EMCORE PRESS RELEASE
Published on August 11, 2008
EXHIBIT 99.1
|
Press
Release
|
EMCORE Corporation Announces
Preliminary Unaudited Results for its Third Quarter Ended June 30,
2008
|
·
|
3rd
quarter revenue increased 70% year-over-year and 34% over prior quarter to
$75.5 million
|
|
·
|
Fiber
Optics segment business achieved positive earnings net of non-recurring
acquisition-related expenses
|
|
·
|
3rd
quarter pro forma EPS, net of non-recurring charges and stock-based
compensation expense, was ($0.04) per
share
|
ALBUQUERQUE,
New Mexico, August 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 third quarter ended
June 30, 2008.
Consolidated
revenue for the quarter ended June 30, 2008 totaled $75.5 million. This
represents an increase in revenue of approximately 70% when compared $44.4
million of revenue as reported in the same period last
year. Quarterly revenue increased 34% sequentially when to compared
to the immediate prior quarter. Consolidated revenue for the nine
months ended June 30, 2008 totaled $178.7 million, which represents an increase
of 46% when compared to $122.6 million of revenue as reported in the same period
last year. Both of the Company’s operating segments experienced
increases in quarterly revenue when compared to the prior year and the prior
quarter.
For the
three months ended June 30, 2008, revenue from the Company’s Fiber Optics
segment increased by $26.0 million, or 94%, to $53.6 million from $27.6 million,
as reported in the same period last year. For the nine months ended
June 30, 2008, Fiber Optics revenue increased by $46.0 million, or 58%, to
$125.2 million from $79.2 million, as reported in the same period last year.
Compared to the immediate prior quarter, Fiber Optics revenue increased by $16.0
million, or 43%. The increase in Fiber Optics revenue was primarily due to
increased demand for the Company’s parallel optical transceivers and our recent
acquisition of Intel’s Optical Platform Division. Demand for the
Company’s legacy datacom products continued to strengthen throughout the quarter
increasing 144% and 46% on a year-over-year and sequential quarterly basis,
respectively.
Photovoltaics
revenue for the three months ended June 30, 2008 increased $5.1 million, or 30%,
to $21.9 million from $16.8 million as reported in the same period last
year. For the nine months ended June 30, 2008, Photovoltaics revenue
increased by $10.0 million, or 23%, to $53.5 million from $43.5 million, as
reported in the same period last year. Compared to the immediate
prior quarter, Photovoltaics revenue increased by $3.3 million, or 18%. The
increase in sequential quarterly revenue was due primarily to the Company’s
introduction of new concentrator photovoltaics (CPV) products for commercial and
utility scale applications. Satellite-related revenues declined on a
sequential quarterly basis as previously forecast.
Consolidated
gross margin for the quarter ended June 30, 2008 improved to 18% compared with
12% as reported in the immediate prior quarter. Quarterly gross
margin decreased when compared to 22% reported in the same period last
year. Consolidated gross margin for the nine months ended June 30,
2008 was 17%, which represents a decrease from 18% reported in the same period
last year.
Fiber
Optics gross margins were 27% and 25% for the three and nine months ended June
30, 2008, respectively. This represents an increase in gross margin
from 22% as reported for the three months ended June 30, 2007 and an increase in
gross margin from 19% as reported for the nine months ended June 30,
2007. Fiber Optics gross margin also increased sequentially from the
24% reported in the prior quarter. The increase in Fiber Optics gross
margins was primarily due to increased revenue, benefits associated with the
ramp-up in our China manufacturing operations, implementation of certain cost
reduction initiatives, and improved efficiencies driven by facility
consolidation. On a pro forma basis, net of non-recurring Intel
transition service agreement (TSA) charges, Fiber Optics was net income
positive.
Photovoltaics
gross margins were negative 3% and negative 2% for the three and nine months
ended June 30, 2008, respectively. This represents a decrease in
gross margin from 22% as reported for the three months ended June 30, 2007 and a
decrease in gross margin from 17% as reported for the nine months ended June 30,
2007. However, Photovoltaics gross margin improved on a sequential
basis from negative 12% reported in the second fiscal quarter. In the
quarter ended June 30, 2008, our Photovoltaics division increased manufacturing
capacity for its CPV components; however, equipment uptime was below plan,
consequently, production volume in the quarter was not sufficient to completely
absorb the additional overhead costs associated with the new CPV receiver lines
placed into service. Also, during the quarter, the Company recorded
losses on CPV system projects of approximately $1.8 million primarily due to
higher than standard freight and installation costs.
Operating
expenses for the three and nine months ended June 30, 2008 totaled $25.3 million
and $64.2 million, respectively. This represents an increase in
operating expenses when compared to the prior year and the prior
quarter. For the three and nine months ended June 30, 2007, operating
expenses totaled $23.2 million and $63.0 million,
respectively. During the quarter ended June 30, 2008, the Company
incurred over $7.2 million in additional operating expenses associated with the
acquisition of Intel’s Optical Platform division, of which $3.2 million related
to transitional services being provided by Intel. The Company expects
Intel’s transitional services expense to decrease by approximately 50% during
the current quarter and to terminate by September 30, 2008.
Operating
loss for the three and nine month periods ended June 30, 2008 totaled $11.6
million and $33.8 million, respectively, which represents a significant decrease
in operating loss when compared to the prior year quarter and the prior year
losses of $13.5 million and $40.8 million, respectively. Excluding
Intel TSA charges, operating loss for the quarter totaled $8.4
million.
For the
three and nine month periods ended June 30, 2008, net loss totaled $7.7 million,
or $0.10 loss per share, and $39.6 million, or $0.62 loss per share,
respectively. This represents a significant decrease in net loss when
compared to the prior year and the immediate prior quarter. Excluding
Intel TSA charges and stock-based compensation expense, net loss for the quarter
totaled approximately $2.8 million, or a loss of $0.04 per share.
As of
June 30, 2008, the Company had an order backlog of approximately $109 million
which compares with the March 31, 2008 order backlog of approximately $158
million. In July 2008, the Company was informed by its customer Green
& Gold Energy, which is based in Australia, that it was engaged in
negotiations relating to the sale of its business through an asset sale and, as
a result, could not commit to making any further purchases under its
approximately $79 million of CPV-related purchase orders. The
acquirer has indicated that they intend to negotiate a new purchase agreement
with the Company upon consummation of the transaction. As a result,
the Company has cancelled production slots reserved for Green & Gold Energy
to reflect this event and has adjusted the quarter-end backlog accordingly. As
of June 30, 2008, total CPV-related backlog totaled $53 million.
At June
30, 2008, cash, cash equivalents, long-term investments and restricted cash
totaled approximately $23.5 million, a decrease of $7.0 million from the prior
quarter. The majority of the quarterly cash usage related to capital
expenditures for our Photovoltaics division, payment of Intel’s
acquisition-related transition service charges and an investment in Lightron
Fiber-Optics Devices, Inc., a contract manufacturer based in South
Korea. In June 2008, the Company announced that it had agreed to sell
2 million shares of Series D Preferred Stock of WorldWater and Solar
Technologies Corporation, together with 200,000 Warrants, to The Quercus Trust,
a major shareholder of both EMCORE and WorldWater, at a price equal to $6.54 per
share of the Series D Preferred Stock. The sale took place through two closings,
one for one million shares and 100,000 warrants, which closed on Friday, June
27, 2008, and one for an equal number of shares and warrants which closed on
July 21, 2008. Cash proceeds from the sale totaled $13.1
million. The July 2008 transaction will be reflected in the Company’s
September quarter-end results.
Management Discussion and
Outlook:
“We are
pleased to have achieved improved operating results in the Company’s Fiber
Optics divisions, achieving positive earnings, net of non-recurring
acquisition-related expenses, as originally forecasted. Our Fiber
Optics divisions have a very robust new product pipeline with a number of high
growth opportunities and we look forward to continued improvement in the
division’s operating performance over the next few quarters. In
Photovoltaics, while we experienced a decrease in demand for the June quarter,
we expect a rebound in satellite-related revenues over the next few quarters. In
our CPV-related business, although we were adversely affected by the delay in
installation of our CPV receiver manufacturing line, the Company still achieved
a significant revenue improvement in its terrestrial CPV product
lines. Demand continues to be significant as the Company continues to
sign long-term CPV-related supply agreements with a much more diverse customer
base for both land-based and commercial rooftop applications across different
geographic markets. While there is some uncertainty of incentives and subsidies
in some of our end solar power markets, we are seeing increased market
acceptance and continued growth in our terrestrial CPV business. We
are committed to achieving profitability and expect continued progress toward
that goal in the following quarter,” stated Dr. Hong Q. Hou, Chief Executive
Officer.
Company & Quarterly
Highlights:
April 2,
2008 – The Company 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 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
April 10,
2008 – The Company 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) CPV system, which was shipped in June 2008, to be
installed in Langfang, China in August 2008. 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 – The Company 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 are
being integrated into the EMCORE Digital Products (EDP) division.
May 5,
2008 – The Company 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.
July 9,
2008 – The Company
announced that it entered into two definitive supply agreements for solar cell
receivers in June 2008 with a total value of approximately $29 million. These
supply agreements incorporate advance deposits to ensure production priority for
these customers. The end applications for the product to be delivered range from
solar farm to commercial rooftop installations employing CPV technology.
Production for these orders has commenced and shipments are scheduled to occur
over the next 24 months.
July 25,
2008 – The Company
announced that its world record Inverted Metamorphic (IMM) solar cell technology
has been chosen by R&D Magazine for an R&D 100 award. This prestigious
award recognizes the IMM solar cell as one of the most innovative technologies
of 2008. Developed in conjunction with the National Renewable Energy
Laboratory (NREL) and the Vehicle Systems Directorate of the US Air Force
Research Laboratory (AFRL), this revolutionary solar cell technology provides a
platform for EMCORE’s next generation photovoltaic products for space and
terrestrial solar power applications. Solar cells built using IMM technology
recently achieved world record conversion efficiency of 33% used in space, and
it is anticipated that efficiency levels in the 42%-45% range will be achieved
when adapted for use under the 500-1500X concentrated illumination, typical in
terrestrial CPV systems. Once commercialized, the CPV systems that are powered
with EMCORE’s IMM based products will see a reduction in the cost of power
generated by approximately 10% to 20%. EMCORE expects to commercialize this
technology for both space and terrestrial applications in 2009.
August 5,
2008 – The Company
announced that it entered into two new supply agreements for solar cells and
receivers with a total value of over $40 million. The larger of the two purchase
contracts is a multi-year supply agreement for solar cells, to be delivered over
four years. The product to be delivered will be incorporated into concentrating
photovoltaics (CPV) systems developed for commercial rooftop installations as
well as utility-scale solar farms. The customers placing these orders are
targeting CPV deployments in the United States with a particular focus on the
California market. Production for these orders has commenced and approximately
$1 million of product is expected to be shipped in the present
quarter.
***
EMCORE
will discuss its quarterly results on a conference call to be held on Friday,
August 8, 2008 at 9:00 am 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 57996. A replay of the call will be
available beginning August 8, 2008 at 12:00 p.m. ET until August 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 51102591. 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 fourth 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 June 30, 2008 and 2007
(in
thousands, except per share data)
(unaudited)
|
Three
Months Ended
June
30,
|
Nine
Months Ended
June
30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenue
|
$ | 75,502 | $ | 44,428 | $ | 178,668 | $ | 122,622 | ||||||||
|
Cost
of revenue
|
61,856 | 34,723 | 148,271 | 100,452 | ||||||||||||
|
Gross
profit
|
13,646 | 9,705 | 30,397 | 22,170 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Selling,
general, and administrative
|
13,906 | 15,516 | 36,032 | 41,198 | ||||||||||||
|
Research
and development
|
11,382 | 7,668 | 28,132 | 21,807 | ||||||||||||
|
Total
operating expenses
|
25,288 | 23,184 | 64,164 | 63,005 | ||||||||||||
|
Operating
loss
|
(11,642 | ) | (13,479 | ) | (33,767 | ) | (40,835 | ) | ||||||||
|
Other
expense (income):
|
||||||||||||||||
|
Interest
income
|
(124 | ) | (723 | ) | (778 | ) | (3,543 | ) | ||||||||
|
Interest
expense
|
- | 1,254 | 1,580 | 3,776 | ||||||||||||
|
Loss
from conversion of subordinated notes
|
- | - | 4,658 | - | ||||||||||||
|
Loss
from early redemption of convertible subordinated
notes
|
- | 561 | - | 561 | ||||||||||||
|
Stock-based
compensation expense related to tolled options
|
- | - | 4,316 | |||||||||||||
|
Gain
from insurance proceeds
|
- | - | - | (357 | ) | |||||||||||
|
Gain
from sale of investment
|
(3,692 | ) | - | (3,692 | ) | - | ||||||||||
|
Loss
on disposal of equipment
|
- | - | 86 | - | ||||||||||||
|
Foreign
exchange gain
|
(104 | ) | (12 | ) | (302 | ) | (12 | ) | ||||||||
|
Total
other expense (income)
|
(3,920 | ) | 1,080 | 5,868 | 425 | |||||||||||
|
Net
loss
|
$ | (7,722 | ) | $ | (14,559 | ) | $ | (39,635 | ) | $ | (41,260 | ) | ||||
|
Per
share data:
|
||||||||||||||||
|
Basic
and diluted per share data:
|
||||||||||||||||
|
Net
loss
|
$ | (0.10 | ) | $ | (0.29 | ) | $ | (0.62 | ) | $ | (0.81 | ) | ||||
|
Weighted-average
number of basic and diluted shares
outstanding
|
76,582 | 51,043 | 64,155 | 50,974 | ||||||||||||
EMCORE
CORPORATION
Condensed
Consolidated Balance Sheets
As
of June 30, 2008 and September 30, 2007
(in
thousands)
(unaudited)
|
As
of
June
30,
2008
|
As
of
September
30,
2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 18,183 | $ | 12,151 | ||||
|
Restricted
cash
|
1,869 | 1,538 | ||||||
|
Short-term
investments
|
- | 29,075 | ||||||
|
Accounts
receivable, net
|
68,157 | 38,151 | ||||||
|
Receivable,
related party
|
287 | 332 | ||||||
|
Income
tax receivable
|
130 | - | ||||||
|
Inventory,
net
|
50,066 | 29,205 | ||||||
|
Prepaid
expenses and other current assets
|
6,032 | 4,350 | ||||||
|
Total
current assets
|
144,724 | 114,802 | ||||||
|
Property,
plant, and equipment, net
|
84,938 | 57,257 | ||||||
|
Goodwill
|
76,850 | 40,990 | ||||||
|
Other
intangible assets, net
|
28,570 | 5,275 | ||||||
|
Investments
in unconsolidated affiliates
|
13,527 | 14,872 | ||||||
|
Long-term
investments and restricted cash
|
3,472 | - | ||||||
|
Other
non-current assets, net
|
654 | 1,540 | ||||||
|
Total
assets
|
$ | 352,735 | $ | 234,736 | ||||
|
LIABILITIES
and SHAREHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 36,751 | $ | 22,685 | ||||
|
Accrued
expenses and other current liabilities
|
24,670 | 28,776 | ||||||
|
Income
tax payable
|
594 | 137 | ||||||
|
Total
current liabilities
|
62,015 | 51,598 | ||||||
|
Convertible
subordinated notes
|
- | 84,981 | ||||||
|
Total
liabilities
|
62,015 | 136,579 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Shareholders’
equity:
|
||||||||
|
Preferred
stock, $0.0001 par, 5,882 shares authorized, no shares
outstanding
|
- | - | ||||||
|
Common
stock, no par value, 200,000 shares authorized, 77,672 shares issued
and
77,513
outstanding at June 30, 2008; 51,208 shares issued and 51,049
shares
outstanding
at September 30, 2007
|
676,354 | 443,835 | ||||||
|
Accumulated
deficit
|
(383,539 | ) | (343,578 | ) | ||||
|
Accumulated
other comprehensive loss
|
(12 | ) | (17 | ) | ||||
|
Treasury
stock, at cost; 159 shares
|
(2,083 | ) | (2,083 | ) | ||||
|
Total
shareholders’ equity
|
290,720 | 98,157 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 352,735 | $ | 234,736 | ||||
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
Net
Loss from recurring operations
Unaudited
(in
thousands)
|
Three
Months Ended
June
30,
|
Nine
Months Ended
June
30,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
loss – as reported
|
$ | (7,722 | ) | $ | (14,559 | ) | $ | (39,635 | ) | $ | (41,260 | ) | ||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Intel
TSA non-recurring charges
|
3,193 | - | 4,138 | - | ||||||||||||
|
Stock-based
compensation expense
|
1,741 | 1,130 | 4,389 | 4,800 | ||||||||||||
|
Net
loss – Non-GAAP
|
$ | (2,788 | ) | $ | (13,429 | ) | $ | (31,108 | ) | $ | (36,460 | ) | ||||
|
Net
loss per basic and diluted share – Non-GAAP
|
$ | (0.04 | ) | $ | (0.26 | ) | $ | (0.48 | ) | $ | (0.72 | ) | ||||
|
EMCORE
CORPORATION
Non
-GAAP Table
Operating
Expenses from recurring operations
Unaudited
(in
thousands)
|
Three
Months Ended
June
30,
|
Nine
Months Ended
June
30,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
expenses – as reported
|
$ | 25,288 | $ | 23,184 | $ | 64,164 | $ | 63,005 | ||||||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related charges
|
(12 | ) | (1,305 | ) | (415 | ) | (2,284 | ) | ||||||||
|
Stock
option restatement-related (expense) benefit
|
(91 | ) | (3,790 | ) | 166 | (7,912 | ) | |||||||||
|
Non-recurring
legal expense
|
(57 | ) | (1,878 | ) | (1,208 | ) | (4,237 | ) | ||||||||
|
Intel
TSA non-recurring charges
|
(3,193 | ) | - | (4,138 | ) | - | ||||||||||
|
Stock-based
compensation expense
|
(1,459 | ) | (838 | ) | (3,647 | ) | (3,831 | ) | ||||||||
|
Operating
expenses – Non-GAAP
|
$ | 20,476 | $ | 15,373 | $ | 54,922 | $ | 44,741 | ||||||||
|
EMCORE
CORPORATION
Non
-GAAP Table
Operating
Loss from recurring operations
Unaudited
(in
thousands)
|
Three
Months Ended
June
30,
|
Nine
Months Ended
June
30,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Operating
loss – as reported
|
$ | (11,642 | ) | $ | (13,479 | ) | $ | (33,767 | ) | $ | (40,835 | ) | ||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related charges
|
12 | 1,305 | 415 | 2,284 | ||||||||||||
|
Stock
option restatement-related expense (benefit)
|
91 | 3,790 | (166 | ) | 7,912 | |||||||||||
|
Non-recurring
legal expense
|
57 | 1,878 | 1,208 | 4,237 | ||||||||||||
|
Intel
TSA non-recurring charges
|
3,193 | - | 4,138 | - | ||||||||||||
|
Stock-based
compensation expense
|
1,741 | 1,130 | 4,389 | 4,800 | ||||||||||||
|
Operating
loss – Non-GAAP
|
$ | (6,548 | ) | $ | (5,376 | ) | $ | (23,783 | ) | $ | (21,602 | ) | ||||
|
Operating
loss per basic and diluted share – Non-GAAP
|
$ | (0.09 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.42 | ) | ||||
|
EMCORE
CORPORATION
Non
-GAAP Table
Net
Loss from recurring operations
Unaudited
(in
thousands)
|
Three
Months Ended
June
30,
|
Nine
Months Ended
June
30,
|
||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
loss – as reported
|
$ | (7,722 | ) | $ | (14,559 | ) | $ | (39,635 | ) | $ | (41,260 | ) | ||||
|
Adjusted
Expenses:
|
||||||||||||||||
|
Severance
and restructuring-related charges
|
12 | 1,305 | 415 | 2,284 | ||||||||||||
|
Stock
option restatement-related expense (benefit)
|
91 | 3,790 | (166 | ) | 7,912 | |||||||||||
|
Non-recurring
legal expense
|
57 | 1,878 | 1,208 | 4,237 | ||||||||||||
|
Intel
TSA non-recurring charges
|
3,193 | - | 4,138 | - | ||||||||||||
|
Stock-based
compensation expense
|
1,741 | 1,130 | 4,389 | 4,800 | ||||||||||||
|
Loss
from conversion of subordinated notes
|
- | - | 4,658 | - | ||||||||||||
|
Gain
on sale of investment
|
(3,692 | ) | - | (3,692 | ) | - | ||||||||||
|
Stock-based
compensation expense from tolled options
|
- | - | 4,316 | - | ||||||||||||
|
Net
loss – Non-GAAP
|
$ | (6,320 | ) | $ | (6,456 | ) | $ | (24,369 | ) | $ | (22,027 | ) | ||||
|
Net
loss per basic and diluted share – Non-GAAP
|
$ | (0.08 | ) | $ | (0.13 | ) | $ | (0.38 | ) | $ | (0.43 | ) | ||||
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