EMCORE PRESS RELEASE
Published on May 9, 2008
|
Press
Release
|
EMCORE Corporation Announces
Preliminary Unaudited Results for its Second Quarter Ended March 31,
2008
|
·
|
2nd
quarter revenue increased 42% year-over-year and 20% over prior quarter to
approximately $56.3 million
|
|
·
|
3rd
quarter revenue guidance is estimated to increase over 75% year-over-year
to $77-80 million
|
|
·
|
Fiscal
2008 revenue guidance is increased to $280-$295
million
|
|
·
|
EMCORE
completes acquisition of Intel’s telecom, enterprise, storage and
fiber-optic connects cable
businesses
|
|
·
|
EMCORE
expects net profitability by the September
quarter
|
ALBUQUERQUE,
New Mexico, May 7, 2008 – EMCORE Corporation (Nasdaq: EMKR – News), a leading
provider of compound semiconductor–based components and subsystems for the
broadband, fiber optic, satellite, and terrestrial solar power markets, today
announced preliminary unaudited financial results for its second quarter ended
March 31, 2008.
Consolidated
revenue for the quarter ended March 31, 2008 totaled approximately $56.3
million. This represents a revenue increase of over 42% when compared to $39.6
million of revenue reported in the same period last year. This also
represents a revenue increase of 20% when compared to the prior quarter.
Consolidated revenue for the six months ended March 31, 2008 totaled
approximately $103.2 million. This represents a revenue increase of 32% when
compared to $78.2 million of revenue reported in the same period last
year. Both of the Company’s operating segments posted increases in
quarterly revenue when compared year-over-year and
quarter-over-quarter.
For the
three months ended March 31, 2008, revenue from the Company’s Fiber Optics
segment increased $11.4 million or 44% to $37.6 million from $26.2 million, as
reported in the same period last year. For the six months ended March
31, 2008, Fiber Optics revenue increased $20.0 million or 39% to $71.6 million
from $51.6 million, as reported in the same period last year. Sequentially,
Fiber Optics revenue increased over 10% from $34 million. The increase in
revenue was due to our acquisition of the telecom-related assets of Intel’s
Optical Platform Division and a significant increase in quarterly revenue from
the Company’s datacom product lines.
Photovoltaics
revenue for the three months ended March 31, 2008 increased $5.2 million or 39%
to $18.6 million from $13.4 million as reported in the same period last
year. For the six months ended March 31, 2008, Photovoltaics revenue
increased $5.0 million or 19% to $31.6 million from $26.6 million, as reported
in the same period last year. Sequentially, Photovoltaics revenue increased over
44% from $12.9 million. The significant increase in revenue was due to new
product and business introduction of concentrator photovoltaics (CPV) for solar
power applications. Total revenue from CPV components and systems was
$4.4 million for the three months ended March 31, 2008, which represents over a
ten-fold increase in revenues when compared
quarter-over-quarter. CPV-related revenue is expected to increase
dramatically in the June quarter as production ramps on multiple manufacturing
lines. During the quarter, the Company also experienced increased
demand for its satellite solar cells and related products.
Excluding
stock-based compensation expense, Fiber Optics gross margins were 24.3% and
24.2% for the three and six months ended March 31, 2008,
respectively. This represents an increase in gross margin from 17% as
reported for the three months ended March 31, 2007 and an increase in gross
margin from 19% as reported for the six months ended March 31,
2007. Fiber Optics gross margin also increased from the prior
quarter, which was 24% as reported, The increase in Fiber Optics gross margins
is primarily due to increased revenue, facility consolidation, and other
restructuring efforts completed by the Company in the prior
year.
During
the March quarter, the Company took one-time charges of approximately $6.3
million in its Photovoltaics segment for inventory write-downs and start-up
costs in our solar cell receiver line and CPV system business. Our
Albuquerque fab capacity increased by approximately 35% during the quarter.
Excluding stock-based compensation expense and these non recurring charges,
Photovoltaics gross margin were 22%, an increase from 17% in the previous
quarter. On a GAAP basis, Photovoltaics gross margins were negative 12% and 0%
for the three and six months ended March 31, 2008, respectively, adversely
impacted by the non-recurring charges.
Adjusted
gross profit and gross margin of the consolidated business was $12.9 million or
23% for the three months ending March 31, 2008. On a GAAP basis,
consolidated gross margin for the quarter ended March 31, 2008 was approximately
12%, as adversely impacted by the $6.3 million of non-recurring
charges. This represents a decrease from 18% gross margin as reported
in the same period last year. Consolidated gross margin for the
six months ended March 31, 2008 was approximately 16%, which was slightly higher
than gross margin reported in the same period last year.
Operating
expenses for the three and six month periods ended March 31, 2008 totaled $19.6
million and $38.9 million, respectively. This represents a decrease
in operating expense when compared year-over-year and
quarter-over-quarter.
Excluding
stock–based compensation expense and other non-recurring charges, operating
expenses for the three and six months ended March 31, 2008 totaled $19.1 million
and $35.4 million, respectively. This represents a an increase in operating
expenses of $2.9 million when compared to the prior quarter A
significant portion of this increase in operating expenses was due to
acquisition-related and new product and business introduction
costs. During the quarter ended March 31, 2008, the Company incurred
over $1.6 million in operating expenses associated with the acquisition of
Intel’s telecom division and transitional services being provided by
Intel. Operating expenses also increased approximately $1.3 million
in the quarter due to costs incurred developing new product and business
opportunities for the Company’s new terrestrial solar power product
lines.
Operating
loss for the three and six month periods ended March 31, 2008 totaled $12.9
million and $22.1 million, respectively. This represents a decrease
in operating loss when compared year-over-year and
quarter-over-quarter.
Excluding
stock–based compensation expense and other non-recurring charges, our adjusted
operating loss for the three and six months ended March 31, 2008 totaled $6.0
million and $11.9 million, respectively.
In
January 2008, the Company entered into agreements with holders of approximately
97.5%, or approximately $83.3 million of its outstanding 5.50% convertible
subordinated notes due 2011 (the "Notes") pursuant to which the holders
converted their Notes into the Company's common stock. In addition,
the Company called for redemption all of its remaining outstanding Notes. Upon
conversion of the Notes, the Company issued shares of its common stock, based on
a conversion price of $7.01, in accordance with the terms of the Notes. To
incentivize certain holders to convert their Notes, the Company made cash
payments to such holders equal to 4% of the principal amount of the Notes
converted, plus accrued interest. The Company recognized a loss
totaling $4.7 million on the conversion of Notes to equity. The Notes
conversion resulted in a reduction of future interest payments of approximately
$4.7 million, on an annual basis, through May 2011.
Excluding
stock–based compensation expense and other non-recurring charges, our adjusted
net loss for the three and six months ended March 31, 2008 totaled $6.0 million
or $0.09 loss per share and $12.7 million or $0.22 loss per share,
respectively. On a GAAP basis, net loss for the three and six
month periods ended March 31, 2008 totaled $17.5 million, or $0.27 loss per
share and $31.9 million, or $0.55 loss per share, respectively.
As of
March 31, 2008, the Company had an order backlog of approximately $158 million
as compared to a backlog of approximately $156 million as of December 31, 2007.
The March 31, 2008 order backlog is comprised of $133 million for our
Photovoltaics segment and $25 million for our Fiber Optics segment.
At March
31, 2008, total cash, cash equivalents, marketable securities, and long-term
cash investments at March 31, 2008 was approximately $30.5 million, a decrease
of $0.6 million from the prior quarter. The Company generated
positive cash flows from operations for the six month period ended March 31,
2008. During fiscal 2008, the Company purchased approximately $9.6
million in equipment to develop and manufacture CPV-related components and
systems.
Management Discussion and
Outlook:
“We are
pleased with our strategic achievements in the quarter. We successfully
negotiated and closed the transactions of the asset purchase from Intel in the
areas of Telecom, Enterprise, Storage, and Connects Cable fiber optics business.
This strengthened EMCORE’s position in Fiber Optics component and subsystem
arena significantly. With the added and existing product portfolio, EMCORE is
poised as a major player in broadband, telecom, enterprise and high-performance
computing markets with leading products and technology for sustainable and
profitable growth in the future. The business development in the terrestrial
solar power area continues to be very successful. We continue to broaden our
customer base and book new orders. This quarter represents the first significant
revenue from this new line of business which we have invested in over the last
couple of years. Our debt conversion and equity financing activities
strengthened our balance sheet and provided enough capital to execute our
current business plan,” stated Dr. Hong Q. Hou, Chief Executive Officer. “We are
happy to achieve the aggressive top-line growth and meet our revenue guidance,
and we are increasing our revenue guidance going forward for this quarter and
the rest of the year. The business fundamentals remain strong for the continued
growth. We remain optimistic that we will achieve operational
profitability in the second half of 2008. The management team is intensely
focusing on delivering that profitability,” added Dr. Hou.
“The
Board of Directors has authorized the management of the Company to prepare a
comprehensive operational and strategic plan for the separation of the Company's
Fiber Optics and Photovoltaic businesses into separate corporations.” Reuben F.
Richards, Jr., Executive Chairman stated, "We are excited to be taking the first
steps in this process, which we believe allows us to maximize the potential of
both our business segments. We will be working closely with investment,
accounting and legal advisors over the coming months to develop a structure for
this separation that will maximize operating efficiencies as well as maximizing
shareholder value.”
Company & Quarterly
Highlights:
January
23, 2008 – EMCORE announced that it will supply its solar CPV components and
systems to the Spanish market through several agreements.
|
·
|
EMCORE
was awarded a 300–kilowatt (kW) CPV system contract by Spain's Institute
of Concentrator Photovoltaics Systems (ISFOC). EMCORE expects to have its
CPV systems installed in Castilla–La Mancha, Spain by December
2008.
|
|
·
|
EMCORE
reached an agreement to construct an 850–kW solar power park in
Extremadura, Spain. EMCORE will be utilizing its CPV solar power system
and provide a turn–key solution with a scope of work including
engineering, procurement, and construction. This project is expected to be
completed before July 2008 in order to take advantage of the current high
feed–in tariff.
|
|
·
|
EMCORE
received a purchase order for one million CPV components from a prominent
CPV system integrator. This order is expected to be completed by March
2009 with CPV products being deployed in projects within the Spanish
market.
|
January
31, 2008 – EMCORE announced that it has signed a memorandum of understanding for
the supply of between 200 megawatt (MW) and 700 MW of solar power systems that
are scheduled for deployment in utility scale solar power projects under
development in the southwestern region of the United States. EMCORE will supply
and install turn–key solar power systems utilizing EMCORE's CPV systems
developed at its Albuquerque, NM facility. The project developer, SunPeak Solar,
is securing land and grid access throughout 2008 and project construction is
expected to begin in early 2009. This agreement is not expected to contribute
revenues until 2009 and is dependant on the renewal of the federal investment
tax credit (ITC) extending into 2009 and beyond.
February
15, 2008 – EMCORE entered into a securities purchase agreement for the sale of
$100 million of restricted common stock and warrants. Under this
agreement, investors purchased 8 million shares of our common stock, no par
value, and warrants to purchase an additional 1.4 million shares of our common
stock. The purchase price was $12.50 per share, priced at the 20 day
volume-weighted average price. The warrants grant the holder the
right to purchase one share of our common stock at a price of $15.06 per
share. The warrants are immediately exercisable and remain
exercisable for a period of 5 years from the closing date. In
addition, EMCORE entered into a registration rights agreement with the investors
to register for resale the shares of common stock issued in this transaction and
the shares of common stock to be issued upon exercise of the
warrants. Total agent fees incurred were 5.75% of the gross proceeds,
or $5.8 million. EMCORE used the net proceeds to acquire the telecom
assets of Intel's Optical Platform Division and for working capital
requirements.
February
22, 2008 – EMCORE announced completion of the acquisition of the telecom-related
portion of Intel's Optical Platform Division. The telecom assets EMCORE acquired
include intellectual property, assets and technology comprised of tunable
lasers, tunable transponders, 300-pin transponders, and integrated tunable laser
assemblies. The acquisition agreement was signed and announced on December 18,
2007. The purchase price was $75 million in cash and $10 million in the
Company’s common stock, priced at a volume-weighted average price of $13.84 per
share, or 722,688 shares. This acquisition enhances EMCORE's
presence in the telecommunications market segment and expands its fiber optics
product portfolio. The acquired assets will be integrated into EMCORE's Digital
Products Division (EDP).
February
26, 2008 – EMCORE announced new features to its 1550nm broadband transmitter and
optical amplifier product lines. In order to support the requirements for
extended bandwidth CATV systems and RF overlay for PON networks, these new
products offer 1GHz RF performance, dual hot swappable power supplies and SNMP
management capabilities.
February
27, 2008 – EMCORE announced the introduction of a new line of un-cooled coaxial
DFB lasers. EMCORE's 1933 DFB laser family offers a low cost solution for 1310nm
linear fiber optic links. With an innovative design, the 1933 series requires no
additional cooling since it can maintain performance even with case temperatures
ranging from -40°C to +80°C. The 1933 also features exceptionally high slope
efficiency and linearity even with optical output powers up to
12dBm.
April 2,
2008 – EMCORE announced that it had been awarded a $4.6 million follow-on
production order for solar cell receiver assemblies from Concentration Solar la
Mancha of Manzanares (Ciudad Real), Spain. The receivers will be incorporated
into CS la Mancha's 500X concentrator photovoltaic (CPV) system and will be
deployed throughout Spain and other locations in fully licensed and funded
projects. Shipments are scheduled to commence in the September quarter and
complete in early 2009. CS la Mancha, part of Renovalia Energy, a renewable
energy company in Spain, has been developing the CPV system for nearly two
years, and has recently started production and volume deployment.
April 10,
2008 – EMCORE announced that it agreed to supply CPV systems to XinAo Group in
China. XinAo Group is one of China's largest energy companies and is well known
for its clean-energy technologies. The program will start with the delivery of a
50 kilowatt (kW) concentrator photovoltaic (CPV) system to be installed in
Langfang, China. This system will be used for test and evaluation purposes. Once
the expected reliability and performance metrics have been demonstrated, XinAo
plans to install CPV systems to provide electric power for its innovative coal
gasification project, which is estimated to have a requirement of 60 megawatts
(MW) of power. XinAo believes that EMCORE's CPV technology will provide a
cost-effective solution for its energy needs. In addition, XinAo intends to
build a manufacturing plant in China, jointly owned by EMCORE, to manufacture
CPV systems designed and certified by EMCORE for the Chinese
market.
April 21,
2008 – EMCORE announced completion of the acquisition of the enterprise and
storage assets of Intel’s Optical Platform Division (OPD) and the Intel Connects
Cable (ICC) business for high-performance computing under the terms signed and
announced previously. The assets include intellectual property, inventory, fixed
assets and technology relating to XENPAK, X2, SFP, and SFP+ optical transceivers
for enterprise and storage customers, as well as the Intel Connects Cables (ICC)
active cable interconnects for high-performance computing clusters. This
acquisition will further enhance EMCORE’s presence in the local area and storage
area network market segments. These assets, along with the Telecom assets
acquired in February 2008 from Intel OPD, make EMCORE one of the major companies
in the world with the most comprehensive product portfolio,
vertically-integrated capability and infrastructure, and strong commitment to
Telecom, Datacom, and Broadband fiber optics businesses. The acquired assets
will be integrated into the EMCORE Digital Products (EDP) division.
May 5,
2008 – EMCORE announced that it has entered into a $28 million definitive supply
agreement with ES System of Gwang-Ju, South Korea, for solar cell receivers to
be fielded in fully licensed and funded solar farms in South Korea. This
agreement incorporates an advance deposit to ensure production priority, and
will enable the installation of 70 megawatts (MW) of solar farms. Production for
this order has commenced and shipments are scheduled to occur over the next 24
months with the provisions for accelerated deliveries as well as future purchase
options under the same terms.
***
EMCORE
will discuss its quarterly results on a conference call to be held on Thursday,
May 8, 2008, at 9:00 a.m. ET. To participate in the conference call, U.S.
callers should dial (toll free) 866–710–0179 and international callers should
dial 334–323–9871. The access code for the call is 39197. A replay of the call
will be available beginning May 8, 2008 at 12:00 p.m. ET until May 15, 2008 at
11:59 p.m. ET. The replay call–in number for U.S. callers is 877–656–8905, for
international callers it is 334–323–9859 and the access code is 26373007. The
call also will be web cast via the Company's web site at http://www.emcore.com.
Please go to the site beforehand to download any necessary
software.
About
EMCORE:
EMCORE
Corporation is a leading provider of compound semiconductor–based components and
subsystems for the broadband, fiber optic, satellite and solar power markets.
EMCORE's Fiber Optics segment offers optical components, subsystems and systems
that enable the transmission of video, voice and data over high–capacity fiber
optic cables for high–speed data and telecommunications, cable television (CATV)
and fiber–to–the–premises (FTTP) networks. EMCORE's Solar Power segment provides
solar products for satellite and terrestrial applications. For satellite
applications, EMCORE offers high–efficiency compound semiconductor–based gallium
arsenide (GaAs) solar cells, covered interconnect cells and fully integrated
solar panels. For terrestrial applications, EMCORE offers concentrating
photovoltaic (CPV) systems for utility scale solar applications as well as
offering its high–efficiency GaAs solar cells and CPV components for use in
solar power concentrator systems. For specific information about our company,
our products or the markets we serve, please visit our website at 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 relating to future events that involve risks and
uncertainties. Such forward–looking statements include but are not limited to
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 also 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 ability to reduce operating
expenses associated with its recent acquisitions (iii) EMCORE's continued
leadership in technology and manufacturing in its markets, and (iv) 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 future periods, including, without limitation, with respect to anticipated
revenues for the third quarter of fiscal 2008 or expected revenues from recent
and anticipated acquisitions. 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,
(including, among other things, cost structure, gross margin and other
profitability improvements), due to, among other things, shifts in product mix,
selling price pressures, costs and delays related to product transfers to lower
cost manufacturing locations and associated facility closures, integration
difficulties, and execution concerns; (b) EMCORE may encounter difficulties in
integrating its recent acquisitions and as a result may sustain increased
operating expenses, delays in commercializing new products, production
difficulties associated with transferring products to EMCORE's manufacturing
facilities and disruption of customer relationships (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.
EMCORE
CORPORATION
Condensed
Consolidated Statements of Operations
For
the three and six month periods ended March 31, 2008 and 2007
(in
thousands, except per share data)
(unaudited)
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenue
|
$ | 56,279 | $ | 39,598 | $ | 103,166 | $ | 78,194 | ||||||||
|
Cost
of revenue
|
49,631 | 32,629 | 86,415 | 65,729 | ||||||||||||
|
Gross
profit
|
6,648 | 6,969 | 16,751 | 12,465 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Selling,
general, and administrative
|
10,263 | 13,143 | 22,126 | 25,682 | ||||||||||||
|
Research
and development
|
9,330 | 7,528 | 16,750 | 14,139 | ||||||||||||
|
Total
operating expenses
|
19,593 | 20,671 | 38,876 | 39,821 | ||||||||||||
|
Operating
loss
|
(12,945 | ) | (13,702 | ) | (22,125 | ) | (27,356 | ) | ||||||||
|
Other
expense (income):
|
||||||||||||||||
|
Interest
income
|
(227 | ) | (1,169 | ) | (654 | ) | (2,820 | ) | ||||||||
|
Interest
expense
|
375 | 1,260 | 1,580 | 2,522 | ||||||||||||
|
Loss
from conversion of subordinated notes
|
4,658 | - | 4,658 | - | ||||||||||||
|
Stock-based
compensation (income) expense related to tolled
options
|
(58 | ) | - | 4,316 | ||||||||||||
|
Gain
from insurance proceeds
|
- | (357 | ) | - | (357 | ) | ||||||||||
|
Loss
on disposal of equipment
|
- | - | 86 | - | ||||||||||||
|
Foreign
exchange gain
|
(186 | ) | - | (198 | ) | - | ||||||||||
|
Total
other expense (income)
|
4,562 | (266 | ) | 9,788 | (655 | ) | ||||||||||
|
Net
loss
|
$ | (17,507 | ) | $ | (13,436 | ) | $ | (31,913 | ) | $ | (26,701 | ) | ||||
|
Per
share data:
|
||||||||||||||||
|
Basic
and diluted per share data:
|
||||||||||||||||
|
Net
loss
|
$ | (0.27 | ) | $ | (0.26 | ) | $ | (0.55 | ) | $ | (0.52 | ) | ||||
|
Weighted-average
number of basic and diluted shares
outstanding
|
64,560 | 50,947 | 57,975 | 50,911 | ||||||||||||
EMCORE
CORPORATION
Condensed
Consolidated Balance Sheets
As
of March 31, 2008 and September 30, 2007
(in
thousands)
(unaudited)
|
As
of
March
31, 2008
|
As
of
September
30, 2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 22,734 | $ | 12,151 | ||||
|
Restricted
cash
|
2,148 | 1,538 | ||||||
|
Marketable
securities
|
988 | 29,075 | ||||||
|
Accounts
receivable, net
|
52,801 | 38,151 | ||||||
|
Receivables,
related party
|
287 | 332 | ||||||
|
Income
tax receivable
|
130 | 130 | ||||||
|
Inventory,
net
|
43,521 | 29,205 | ||||||
|
Prepaid
expenses and other current assets
|
4,948 | 4,350 | ||||||
|
Total
current assets
|
127,557 | 114,932 | ||||||
|
Property,
plant and equipment, net
|
74,165 | 57,257 | ||||||
|
Goodwill
|
89,739 | 40,990 | ||||||
|
Other
intangible assets, net
|
12,753 | 5,275 | ||||||
|
Investments
in unconsolidated affiliates
|
14,917 | 14,872 | ||||||
|
Long-term
investments and restricted cash
|
4,655 | - | ||||||
|
Other
non-current assets, net
|
533 | 1,540 | ||||||
|
Total
assets
|
$ | 324,319 | $ | 234,866 | ||||
|
LIABILITIES
and SHAREHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 27,943 | $ | 22,685 | ||||
|
Accrued
expenses and other current liabilities
|
26,430 | 28,776 | ||||||
|
Income
tax payable
|
594 | 593 | ||||||
|
Total
current liabilities
|
54,967 | 52,054 | ||||||
|
Convertible
subordinated notes
|
- | 84,981 | ||||||
|
Total
liabilities
|
54,967 | 137,035 | ||||||
|
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, 73,735 shares issued
and
73,576
outstanding at March 31, 2008; 51,208 shares issued and 51,049
shares
outstanding
at September 30, 2007
|
647,346 | 443,835 | ||||||
|
Accumulated
deficit
|
(375,817 | ) | (343,904 | ) | ||||
|
Accumulated
other comprehensive loss
|
(94 | ) | (17 | ) | ||||
|
Treasury
stock, at cost; 159 shares
|
(2,083 | ) | (2,083 | ) | ||||
|
Total
shareholders’ equity
|
269,352 | 97,831 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 324,319 | $ | 234,866 | ||||
Use
of Non–GAAP Measures
EMCORE
provides non–GAAP operating expenses, non–GAAP operating loss, and non–GAAP net
loss as supplemental measures to GAAP regarding our operational performance.
These financial measures exclude the impact of certain items and, therefore,
have not been calculated in accordance with GAAP. A detailed explanation of each
of the adjustments to such financial measures is described below. This press
release also contains a reconciliation of each of these non–GAAP financial
measures to its most comparable GAAP financial measure.
EMCORE
believes that the additional non–GAAP measures are useful to investors for
financial analysis. In particular, management believes it is appropriate in
evaluating EMCORE's operations to exclude gains or losses from one–time items
such as patent litigation–related charges, charges associated with our review of
historical stock option grants and severance and restructuring–related expenses
because these items would make results less comparable between periods.
Management believes adjusting for stock–based compensation expense is
appropriate, as it is a non–cash expense, and adjusting is consistent with the
practice of most of our competitors. Management also uses these measures
internally to evaluate the company's operating performance, and the measures are
used for planning and forecasting of future periods. In addition, many financial
analysts that follow our Company focus on and publish both historical results
and future projections based on non–GAAP financial measures. We believe that it
is in the best interest of our investors to provide this information to analysts
so that they accurately report the non–GAAP financial information. However,
non–GAAP measures are not in accordance with, nor are they a substitute for,
GAAP measures.
While
management believes that these non–GAAP financial measures provide useful
supplemental information to investors, there are limitations associated with the
use of these non–GAAP financial measures. These non–GAAP financial measures are
not prepared in accordance with GAAP, may not be reported by all of the
Company's competitors and may not be directly comparable to similarly titled
measures of the Company's competitors due to potential differences in the exact
method of calculation. The Company compensates for these limitations by using
these non–GAAP financial measures as supplements to GAAP financial measures and
by reviewing the reconciliations of the non–GAAP financial measures to their
most comparable GAAP financial measures.
Non–GAAP
financial measures are not in accordance with, or an alternative for, generally
accepted accounting principles in the United States. The Company's non–GAAP
financial measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures, and should be read only in
conjunction with the Company's consolidated financial statements prepared in
accordance with GAAP.
Pursuant
to the requirements of Regulation G, the Company has provided a reconciliation
of the non–GAAP financial measures to the most directly comparable GAAP
financial measures as indicated in the tables listed below:
|
EMCORE
CORPORATION
Non
-GAAP Table – Operating Expenses
Unaudited
(in
thousands)
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
expenses – as reported
|
$ | 19,593 | $ | 20,671 | $ | 38,876 | $ | 39,821 | ||||||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related benefit (charges)
|
52 | (536 | ) | (403 | ) | (979 | ) | |||||||||
|
Stock
option restatement-related benefit (expense)
|
1,038 | (2,311 | ) | 257 | (4,122 | ) | ||||||||||
|
Non-recurring
legal expense
|
(186 | ) | (1,513 | ) | (1,151 | ) | (2,359 | ) | ||||||||
|
Stock-based
compensation expense
|
(1,362 | ) | (1,013 | ) | (2,188 | ) | (2,993 | ) | ||||||||
|
Operating
expenses – Non-GAAP
|
$ | 19,135 | $ | 15,298 | $ | 35,391 | $ | 29,368 | ||||||||
|
EMCORE
CORPORATION
Non
-GAAP Table – Operating Loss
Unaudited
(in
thousands)
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
loss – as reported
|
$ | (12,945 | ) | $ | (13,702 | ) | $ | (22,125 | ) | $ | (27,356 | ) | ||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related (benefit) charges
|
(52 | ) | 536 | 403 | 980 | |||||||||||
|
Stock
option restatement-related (benefit) expense
|
(1,038 | ) | 2,311 | (257 | ) | 4,122 | ||||||||||
|
Non-recurring
legal expense
|
186 | 1,513 | 1,151 | 2,359 | ||||||||||||
|
Photovoltaics-related
inventory and start-up charges
|
6,300 | - | 6,300 | - | ||||||||||||
|
Stock-based
compensation expense
|
1,573 | 1,344 | 2,648 | 3,670 | ||||||||||||
|
Operating
loss – Non-GAAP
|
$ | (5,976 | ) | $ | (7,998 | ) | $ | (11,880 | ) | $ | (16,225 | ) | ||||
|
Operating
loss per basic share – Non-GAAP
|
$ | (0.09 | ) | $ | (0.16 | ) | $ | (0.20 | ) | $ | (0.32 | ) | ||||
|
EMCORE
CORPORATION
Non
-GAAP Table – Net Loss
Unaudited
(in
thousands)
|
Three
Months Ended
March
31,
|
Six
Months Ended
March
31,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
loss – as reported
|
$ | (17,507 | ) | $ | (13,436 | ) | $ | (31,913 | ) | $ | (26,701 | ) | ||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related (benefit) charges
|
(52 | ) | 536 | 403 | 980 | |||||||||||
|
Stock
option restatement-related (benefit) expense
|
(1,038 | ) | 2,311 | (257 | ) | 4,122 | ||||||||||
|
Non-recurring
legal expense
|
186 | 1,513 | 1,151 | 2,359 | ||||||||||||
|
Stock-based
compensation expense
|
1,573 | 1,344 | 2,648 | 3,670 | ||||||||||||
|
Loss
from conversion of subordinated notes
|
4,658 | - | 4,658 | - | ||||||||||||
|
Photovoltaics-related
inventory and start-up charges
|
6,300 | - | 6,300 | - | ||||||||||||
|
Stock-based
compensation expense from tolled options
|
(58 | ) | - | 4,316 | - | |||||||||||
|
Net
loss – Non-GAAP
|
$ | (5,938 | ) | $ | (7,732 | ) | $ | (12,694 | ) | $ | (15,570 | ) | ||||
|
Net
loss per basic share – Non-GAAP
|
$ | (0.09 | ) | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.31 | ) | ||||
Contacts:
EMCORE
Corporation
Adam
Gushard - Interim Chief Financial Officer
(505)
332-5000
info@emcore.com
TTC
Group
Victor
Allgeier
(646)
290-6400
info@ttcominc.com