SOMERSET, N.J.--(BUSINESS WIRE)--Feb. 2, 1999--
- Milestone Partnership with General Electric Lighting for Solid
State White Light
- Backlog increases to all-time record of $41.8 million
EMCORE Corporation (Nasdaq: EMKR) today reported results for the first quarter of fiscal 1999 ended December 31, 1998.
Revenue for the first quarter was $10.1 million, up 19% sequentially from $8.5 million in the quarter ended September 30, 1998. For the first quarter of fiscal 1998, revenue was $12.4 million. The Company reported a net loss for the first quarter of fiscal 1999 of $6.1 million, or $0.65 per diluted share. Sequentially, these results compare to a net loss of $6.7 million, or $0.71 per diluted share, for the quarter ended September 30, 1998. The Company reported a net loss of $4.15 inclusion of the one-time charge of $29.3 million related to the acquisition of MODE in the year-ago quarter ended December 31, 1997.
As of December 31, 1998, EMCORE's backlog was $41.8 million, an all-time record for the Company. This increase primarily relates to system bookings in Asia, the initial order for solar cells from Space Systems/Loral and an increase in average selling price of the TurboDisc production systems.
"As our record backlog and recent announcements of agreements with major strategic partners such as GE, Loral and Optek demonstrate, we have a pipeline of opportunities that should turn the Company's performance around after a year of unusual challenges," said Reuben Richards, EMCORE's President and Chief Executive Officer. "We are moving ahead with several exciting developments that are key to our strategy for returning EMCORE to operational profitability."
These developments include EMCORE's:
- Joint venture with GE Lighting. In January 1999, Emcore agreed,
subject to certain conditions, to form GELcore LLC, a joint
venture with GE lighting to develop and market white light and
color high-brightness light-emitting diode (LED) lighting
products.
- Long-Term Purchase Agreement with Space Systems/Loral. In
November 1998, Emcore signed a long-term purchase agreement,
with Space Systems Loral, a wholly owned subsidiary of Loral
Space and Communications. Under this agreement, which is
contingent upon our compliance with Loral's product
specification requirements, we will supply compound
semiconductor high efficiency gallium arsenide solar cells for
Loral's satellites.
- Introduction of the first VCSEL array. On December 14, the
Company's MicroOptical Device division (MODE) announced the
introduction of Gigarray(tm), the first 850nm vertical cavity
surface-emitting laser (VCSEL) 1x12 array designed for the
gigabit data communication and telecommunication switching
marketplace. Gigarray's advanced functionality meets the
increasing demand, led by the explosive growth of the Internet,
for optical internetworking products with bandwidth-intensive
applications.
- Partnership with OPTEK. In October 1998, Emcore formed EMTECH
SENSORS LLC, a joint venture with OPTEK Technology, Inc., a
packager and distributor of optoelectronic devices to market an
expanded line of magnetoresistive sensors to the automotive and
related industries.
- Opening of its new Albuquerque facility. On October 9, EMCORE
officially opened its new facility, EMCOREwest, at Sandia
Science and Technology Park. EMCOREwest expands the Company's
compound semiconductor production capacity.
- Completion of the private placement of $21.7 million of
redeemable convertible preferred stock. Net proceeds of the
private placement, which EMCORE announced November 30, have been
used to equip the new Albuquerque facility and for other
corporate purposes.
Gross profit for the quarter was $4.1 million and the gross profit margin was 41.0%, as compared to $6.0 million and 48.4% in the year-ago period. Sequentially, gross profit increased by 28% from $3.2 million to $4.1 million and the gross profit margin improved from 38% to 41%.
EMCORE Corporation is a leading provider of compound semiconductor wafers, devices process technology and production systems. Manufacturers throughout the world use EMCORE's MOCVD production systems and processes as the enabling technology behind a variety of advanced photonic and electronic applications. The Company's headquarters in Somerset, NJ recently attained ISO 9001 certification and its Pegasus device division attained QS 9002 certification. For further information about EMCORE, visit http://www.emcore.com.
The information provided herein may include forward-looking statements relating to future events, such as the development of processes, the commencement of production, or the future financial performance of the Company. Actual operating results may differ from such projections and are subject to certain risks, including, without limitation, risks arising from: changes in semiconductor industry growth, increased competition, delays in developing and commercializing new products, labor actions against the Company's customers or vendors, and other factors described in the Company's filings with the Securities and Exchange Commission.
EMCORE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended December 31, 1998 1997 Revenue............................ $ 10,125 $ 12,357 Cost of sales...................... 6,016 6,376 Gross profit....................... $ 4,109 $ 5,981 Operating expenses: Selling, general, and administrative................. $ 3,143 $ 3,003 Goodwill amortization........... 284 71 Research and development: One-time acquired in-process............... - 29,294 Recurring.................. 5,924 2,836 Total operating expenses........... $ 9,351 $ 35,204 Operating loss..................... ($5,242) ($29,223) Other expense: Stated interest expense, net..... $ 230 $ 70 Imputed warrant interest expense, non-cash............... 316 96 Equity in net loss of an unconsolidated affiliate....... 276 - ------------------------------- ------------------------------- Total other expense................ $ 822 $ 166 ------------------------------- ------------------------------- Net loss........................... ($6,064) ($29,389) =============================== =============================== Per share data: Net loss per basic share........... ($0.65) ($4.15) =============================== =============================== Net loss per diluted share......... ($0.65) ($4.15) =============================== =============================== Shares used in per share data calculations...................... 9,390 7,075 =============================== =============================== EMCORE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) At December 31, At September 30, 1998 1998 ------------------------------- ------------------------------- (Unaudited) ASSETS Cash and cash equivalents.......... $ 1,780 $ 4,456 Restricted cash.................... - 62 Accounts receivable, net allowance for accounts of $580 and $611 at December 31, 1998 and September 30, 1998, respectively................. 4,553 7,438 Accounts receivable, related party.. 2,517 500 Inventories, net.................... 12,483 12,445 Other current assets................ 290 208 ------------------------------- ------------------------------- Total current assets.............. 21,623 25,109 Property, plant and equipment, net.. 40,554 36,210 Goodwill............................ 2,174 2,457 Investments in unconsolidated affiliate.......................... 5,615 292 Other assets, net 1,670 2,090 =============================== =============================== Total assets....................$ 71,636 $ 66,158 =============================== =============================== LIABILITIES & SHAREHOLDERS' EQUITY Notes payable - related party.....$ - $ 7,000 Accounts payable.................. 9,129 12,023 Accrued expenses.................. 3,554 4,197 Advanced billings................. 5,303 3,180 Capital lease obligations - current......................... 702 673 Other current liabilities......... 142 53 Total current liabilities....... 18,830 27,126 Bank loans.......................... 15,950 17,950 Subordinated notes, net............. 7,904 7,809 Capital lease obligation, net of current portion.................... 596 755 Other liabilities................... 568 - Total liabilities................ 43,849 53,640 Mandatorily redeemable, convertible preferred Stock, 1,550 shares issued and outstanding at December 31, 1998 (redeemable at maturity for $21,700) 21,242 - Total shareholders' equity.......... 6,545 12,518 ------------------------------- ------------------------------- Total shareholders' equity and mandatorily redeemable convertible preferred stock.................... 27,787 12,518 =============================== =============================== Total liabilities, shareholders' equity and mandatorily redeemable, convertible preferred stock.......$ 71,636 $ 66,158
No comments:
Post a Comment