06	)	$	(0.08	)	$	(0.30	)	$	(0.28	)

EMCORE CORPORATION Non -GAAP Table – Net Loss Unaudited (in thousands)		Three Months Ended June 30,						Nine Months Ended June 30,
			2007			2006 (as restated)			2007			2006 (as restated)
Net loss – as reported		$	(14,511	)	$	(6,207	)	$	(41,447	)	$	(20,077	)
Adjusted Expenses:
Solar Power division expense			2,240			187			6,713			312
Stock option restatement-related expense			3,864			-			8,151			-
Severance and patent litigation-related expense			2,943			13			6,280			22
Stock-based compensation expense			1,135			1,215			4,781			3,526
Income from discontinued operations			-			(384	)		-			(2,352	)
Net loss – Non-GAAP		$	(4,329	)	$	(5,176	)	$	(15,522	)	$	(18,569	)
Net loss per basic and diluted share – Non-GAAP		$	(0.08	)	$	(0.10	)	$	(0.30	)	$	(0.38	)