EXHIBIT 99.1
Published on January 11, 2008
1
January
10 2008
EMCORE
Corporation
10th
Annual Needham Growth Stock Conf
January
11, 2007
New
York City
Reuben
F. Richards, Jr. Chief
Executive Officer
Chris
Larocca, VP and GM, EMCORE Broadband
Fiber Optics Division
Fiber Optics Division
2
January
10 2008
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 first quarter of fiscal year 2008, (b) statements regarding future
product introductions and performance metrics, (c) statements regarding 2008 and other
future financial performance, (d) statements regarding future development and growth in the
Company’s markets, (e) statements regarding projected benefits of the Intel acquisition, and
(f) statements related to the Company’s review of its historic stock option granting practices.
These risks and uncertainties include, but are not limited to, (a) the difficulty of predicting
quarterly financial results, (b) risks arising out of or related to the Company’s past practices
related to stock option grants and the resulting restatement of the Company’s financial
statements as reflected in its annual report on Form 10-K for its 2006 fiscal year, including the
risk of possible litigation, (c) factors discussed from time to time in reports filed by the
Company with the SEC, and (d) risks arising from the Company’s planned acquisition of a
business unit from Intel Corporation, including the Company’s ability to close the transaction,
the integration of acquired business into the Company’s operations, and acceptance of the
Company by the customers of the acquired business. 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.
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 first quarter of fiscal year 2008, (b) statements regarding future
product introductions and performance metrics, (c) statements regarding 2008 and other
future financial performance, (d) statements regarding future development and growth in the
Company’s markets, (e) statements regarding projected benefits of the Intel acquisition, and
(f) statements related to the Company’s review of its historic stock option granting practices.
These risks and uncertainties include, but are not limited to, (a) the difficulty of predicting
quarterly financial results, (b) risks arising out of or related to the Company’s past practices
related to stock option grants and the resulting restatement of the Company’s financial
statements as reflected in its annual report on Form 10-K for its 2006 fiscal year, including the
risk of possible litigation, (c) factors discussed from time to time in reports filed by the
Company with the SEC, and (d) risks arising from the Company’s planned acquisition of a
business unit from Intel Corporation, including the Company’s ability to close the transaction,
the integration of acquired business into the Company’s operations, and acceptance of the
Company by the customers of the acquired business. 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
3
January
10 2008
DataCom
Component
Telecom
Component
10
GE TRx (LX4, CX4)
Parallel
Optical TRx
Fiber
Optics
Broadband
(EBB)
CATV
Tx/Rx
FTTx
Tx, PON TRx
RF
over fiber links
Fiber-optic
gyro
Video
Transport
Photovoltaics
Solar
Power (EPV)
Space
solar cells
Space
solar panels
CPV
solar cells
Emcore
Solar
Power
(ESP)
Solar
power system
Based
on CPV cells
Fiber
Optic Components and
Systems for Broadband, 10G
Ethernet, Datacom & Telecom
Systems for Broadband, 10G
Ethernet, Datacom & Telecom
Space
and Terrestrial Solar
Power Based on Multi-
Junction Solar Cells
Power Based on Multi-
Junction Solar Cells
Global
Communications and Power at the Speed of Light
EMCORE’s
New Business Scope
4
January
10 2008
EMCORE
Space Photovoltaics Business
§ EPV
division formed in 1998 in
Albuquerque, NM
Albuquerque, NM
§ Currently
products
§ Space
solar cells
§ Space
solar panels
§ Terrestrial
CPV cells
§ Outstanding
on-orbit performance
and reliability history
and reliability history
§ Emcore’s
entry into the space market
effectively eliminated the use of Silicon
solar cells in high power GEO satellites
effectively eliminated the use of Silicon
solar cells in high power GEO satellites
§ Mid
1990s, 80% of satellites were powered
by Silicon solar cells
by Silicon solar cells
§ Today
over 80% of new satellites are
powered by multi-junction solar cells
powered by multi-junction solar cells
EMCORE
Photovoltaics Division
5
January
10 2008
Silicon
Response Range Limit
Leading
III-V Solar Cell Technology
Replacing Silicon Based Applications
Replacing Silicon Based Applications
§ Emcore’s
Technology Employs Three
Compound Semiconductor Solar Cells
in Series
Compound Semiconductor Solar Cells
in Series
§ Each
Cell Is Tuned to Absorb a
Different Color of Light
Different Color of Light
§ By
Converting More Sunlight to
Electricity Emcore’s Solar Cells Operate
at Higher Efficiency
Electricity Emcore’s Solar Cells Operate
at Higher Efficiency
§ III-V
MJ Technology Improvements Offer
Still Higher Future Performance
Still Higher Future Performance
6
January
10 2008
Growth
Drivers of Space Solar
Major
Customers
§ Loral,
Lockheed Martin, Northrop-Grumman, Boeing, Astrium, GD, and ATK
Market
Drivers
§ Commercial
Satellites: 33
GEO awards in 2006, highest since 2001 (6
awards)
awards)
§ 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
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
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
manufacturing service company for government/defense programs
§ Technology
leader: Record high-efficiency solar cells for space applications
(32% with IMM design)
(32% with IMM design)
§ Solution
oriented: EMCORE provides enabling solutions to mission critical
programs
programs
7
January
10 2008
Solar
Flux
Lens
Solar
Cell
Receiver
1x
1,000x
Utilizes
advanced solar cells to provide most cost effective solution
Seven
5” Silicon Cells
One
1 cm2
Triple
Junction
CPV
Produce
Equal Power As
Terrestrial
Application of Triple
Junction Solar Cell with Concentrator
Junction Solar Cell with Concentrator
§ Lens
concentrates solar flux to 500-1,000 times
normal irradiance
normal irradiance
§ Area
of solar cell is then reduced by a factor of
500-1,000 compared to a full coverage
500-1,000 compared to a full coverage
§ Conversion
efficiency improves under
concentrated illumination
concentrated illumination
§ 37%
cell efficiency
in production
§ 39%
cell introduced
in 2007
§ 40%
cell projected
to be introduced in 2008
8
January
10 2008
Solar
Module Technologies
§ Crystalline
Si: Conversion efficiency of 12-14% at module level
§ Pros:
♦
Predominant
technology
♦
Most versatile for
all applications
§ Cons:
♦
Si shortage (at
least until late of 2008)
♦
Relatively high
price: ~$3.5-3.8/W
§ Thin
Film: Conversion efficiency of 5-7% at module level
§ Pros:
♦
Most
cost effective ~$2/W
♦
Easy to scale up in
production
§ Cons:
♦
Low efficiency of
surface area/land use
♦
Environmental
concerns with some materials (Cadmium Telluride)
§ Concentrator
Photovoltaics (CPV): efficiency of 25-30% at module level
§ Pros:
♦
More cost
effective: ~$3.6/W now and <$2/W in 3 years
♦
Most efficient land
use - more power generated per area
♦
Less equipment and
material requirement for production scale up
§ Cons:
♦
Suitable for
commercial, agricultural, and power utility applications
♦
More efficient for
direct illumination than diffused light
9
January
10 2008
|
|
||||
|
|
Year
of Production
Emcore Terrestrial Solar Cells
-
History & Roadmap
History & Roadmap
Emcore Terrestrial Solar Cells
-
History & Roadmap
History & Roadmap
Emcore
Solar Cell Technology - Performance at 500x
2005
2006
2008
P
33.0%
Concentrator
Triple
Junction
(CTJ)
36.0%
2nd
Generation
Concentrator
Triple
Junction
(CTJ2)
43.0%
Inverted
Meta-
Morphic
Morphic
IMM
39.0%
3rd
Generation
Concentrator
Triple
Junction
(CTJ3)
45.0%
2nd
Generation
(IMM2)
2010
P
30%
32.5%
35%
37.5%
40%
42.5%
45%
2007
10
January
10 2008
EMCORE
Terrestrial PV Products
§ Concentrator
Solar Cells and Receivers
§ 39%
efficient (under 1000x) cells achieved
§ 37%
efficient CPV cells in production
§ Aggressive
roadmap to 45% efficiency by 2010
§ Provide
standard and custom form factors to over
15 customers
15 customers
§ Solar
cell and receiver orders: $67M from GGE
§ Supply
agreement ($100M over 5 years)
§ A
new purchase order of 1M pieces solar cell receivers
§ CPV
Systems
§ Supply
agreement with World Water and Solar
Technologies ($100M over 3 years)
Technologies ($100M over 3 years)
§ Canada
Pod Generating Group (PGG)
(60 MW over 3 year)
(60 MW over 3 year)
§ Korea
CPV Solar Parks
(5.7 MW PO for FY08 + 14.3 MW LOI for CY08)
(5.7 MW PO for FY08 + 14.3 MW LOI for CY08)
§ Spain:
ISFOC (0.3MW in FY08) and others
§ Many
other new opportunities
11
January
10 2008
Growth
Drivers of EMCORE
Terrestrial PV Business
Terrestrial PV Business
§ CPV
Components
§ One
of the two major suppliers
• Best
performance with competitive price
• Strong
performance roadmap
§ Support
the entire CPV community
§ Current
annual capacity greater than 150MW
§ CPV
Systems
§ Gen
1 system operating “on sun” for 8 months
§ Gen
2 entered 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
system performance and cost basis
§ Costs
will be continuously reduced through system optimization and
solar cell efficiency improvement
solar cell efficiency improvement
12
January
10 2008
EFO
EBB
EBB
EFO
Microwave/RF
Transmitters/Receivers
Transmitters/Receivers
Parallel
Optics,
4 & 12x TxRx
4 & 12x TxRx
LX4,
CX4 TxRx
For 10G Ethernet
For 10G Ethernet
CATV
Transmitters/
Receivers
Receivers
Hybrid
Fiber Coaxial (HFC) Network
Telecom
Network
EBB
OC-192
TxRx
SFF Tunable
DWDM XFP
SFF Tunable
DWDM XFP
EFO
EMCORE’s
Components &
Subsystems in Networks & Premises
Subsystems in Networks & Premises
13
January
10 2008
1550nm
Transmitters,
Video Receivers, PON
Transceivers, EDFA’s
Video Receivers, PON
Transceivers, EDFA’s
RF
Satellite Links
Tx/Rx/Delay
Lines,
FOG’s, THz, Lithium
Niobate Devices
FOG’s, THz, Lithium
Niobate Devices
Analog
Video, HDTV/DTV
Video, Mobile Video and
IP Transport
Video, Mobile Video and
IP Transport
CATV
Transmitters and
Receivers, Subassembly
Boards, Lasers, Photo
Diodes, Chips
Receivers, Subassembly
Boards, Lasers, Photo
Diodes, Chips
FTTx
SPECIALTY
VIDEO
CATV
EMCORE
Broadband Product Lines
14
January
10 2008
Source:
Comcast
Comcast
CapEx Budget
-- 24% Increase in 07 from 06
-- 24% Increase in 07 from 06
15
January
10 2008
Broadband
(CATV, FTTP, Video
Transport) Business Strategy
Transport) Business Strategy
§ We
are a leading provider of Broadband
Components and Systems
§ Consolidated
technology, IP, product portfolio & CATV customer base
§ Market
Drivers of CATV Business
§ Upgrade
HFC network to 1 GHz to offer more value-added premium services
§ Build
new networks to businesses to offer commercial services
§ Strong
overseas market demand in Eastern Europe, Russia, India, China, etc
§ Positioned
as “Arms Merchant” to MSO and Telecom for broadband
buildout to offer “triple play” services
buildout to offer “triple play” services
§ Major
supplier to equipment OEMs serving multi-service operators (MSO’s)
• ~80%
share of the
non-captive market in the US
§ Emerging
supplier of FTTP components
• One
of the two
qualified B-PON transceiver suppliers to Verizon, and gaining
market share
market share
• Approved
vendor to 3
major G-PON transceiver customers
• Competitive
cost
through China manufacturing and vertical integration
§ Penetrated
into the high growth video transport and IPTV markets
16
January
10 2008
Parallel
Optics
LRM
SFP+
Tunable
SFF
80+km
XFP
LX4
CX4
EMCORE
Datacom/Telecom
Transceiver Product Portfolio
Transceiver Product Portfolio
17
January
10 2008
Source:
Cisco Systems
10GbE
Share estimated
to increase from 5% in
2006 to 45% in 2011
to increase from 5% in
2006 to 45% in 2011
Demand
for 10G Ethernet Increases
18
January
10 2008
Growth
Drivers for EMCORE
Datacom/Telecom Business
Datacom/Telecom Business
Product
Lines
§ Leading
Supplier of 10Gb/s Ethernet Components and Transceivers
§ 10Gb/s
TOSA/ROSA components for SR
§ Xenpak
LX4/CX4 and X2 CX4, sampling SFP+ SRL, LRM, & LR transceivers
§ Broadest
Portfolio of Parallel Optics Transceivers
§ 12-lane
transmitters/receivers for switching/routing and backplane
applications
§ 4-lane
transceivers for Infiniband applications
§ New
Products to Grow Telecom Business
§ XFP
DWDM 80km TxRxs
§ 300-pin
SFF fully C-band tunable transponders,
Platforms
§ State-of-the-art
VCSEL/PD Component Fab and PON Packaged Components
§ VCSEL/PD
chips: 1-10Gb/s
§ 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
19
January
10 2008
Product
Lines Acquired from Intel
§ Tunable
Lasers
§ Full
C & L band
tunable dense wavelength division multiplexing
(DWDM) lasers
(DWDM) lasers
§ Proven
for 10, 40,
and 100 Gb/s operations
§ Only
tunable laser
solution for 25 GHz channel spacing
§ Roadmap
to integrate
with a modulator
§ ITLAs
- Integrated Tunable Laser Assemblies
§ Full
C & L band
tunable DWDM CW lasers
§ Comply
with ITLA
multi source agreement (MSA)
§ Only
tunable laser
solution for 25 GHz channel spacing
§ Roadmap
to modulated
ITLA MSA
§ Telecom
Modules
§ Small
Form Factor
(SFF) fixed wavelength up to 40 km
transmission
transmission
§ Full
C & L band
DWDM tunable transponders for 80km
§ Roadmap
to DWDM
tunable transponder with dispersion
compensation
compensation
§ Roadmap
to SFF DWDM
tunable transponder
20
January
10 2008
Strategic
Value and Financial Benefits of
Acquiring Intel’s Telecom Optical Asset
Acquiring Intel’s Telecom Optical Asset
§ Strengthens
EMCORE’s competitive position in Telecom, adding the hottest
technology and products - tunable lasers and transponders
technology and products - tunable lasers and transponders
§ Tunable
transponders
are the key components in today’s agile telecom networks with
strong current and future demand
strong current and future demand
§ Solidifies
EMCORE’s
position as one of the major players in the fiber optics arena
§ Broadens
product
portfolio to help EMCORE develop additional business
§ Provides
instant
access to Tier-1 telecom customers for expanded product portfolio (e.g.
Fujitsu, Alcatel-Lucent, Nortel)
Fujitsu, Alcatel-Lucent, Nortel)
§ Strong
synergy with EMCORE’s infrastructure and products
§ Combined
with
internal laser and modulator capability, EMCORE will be one of the few
vertically integrated telecom fiber optics module suppliers
vertically integrated telecom fiber optics module suppliers
§ Ability
to amortize
existing fab and contract manufacturer infrastructure costs to improve
gross margin
gross margin
§ Clear
financial benefits from incremental scale of Intel business
§ Projected
to add
approximately $36M revenue to EMCORE’s FY08 (assuming closing by
end of February), and $85M projection by FY09
end of February), and $85M projection by FY09
§ Projected
to be
accretive from the 2nd
quarter under
EMCORE’s management
§ Margin
projected to
continue improving with internal components and leveraged cost of
contract manufacturers
contract manufacturers
21
January
10 2008
Revenue
History and Projection
from Current Businesses
from Current Businesses
$115
+40%
+40%
($
in millions)
$32
$50
$82
+64%
$143
+24%
$170
+19%
FY02
FY04
FY03
FY05
FY06
FY07
$210-230**
+26-
38%
FY08
Forecast
**
FY08 revenue guidance will be revised upwards, taking effect of Intel
acquisition and impact of announced CPV
system contracts, and released in early February after comprehensive reviews on material supply chain,
manufacturing capacity, and timing of revenue recognition.
system contracts, and released in early February after comprehensive reviews on material supply chain,
manufacturing capacity, and timing of revenue recognition.
22
January
10 2008
EMCORE Corporation
10th
Annual Needham Growth Stock Conf
January
11, 2007
New
York City
Reuben
F. Richards, Jr. Chief
Executive Officer
Chris
Larocca, VP and GM, EMCORE Broadband
Fiber Optics Division
Fiber Optics Division