I've owned this one for some time. At least it doesn't look to be dilutive.
Message 20855563
EMCORE Corporation Acquires K2 Optronics, Inc.
Thursday January 12, 8:27 pm ET
SOMERSET, N.J., Jan. 12 /PRNewswire-FirstCall/ -- EMCORE Corporation (Nasdaq: EMKR - News), a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and wireless communications markets, today announced that it has acquired privately-held K2 Optronics, Inc. of Sunnyvale, CA in a merger transaction. The transaction closed on Thursday, January 12, 2006. EMCORE, an investor in K2, paid approximately $4.8 million in EMCORE common stock (based on a 20-trading day weighted average price) to acquire the remaining part of K2 Optronics that EMCORE did not already own. EMCORE management anticipates that sales of K2 products and EMCORE direct modulated transmitters incorporating K2 Optronics' lasers will generate approximately $7 million of revenue for calendar year 2006 and $14 million of revenue for calendar year 2007. EMCORE management believes that upon integration K2 Optronics will be operationally profitable.
EMCORE anticipates continuing design and production operations in K2 Optronics' Sunnyvale facility for a six-month transition period, and, thereafter, the engineering design team and prototype production team will be integrated with EMCORE's Silicon Valley Design Center in Santa Clara, CA. Volume manufacturing is already outsourced to the same overseas contract manufacturer used by EMCORE.
Founded in 2000, K2 Optronics specializes in designing, developing, and manufacturing analog and digital transmission lasers for the cable television (CATV), telecommunications, sensing, and test and measurement industries. K2 Optronics was the first company to commercialize the concept of external cavity lasers (ECLs) into industry standard 14 pin butterfly packages. K2 Optronics' products are used in the following applications:
* CATV: Direct modulated analog transmitters for broadcasting
transmission over hybrid fiber coaxial (HFC) networks
* FTTx: Broadcast video overlay for advanced video services
* Telecommunications: Access, metro edge, metro transport, long haul, or
ultra long haul direct modulated transmitters at speeds of 2.5 Gb/s to
10 Gb/s
* Storage Area Networks: Quad rate (4.25 Gb/s) Fibre Channel applications
"EMCORE has been a long-time believer in the revolutionary potential of directly modulated transmitters based on K2 Optronics' ECL technology. We expect to see our CATV and FTTx customers insist on the performance and cost advantages that directly modulated transmitters can offer over traditional laser technology," said Dr. Hong Hou, Vice President and General Manager of EMCORE's Ortel division. "In addition to complementing our existing 1550 nm and 1310 nm analog product offerings, and allowing us to penetrate new markets where cost and performance are key drivers, K2 Optronics' ECL technology will deliver new product possibilities for our datacom and telecommunications customers."
"We have appreciated EMCORE's continued support of our technology and business. Beginning with our successful partnership in developing directly modulated transmitters for CATV applications, and continuing with our partnership in quadrature amplitude modulation (QAM) products, EMCORE has repeatedly shown the foresight to anticipate emerging trends in technology. The combination of EMCORE's optoelectronic subsystems capabilities and K2 Optronics' reliable ECL technology will provide the CATV industry with the most cost effective, longest reach, and most linear lasers commercially available today. We are excited to join EMCORE, where K2 Optronics' experience in analog and digital laser design and manufacture will further enhance EMCORE's core competencies," said Raj Kapany, CEO of K2 Optronics, Inc.
About EMCORE
EMCORE Corporation offers a broad portfolio of compound semiconductor- based components and subsystems for the broadband, fiber optic, satellite, and wireless communications markets. EMCORE has three operating segments: Fiber Optics, Photovoltaics, and Electronic Materials and Devices. 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 in the transport of voice, data, and video over copper, hybrid fiber/coax (HFC), fiber, satellite, and wireless networks. EMCORE's solutions include: optical components and subsystems for fiber-to-the-premise, cable television, and high speed data and telecommunications networks; solar cells, solar panels, and fiber optic ground station links for global satellite communications; and electronic materials for high bandwidth wireless communications systems, such as WiMAX and Wi-Fi Internet access and 3G mobile handsets and PDA devices. Through its joint venture participation in GELcore, LLC, EMCORE plays a vital role in developing and commercializing next- generation high-brightness LED technology for use in the general and specialty illumination markets. For further information about EMCORE, visit emcore.com.
Disclaimer
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: difficulties encountered in integrating K2 Optronics' business and operations, the benefits expected to be received by EMCORE and its customers from the acquisition; 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.
Source: EMCORE Corporation |
