16 February 2015

Emcore's quarterly revenue grows 28.7% to $18.4m

For its fiscal first-quarter 2015 (to end-December 2014), optical component, subsystem and system maker Emcore Corp of Alhambra, CA, USA has reported revenue from continuing operations of $18.4m, up 28.7% on the September quarter's $14.3m and up 25.6% on $14.7m a year ago (and better than the initial guidance of $14.3m given at the end of September).

"The team put in a solid quarter operationally, while finishing a massive realignment of the business," says Jeffrey Rittichier (CEO since 3 January). Emcore completed its sales of its Space Photovoltaics business on 10 December to SolAero Technologies Corp (for $150m) and of its Telecommunications Fiber Optics business (tunable laser and transceiver product lines) on 2 January to NeoPhotonics Corp of San Jose, CA, USA (for $17.5m, comprising $1.5m in cash and a note from NeoPhotonics with a two-year maturity and an escalating interest rate). The continuing Broadband Fiber-Optics business includes products for cable television (CATV) and fiber-to-the-premise (FTTP) networks as well as satellite communications, video transport and specialty photonics.

Gross margin has risen from 16.3% a year ago to 28.1%. This was despite an increase in selling, general & administrative (SG&A) expenses from $5.7m to $8.6m due to higher stock-based compensation and severance and compensation expense associated with the sale of the Photovoltaics business.

On a non-GAAP basis, loss from continuing operations was $0.9m ($0.03 per share), an improvement from $3.9m ($0.13 per share) a year ago (and slightly better than the expected $1-2m). However, including income from discontinued operations of $59.3m ($1.90 per share), GAAP net income was $56.1m ($1.80 per share), an improvement on a net loss of $2m ($0.07 per share) a year ago.

During the quarter, cash and cash equivalents rose by $126.9m to $147.6m (excluding any consideration from the sale of the Telecommunications Fiber Optics business in January).

For its continuing Broadband Fiber Optics business, for fiscal second-quarter 2015 Emcore expects revenue of $17-19m.  

"With the divestitures of the Photovoltaics business and the Telecommunications business, Emcore has a solid financial foundation and renewed focus on meeting the needs of its customers," comments Rittichier.

See related items:

Emcore's quarterly revenue growth in Fiber Optics offset by drop in Photovoltaics

Emcore completes sale of tunable laser and transceiver product lines for $17.5m

Emcore closes sale of Space Photovoltaics business to Veritas Capital affiliate for $150m

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Visit: www.emcore.com