8/2...EMKR (+19 today)Revenue increases 70% to $30 million
SOMERSET, N.J.--(BUSINESS WIRE)--Aug. 2, 2000-- Backlog rises 116% to record $105 million
Company to increase revenue forecast for FY 00 & FY 01
EMCORE Corporation (Nasdaq: EMKR - news) today announced its financial results for the fiscal third quarter and nine months ended June 30, 2000.
EMCORE reported its second consecutive quarter of record revenue, which was fueled by increased bookings and shipments from all four of the Company's product lines. Revenue climbed 70% to $30 million from $17.7 million reported in the prior year quarter. On a sequential basis, revenue increased 26% from $24 million in the second fiscal quarter, driven by continued product ramp in the Company's broadband products. Backlog as of June 30, 2000 reached a new Company record of $105 million, an increase of 116% from June 30, 1999. For the fiscal 2000 third quarter, gross profit also reached a record level of $13 million, an increase of 60% from $8 million reported in the prior year quarter.
The Company reported an operating profit before goodwill amortization of $0.04 per share, compared to an operating loss before goodwill amortization of ($0.08) in the fiscal third quarter of 1999.
``EMCORE's record results for the quarter reflect the success of every one of our product lines as demand continues to increase at an unprecedented pace,'' said Reuben Richards, President and Chief Executive Officer. ``We are confident that EMCORE will achieve further revenue growth in view of the Company's record backlog and increased capacity. In light of these events, we expect to exceed $100 million in revenue for Fiscal 2000 and will increase our revenue projections for Fiscal 2001. These results also confirm both the quality of EMCORE's industry-leading products and the strength of the Company's business model.''
Net loss before goodwill amortization for the fiscal third quarter of 2000 was $362,000, or ($0.02) per diluted share, compared with a net loss before goodwill amortization of $4 million or ($0.42) per diluted share in the prior year quarter.
Revenue for the nine months ended June 30, 2000 was $70 million. Net loss before goodwill amortization for the period was $9 million or ($0.61) per diluted share.
Highlights of the Quarter
Company Signs Agreement with JDS Uniphase. EMCORE and JDS Uniphase Corporation have entered into a Joint Development Manufacturing and Marketing Agreement. Under this Agreement, EMCORE and JDS Uniphase will jointly develop, manufacture and market a family of fiberoptic array transceivers based on EMCORE's laser technology that facilitates light to logic (electronic signal in/modulated light signal out) for fiberoptic communications solutions used in switches, routers, and computer backplanes for OC-192, OC-768 and other proprietary network designs. EMCORE will manufacture VCSEL arrays and design gigabit speed control circuits, photodetectors, optical links and other components. JDS Uniphase will handle all marketing, worldwide sales, application support, customer service and distribution functions and will assist EMCORE with technical support for the optical packaging and testing for the products.
Company Strengthens Relationship With Motorola. EMCORE has been awarded Motorola's Standard Supplier Designation, making EMCORE the only qualified supplier of MOCVD production tools for Motorola's compound semiconductor factories. Under the companies' agreement, EMCORE will supply Motorola with epitaxial process technology, MOCVD production tools, and electronic device epitaxial wafers.
Triple-Junction Solar Cells Ship. EMCORE announced that its new triple-junction solar cells with 26% efficiency are in production and are being shipped to customers for space qualifications. Those applications demanding the absolute highest performance can gain 10% more power with EMCORE's triple-junction solar cells than with previous triple junction cell designs. These new solar cells are expected to significantly improve satellite communication economics by increasing payload capabilities.
Somerset, NJ Manufacturing Facility Expansion Progresses. The Company has completed the second phase of expansion at its Somerset facility and the relocation of its corporate offices to a building nearby. The facility has been expanded by 7,000 square feet, which increases its electronic material production capability nearly fourfold. The expansion will accommodate the addition of 10 new Enterprise (EM) MOCVD production tools for high volume production of pHEMTs and HBTs and enables EMCORE to develop new product lines to meet the requirements of a rapidly expanding customer base.
Sandia Technology Park Expansion Begins. The Company announced plans to expand its Albuquerque, New Mexico facility into a campus environment that will house EMCORE's solar cell, optical components and networking products. The expanded facility will triple the cleanroom manufacturing capacity of the plant to meet increased product demand, a growing customer base and new product lines.
EMCORE will host a conference call with analysts and investors on Thursday, August 3, 2000 at 9:00 a.m. (eastern). The call will be available on the Internet at www.emcore.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.
EMCORE Corporation is the leading vertically integrated materials science Company in the field of compound semiconductors. EMCORE offers comprehensive solutions for the compound semiconductor industry and its customers by operating six internal divisions: EMCORE Research & Applications Laboratory, TurboDisc® production systems, EMCORE Electronic Materials (E2M) epitaxial wafer foundry, and EMCORE Electronic Devices (E2D), MODE, and EMCORE Photovoltaic discrete device fabs. For further information about EMCORE, visit emcore.com.
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. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks, including risks arising from: 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 described in EMCORE's filings 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.
(tables to follow)
EMCORE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------------------------------
2000 1999 2000 1999
------------------------------------------------
Revenues:
Systems-related $ 17,561 $ 12,912 $ 42,908 $ 33,551
Materials-related 12,462 4,755 27,541 10,313
------------------------------------------------
Total revenues 30,023 17,667 70,449 43,864
Cost of revenues 17,537 9,853 41,304 25,072
------------------------------------------------
Gross profit 12,486 7,814 29,145 18,792
Operating expenses:
Selling, general and
administrative 5,919 3,650 15,914 10,018
Goodwill amortization 1,098 1,098 3,294 3,295
Research and
development 5,984 4,959 15,354 15,231
------------------------------------------------
Total operating
expenses 13,001 9,707 34,562 28,544
------------------------------------------------
Operating loss (515) (1,893) (5,417) (9,752)
Other expense 945 2,011 6,908 5,008
------------------------------------------------
Loss before extraordinary
item (1,460) (3,904) (12,325) (14,760)
Extraordinary item - 1,334 - 1,334
Net loss $ (1,460) $ (5,238) $(12,325) $(16,094)
================================================
Per share data:
Net loss per basic and
diluted share $ (0.09) $ (0.53) $ (0.83) $ (1.70)
================================================
Weighted average basic and diluted shares
outstanding used in per share
data calculations 16,529 10,175 15,082 9,665
================================================
Operations excluding goodwill amortization:
Operating income
(loss) $ 583 $ (795) $ (2,123) $ (6,457)
Net loss $ (362) $ (4,140) $ (9,031) $(12,799)
Net loss per diluted and
basic share $ (0.02) $ (0.42) $ (0.61) $ (1.35)
EMCORE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
At June 30, At September 30,
----------------------------------------------
2000 1999
----------------------------------------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents 120,048 $ 7,165
Accounts receivable, net of allowance
for doubtful accounts of
$592 and $563 at June 30, 2000
and September 30, 1999,
respectively 17,757 11,423
Accounts receivable, related
party 1,909 2,480
Inventories, net 32,457 13,990
Other current assets 3,225 389
----------------------------------------------
Total current assets 175,396 35,447
Property, plant and
equipment, net 57,233 46,282
Goodwill, net 1,832 5,126
Investments in unconsolidated
affiliates 10,646 9,496
Other assets, net 907 3,260
----------------------------------------------
Total assets $ 246,014 $ 99,611
==============================================
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 12,833 $ 5,359
Accrued expenses 5,099 4,173
Advanced billings 14,822 4,350
Capital lease obligations -
current 214 713
Other current liabilities 318 162
----------------------------------------------
Total current liabilities 33,286 14,757
Convertible subordinated
debenture - 7,800
Capital lease obligations,
net of current portion 88 141
Other liabilities 1,305 1,097
----------------------------------------------
Total liabilities 34,679 23,795
----------------------------------------------
Mandatorily redeemable, convertible
preferred stock, 1,030,000 shares
issued and outstanding at
September 30, 1999 - 14,193
Shareholders' Equity:
Preferred stock, $.0001 par value,
5,882,353 shares authorized. - -
Common stock, no par value, 50,000,000
shared authorized, 16,916,958 shares
issued and outstanding at
June 30,2000; 13,353,807 shares
issued and outstanding at
September 30, 1999 313,460 152,426
Accumulated deficit (95,765) (83,256)
Notes receivable from warrant issuances
and stock sales......... (6,360) (7,547)
----------------------------------------------
Total shareholders' equity 211,335 61,623
----------------------------------------------
Total shareholders' equity and
mandatorily redeemable,
convertible
preferred stock 211,335 75,816
----------------------------------------------
Total liabilities, shareholders' equity
and mandatorily redeemable,
convertible
preferred stock $ 246,014 $ 99,611
==============================================
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Contact:
EMCORE Corporation
Tom Werthan
Chief Financial Officer
732/271-9090
or
Michele Katz/Randy Hecht/Cathy Dawson
Press: Ann Marie Gaschler
Morgen-Walke Associates, Inc.
212/850-5600
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