EMKR ($24-$21.40-?) eps -0.45 Announces Record Operating 5c vs 5c Profit and Sixth Consecutive Quarter of
Record Revenues
Business Editors
SOMERSET, N.J.--(BUSINESS WIRE)--Aug. 8, 2001--EMCORE Corporation
(NASDAQ: EMKR - news), a leader in compound semiconductor technologies
for global communications applications, today announced financial
results for its fiscal third quarter ended June 30, 2001.
Revenues for the quarter ended June 30, 2001 reached a sixth
consecutive record of $53 million, up 76% compared to revenues of $30
million for the corresponding quarter of fiscal 2000 and up 10%
sequentially compared to revenues of $48 million for the quarter ended
March 31, 2001. The increase in revenues is the direct result of new
material technologies being introduced in the datacom and telecom
markets to relieve data congestion and expand network capacity.
Gross profit for the quarter ended June 30, 2001 reached $22
million, an increase of 75% compared to $12 million for the
corresponding quarter of fiscal 2000, and an increase of 12%
sequentially compared to gross profit of $20 million for the quarter
ended March 31, 2001. Gross margin percentages also increased
sequentially from 40.9% in the prior quarter to 41.4% in the quarter
ended June 30, 2001.
EMCORE also achieved its second consecutive quarter of increased
operating income. Operating income for the quarter ended June 30, 2001
was $915,000, or $0.03 per share, excluding goodwill amortization,
compared to operating income of $31,000, or $0.00 per share, excluding
goodwill amortization, for the quarter ended March 31, 2001.
During the quarter, EMCORE expanded its optical device and fiber
optic product lines and began commercial production of its 15 Gbps
parallel optical interconnect for very short reach datacom and telecom
networks, which marks the first offering from EMCORE's Fiber Optic
group. The transceiver module from EMCORE exemplifies the new age of
optical interconnects for switches and routers for datacom and telecom
equipment manufacturers. EMCORE also recently announced the commercial
availability of an 850 nm, 10 Gbps gallium arsenide (GaAs)
photodetector to pair with EMCORE's 10 Gbps oxide Vertical Cavity
Surface Emitting Laser (VCSEL). This combination enables the Company
to provide a matched solution for transmit and receive functionality.
Reuben F. Richards, Jr., President and CEO commented, "We had an
outstanding quarter with record revenue and record operating
performance, which reflects the strength of and demand for the new
products we have introduced in the past two fiscal quarters. By
offering these innovative products, EMCORE is able to provide its
customers with a single supply source for manufacturer-friendly
solutions to the broadband communications markets."
Mr. Richards added, "We are successfully coping with the economic
downturn affecting most areas of technology. Our goal now is to
position ourselves to meet the challenges of the current economic
environment and increase our market share in the critical broadband
and fiberoptic segments. We have increased operational efficiencies
that will allow us to take full advantage of any market opportunities.
We believe that our diversified product portfolio helps us in this
challenging environment. Although sales in some product lines have
decreased, other product lines have increased both in terms of dollar
amount and market share. We feel market demand is sufficient to
continue to grow our business as we execute against our product
opportunities."
General and administrative expenses decreased approximately
$500,000 from the prior quarter due to cost control programs enacted
during the quarter. Research and development expenses increased 16%
from prior quarter as EMCORE finalizes the development and
commercialization of new fiber optic products, including long
wavelength VCSELs (vertical cavity surface emitting lasers), optical
subassemblies and modules. Excluding non-recurring items and goodwill
amortization, net loss for the quarter decreased 39% sequentially to
$1.7 million or $(0.05) per share, compared to a net loss of $2.8
million, or $(0.08) per share for the quarter ended March 31, 2001.
Recent Developments and Highlights of the Quarter:
On August 6, 2001, EMCORE announced the commercial production of
its new 15 Gbps parallel optical interconnect for high-speed data
links, very short reach OC-192 optical links, and board-to-board and
shelf-to-shelf high-speed interconnects for optical backplanes. The
modules perform logic-to-light and light-to-logic conversions for data
transmission over multimode fiber ribbon cable, at a wavelength of
850nm and a power consumption of typically just 2 watts for the pair.
EMCORE also announced the development of a VSR transponder that is
pluggable and compliant with the industry-wide 300 pin multi-source
agreement and with the Optical Internetworking Forum's Implementation
Agreements for SERDES-framer interface (SFI-4) and VSR OC-192
interfaces. The transponder is anticipated to be in commercial
production in September 2001.
On August 2, 2001, EMCORE sold its minority ownership position in
the Uniroyal Optoelectronics, LLC joint venture to Uniroyal Technology
Corporation, (NMS: UTCI) and received 2.0 million shares of UTCI
common stock as consideration for the transaction. EMCORE will
continue to be an important vendor of MOCVD equipment to Uniroyal
Optoelectronics, LLC. EMCORE will report a gain on the transaction in
the fourth quarter of fiscal 2001.
On May 7, 2001, EMCORE completed the private placement of $175
million aggregate principal amount of 5% convertible subordinated
notes due 2006. The notes are convertible into EMCORE common stock at
a conversion price of $48.76 per share. The Company is using the
proceeds from this offering for general corporate purposes, including
capital expenditures, working capital, funding its joint venture and
research and development. In addition, the Company may use a portion
of the proceeds of the offering to strategically acquire or invest in
complementary businesses, products or technology, either directly or
through its joint venture.
Blaze Network Products and Cognet MicroSystems, a division of
Intel, selected EMCORE's Coarse Wavelength Division Multiplexing
(CWDM) VCSELs for high-speed data communications. With these VCSELs,
Blaze plans to be the first to market with the smallest pluggable 10
Gigabit transceiver in the industry. Cognet will use the short
wavelength VCSELs for extending the reach of multimode fibers.
EMCORE expanded its production technology offerings with the
addition of the Enterprise 300LDM for datacom and telecom applications
and the Enterprise 450 series for wireless communications and solid
state lighting applications. These new tools serve as the enabling
technology for EMCORE's electronic materials and optical device
product offerings and will enhance the Company's ability to
significantly improve device-manufacturing economics. The tools
decrease the cost of ownership by maximizing the efficiency of
material usage, reducing cycle times and achieving materials quality
that enables next generation devices.
EMCORE's Electronic Materials Division achieved two significant
milestones as a high volume supplier of HBT and pHEMT transistor
materials for high-speed wireless communications. EMCORE reported the
shipment of a record 15,000 6-inch HBT and pHEMT transistor wafers in
a 12-month period. The Electronic Materials Division also earned the
prestigious QS-9000 certification for its wafer manufacturing
activities based on its commitment to quality products and services.
As announced earlier, EMCORE will discuss results on a conference
call to be held August 9, 2001, at 9:00 a.m. ET. To participate in the
call, local and international callers can dial (719)-457-2657. A
replay will be available beginning 12:00 p.m. ET on August 9, 2001
until 12:00 a.m. ET on August 13, 2001. The replay number is
888-203-1112, passcode: "792085".
The conference call will also be available via the Internet by
accessing the EMCORE web site 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. A replay of the conference
call will also be available via the EMCORE web site.
EMCORE Corporation offers a versatile portfolio of compound
semiconductor products for the rapidly expanding broadband and
wireless communications and solid-state lighting markets. The
Company's integrated solutions philosophy embodies state of the art
technology, material science expertise and a shared vision of our
customer's goals and objectives to be leaders and pioneers in the
rapidly growing world of compound semiconductors. EMCORE's solutions
include: optical components for high speed data and
telecommunications; solar cells for global satellite communications;
electronic materials for high bandwidth communications systems, such
as Internet access and wireless telephones; MOCVD tools for the growth
of GaAs, AlGaAs, InP, InGaP, InGaAlP, InGaAsP, GaN, InGaN, AlGaN, and
SiC epitaxial materials used in numerous applications, including data
and telecommunications modules, cellular telephones, solar cells and
high brightness LEDs. 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. Words such as
"expects," "anticipates," "intends," "plans," believes," and
"estimates," and variations of these words and similar expressions,
identify these forward looking statements. 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.
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EMCORE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenues:
Systems-related $ 38,949 $ 17,561 $ 98,209 $ 42,908
Materials-related 13,941 12,462 42,652 27,541
Total revenues 52,890 30,023 140,861 70,449
Cost of revenues 30,990 17,537 82,852 41,304
Gross profit 21,900 12,486 58,009 29,145
Operating expenses:
Selling, general and
administrative 7,096 5,919 21,631 15,914
Goodwill amortization 155 1,098 992 3,294
Research and development 13,889 5,984 39,066 15,354
Total operating expenses 21,140 13,001 61,689 34,562
Operating income 760 (515) (3,680) (5,417)
Total other expense (income) (2,657) 945 (2,281) 6,908
Net loss $(1,897) $(1,460) $(5,961) $(12,325)
Per share data:
Net loss per basic and
diluted share $ (0.06) $ (0.04) $ (0.17) $ (0.41)
Weighted average basic and
diluted shares outstanding
used in per share data
calculations 34,452 33,058 34,256 30,164
Operations excluding
goodwill amortization:
Operating income (loss) $ 915 $ 583 $(2,688) $ (2,123)
Net loss $(1,742) $ (362) $(4,969) $ (9,031)
Net loss per basic and
diluted share $ (0.05) $ (0.01) $ (0.15) $ (0.30) |
