EXHIBIT 99.1
Published on July 11, 2007
CEUT
Emerging Growth Conference
New
York City, July 11, 2007
Reuben
F. Richards, Jr. Chief Executive Officer
Hong
Hou, President & Chief Operating Officer
July
9,
2007
EMCORE
Corporation
1
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 Company’s unaudited results for the third
quarter and fiscal year 2007, (b) statements related to the Company’s voluntary
review of its historic stock option granting practices, including statements
concerning the determination of accounting adjustments and related tax
and
financial consequences in connection with the Special Committee’s
recommendations, and (c) the timing of filing of reports with the Securities
and
Exchange Commission. of predicting quarterly and year end financial
results, (b) the finalization and audit of the Company’s unaudited results of
fiscal year 2006 and the first 2 quarters of fiscal year 2007, (c) 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), (vi) the timing and
outcome of
the Nasdaq appeal hearing, (vii) the impact of any actions that may be
required
or taken as a result of such review or the Nasdaq hearing and review
process,
(viii) risk of litigation arising out of or related to the Company’s stock
option grants or a restatement of the Company’s financial statements, and (d)
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 EMCORE does not
assume any
obligation to update the reasons why actual results could differ materially
from
those projected in the forward-looking statements.
“Safe
Harbor” Statement
July
9, 2007
2
July
9, 2007
3
EFO
Ortel
Ortel
EFO
Microwave/RF
Transmitters/Receivers
FTTP
PON TxRx
Parallel
Optics,
4
& 12x TxRx
LX4,
CX4 TxRx
For
10G Ethernet
CATV
Transmitters/
Receivers
Hybrid
Fiber Coaxial (HFC) Network
Telecom
Network
Ortel
OC-192
TxRx
SFF
Tunable
DWDM XFP
DWDM XFP
EFO
EMCORE’s
Components &
Subsystems
in Networks & Premises
July
9, 2007
4
July
9, 2007
5
Source:
Comcast
Comcast
CapEx Budget
--
24% Increase in 07 from 06
July
9, 2007
6
Broadband
(CATV, FTTP, Video
Transport)
Business Strategy
§
Acquired
five companies to position ourselves as a major player
in Broadband
Components and Systems
§
Consolidated
technology, IP, product portfolio & CATV customer
base
§
Positioned
as “Arms Merchant” to MSO and Telecom build-out
§
Multi-service
operators (MSO’s) are accelerating CATV infrastructure upgrade in order to offer
premium triple-play services
•
High-definition
TV (HDTV), digital video and Video on Demand (VOD)
•
High-speed
internet
•
Voice
over IP (VoIP)
§
Emerging
supplier of FTTP components
•
Expanded
design wins within B-PON and G-PON customer base
•
Established
China-based manufacturing facility to reduce cost and increase capacity
•
Vertically
integrated: chip-to-subsystem
§
Penetrated
into the high growth video transport and IPTV
markets
§
Strong
demand within CATV market
§
MSOs
build networks to offer commercial services
§
Comcast
and Time Warner upgrading the legacy Adelphia
networks
§
Strong
overseas market demand in Eastern Europe, Russia, India, China is driving
the
growth of CATV equipment manufacturers
July
9, 2007
7
July
9, 2007
8
July
9, 2007
9
Source:
Cisco Systems
10GbE
Share estimated
to
increase from 5% in
2006 to 45% in 2011
2006 to 45% in 2011
Demand
for 10G Ethernet Increases
July
9, 2007
10
Growth
Drivers for EMCORE
Datacom/Telecom
Business
Product
Lines
§
Leading
Supplier of 10Gb/s Ethernet Components and Transceivers
§
10Gb/s
VCSEL/PIN TOSA/ROSA components for SR
applications
§
Supplying
Xenpak LX4/CX4 and X2 CX4, sampling SFP+ SRL, LRM, & LR
transceivers
§
Demand
from the major customer is coming back after recent “Lean
Manufacturing”
§
Broadest
Portfolio of Parallel Optics Transceivers
§
4x
single data rate (SDR) and double data rate (DDR) optical media
conventors
§
12x
SDR (2.5Gb/sx12) to a broad customer base for
switching/routing
§
12x
DDR (5.0Gb/sx12) for switching /supercomputer /backplane
interconnects
§
Opportunities
in Telecom and Infiniband Areas
§
Telecom: 300-pin
SFF fully C-band tunable transponders, XFP DWDM 80km
TxRxs
§
Infiniband: QSFP,
SDR and DDR OMC transceivers, active cables
Platforms
§
State-of-the-art
VCSEL/PD Component Fab and PON Packaged Components
§
VCSEL/PD
die 1-10Gb/s, single to 2D arrays, and recently developed hermetic
chips
§
Packaged
components for DFB TO’s for GPON and GEPON, APD-TIA
TO’s
§
LX4
Platform and Infrastructure for 40 Gb/s Product
Solution
§
Push
to become a standard and building prototype samples
July
9, 2007
11
Silicon
Response Range Limit
Multi-junction
Solar Cells
§
Emcore’s
Technology Employs Three Compound Semiconductor Junctions in
Series
§
Each
Junction Has a Different Bandgap
•
Top
– 1.9 eV
•
Middle
– 1.4 eV
•
Bottom
– 0.7 eV
§
Three
Junctions of Different Bandgaps Makes Better Use of Energy
Available in the Solar Spectrum
§
Bandgap
Engineering Available in III-V Multi-junction Solar Cells Offer
a Path to Still Higher Performance
July
9, 2007
12
EMCORE
Space Photovoltaics Business
§
EPV
division formed in 1998 in Albuquerque, NM
§
Facility
ready in October 1998, and
1st volume solar cell
shipment in December 1999
§
Currently
shipping 28.5% efficient solar cells in volume; 31% efficient IMM solar
cells
demonstrated
§
Outstanding
on-orbit performance and reliability history
§
Emcore’s
entry into the space market effectively eliminated the use of Silicon
solar cells in high power GEO satellites
§
Mid
1990’s, 80% of satellite power was generated by
Silicon
§
Today
over 80% of new satellites are powered by multi-junction solar
cells
EMCORE
Space Photovoltaics Products
Solar
Cells
Solar
Panels
EMCORE
Photovoltaics Division
July
9, 2007
13
Growth
Drivers of Space Solar
Major
Customers
§
Space
Systems/Loral, Lockheed Martin, Northrop-Grumman Space, Boeing, EADS
Astrium,
General Dynamics
Market
Drivers
§
Commercial
Satellites: Growing demand for commercial programs; 33 commercial GEO
awards in
2006 (highest since 2001)
§
Industry
is at the leading edge of a replacement cycle as many of the
satellites launched in the early 1990’s reach the end of their useful
life
§
As
one of two viable suppliers, EMCORE offers the best performance in the
industry
with outstanding space heritage and a strong reliability
record
§
Government/Defense
Programs: EMCORE is a leading engineering and manufacturing service company
for
government/defense programs
§
Technology
leader: Record high-efficiency solar cells for space applications (31%
with IMM
design)
§
Solution
oriented: EMCORE provides enabling solutions to mission critical
programs
Backlog
§
Backlog
exceeding $108M
§
Book-to-bill
consistently greater than 1
July
9, 2007
14
Source:
Merrill Lynch
Solar
Module Market
§
2006
market for solar modules was approximately 2.2GW and >$8B
worldwide
§
Growth
forecasted at ~24% CAGR. The market size will be 7GW and $18B
by 2010
§
Growth
drivers:
§
Increased
demand and cost of power
§
Government
incentives
§
Reduced
cost of solar power
§
Environmental
concerns and political pressure
§
Germany
and Japan accounted for 80% of total demand in 2005
§
US
and Spain are likely to be the fastest growing markets over the next
several
years
July
9, 2007
15
u
Solar
Module Technologies
§
Crystalline
Si: Conversion efficiency of 12-20% at module level
§
Predominant
technology
Most
versatile for all applications
§
Si
shortage (at least until late of 2008)
Relatively
high price: ~$3.5/W
Easy
to scale up in production
§
Low
efficiency of surface area/land use
Environmental
concerns with some materials (Cadmium Telluride)
§
Concentrator
Photovoltaics (CPV): efficiency of 25-30% at module
level
§
Most
efficient land use – more power generated per area
Less
equipment and material requirement for production scale up
Suitable
for commercial, agricultural, and power utility applications
More
efficient for direct illumination than difused light
§
u
Pros:
u
u
Cons:
u
Pros:
u
u
u
Cons:
u
u
More
cost effective ~$2.5/W
Pros:
u
u
Thin
Film: Conversion efficiency of 5-7% at module level
§
§
Most
Effective~ $2/W
Cons:
u
u
More
efficient for direct illumination than diffused light
July
9, 2007
16
Solar
Flux
Lens
Solar
Cell
Receiver
1x
1,000x
Utilizes
advanced solar cells to provide most cost effective solution
7x
5” Silicon cells
Produce
Equal Power As
1x
1 cm2 triple
junction
CPV
Terrestrial
Application of Triple
Junction
Technology
§
EMCORE’s
triple junction solar cell technology is being adapted for
terrestrial power generation
§
Lens
concentrates solar flux to 500–1,000 times normal
irradiance
§
Conversion
efficiency improves under concentrated illumination
§
36%
cell efficiency in production
§
40%
cell will be introduced in 2007
July
9, 2007
17
July
9, 2007
18
July
9, 2007
19
Growth
Drivers of EMCORE
Terrestrial
PV Business
§
EMCORE
is the technology leader in multi-junction concentrator solar
cells
§
36%
efficient CPV cells in production
§
Aggressive
roadmap to 45% efficiency by 2010
§
EMCORE
is supporting numerous system developers with a broad range of custom
CPV
components
§
Backlog
of over 20MW
§
Agreement
for $100M supply over 7 years
§
EMCORE
is pursuing an early market entry into CPV systems
§
Gen
1 system operating “on sun” for 5 months
§
Gen
2 to enter production in Fall of 2007
§
Demand
is lined up with a supply agreement and strategic
partners
§
Current
annual capacity greater than 50MW
§
Well
positioned to be a major player, with significant advantage in system
performance and cost basis
§
Costs
will be continuously reduced through system optimization and solar cell
efficiency improvement
July
9, 2007
20
Business
Summary and Priorities
§
Business
Summary
§
Strong
broadband business (CATV & FTTP) at Ortel is near
profitability
§
Space
solar business at EPV is strong with good visibility and continued
growth
•
Business
is forecasted for continued profitability
§
Digital
fiber business (10Gb and others) is recovering from the downturn caused
by
second source and inventory management
§
Solar
power business units – ESP – will release new products to production by October
2007. Demand for products are lined up.
§
Priorities
§
Conclude
the stock option restatement and file 10-K and
10-Qs
§
Close
New Jersey site (due to HQ relocation) and recognize subsequent cost
savings
§
Introduce
terrestrial concentrator PV system to production providing the most
cost-effective solution
§
Increase
gross margins through more focused supply chain management and establishment
of
China Operations
§
Increase
production capacity at Ortel and EPV to meet future growth
demands
§
Expand
the digital fiber (EFO) business with a broader product portfolio within
Enterprise applications and enter Infiniband and Telecom
markets
July
9, 2007
21
FY08
Revenue Drivers (continued operations only)
Emerging
business from terrestrial solar (ESP) systems in
2008
Strong
space solar business: ~25% YoY growth
Strong
CATV and video business: ~30% YoY growth
Recovery
of 10G business and revenues
from
new markets (telecom & Infiniband)
Revenue
History and Projection
from
Current Businesses
$115
+40%
($
in millions)
$33
$51
$82
+61%
$144
+25%
$170
+18%
FY02
FY04
FY03
FY05
FY06
FY07
Projection
$210-230
+25-
35%
FY08
Forecast
July
9, 2007
22
EMCORE
Corporation
CEUT
Emerging Growth Conference
New
York City, July 11, 2007
Reuben
F. Richards, Jr. Chief Executive Officer
Hong
Hou, President & Chief Operating Officer
July
9,
2007
23