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EMCORE Corporation News
EMCORE Corporation Announces 2008 Revenue Guidance and Preliminary Unaudited Results for Its First Quarter Ended December 31, 2007
Consolidated revenue for the quarter ended
Consolidated gross profit for the quarter ended
Excluding stock-based compensation expense, professional fees incurred associated with our review of historical stock option granting practices, non- recurring legal expenses, and severance and restructuring-related expenses (later referred to as "Adjusted Expenses" and disclosed in detail in the attached non-GAAP tables), operating expenses for the quarter ended
Excluding Adjusted Expenses, our adjusted operating loss for the quarter ended
Excluding Adjusted Expenses, our adjusted net loss for the quarter ended
As of
Cash, cash equivalents and marketable securities at
Management Discussion and Outlook:
"Fiscal 2008 has started on a positive note with our recent success in developing large CPV solar power system opportunities to be deployed in the Canadian, South Korean and Spanish markets. We are also very excited about the opportunity to supply up to 700 MW of solar power systems in the southwestern region of the
Company & Quarterly Highlights:
— EMCORE was awarded a 300-kilowatt (kW) CPV system contract by Spain's Institute of Concentrator Photovoltaics Systems (ISFOC). EMCORE expects to have its CPV systems installed in Castilla-La Mancha, Spain by December 2008. — EMCORE reached an agreement to construct an 850-kW solar power park in Extremadura, Spain. EMCORE will be utilizing its CPV solar power system and provide a turn-key solution with a scope of work including engineering, procurement, and construction (EPC). This project is expected to be completed before July 2008 in order to take advantage of the current high feed-in tariff. — EMCORE received a purchase order for one million CPV components from a prominent CPV system integrator. This order is expected to be completed by March 2009 with CPV products being deployed in projects within the Spanish market.
EMCORE will discuss its quarterly results on a conference call to be held on
About EMCORE
EMCORE Corporation is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. EMCORE's Fiber Optics segment offers optical components, subsystems and systems that enable the transmission of video, voice and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable television (CATV) and fiber-to-the-premises (FTTP) networks. EMCORE's Solar Power segment provides solar products for satellite and terrestrial applications. For satellite applications, EMCORE offers high- efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells and fully integrated solar panels. For terrestrial applications, EMCORE offers concentrating photovoltaic (CPV) systems for utility scale solar applications as well as offering its high-efficiency GaAs solar cells and CPV components for use in solar power concentrator systems. For specific information about our company, our products or the markets we serve, please visit our website at http://www.emcore.com.
Forward-looking statements
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. Such forward-looking statements include but are not limited to words such as "expects," "anticipates," "intends," "plans," believes," and "estimates," and variations of these words and similar expressions, identify these forward-looking statements. These forward-looking statements also include, without limitation, (a) any statements or implications regarding EMCORE's ability to remain competitive and a leader in its industry, and the future growth of EMCORE, or the industry and the economy in general; (b) statements regarding the expected level and timing of benefits to EMCORE from its current cost reduction efforts, including (i) expected cost reductions and their impact on EMCORE's financial performance, (ii) EMCORE's ability to reduce operating expenses associated with its recent acquisitions (iii) EMCORE's continued leadership in technology and manufacturing in its markets, and (iv) the belief that the cost reduction efforts will not impact product development or manufacturing execution; (c) any statement or implication that the products described in this press release (i) will be successfully introduced or marketed, (ii) will be qualified and purchased by our customers, or (iii) will perform to any particular specifications or performance or reliability standards; (d) any and all guidance provided by EMCORE regarding its expected financial performance in future periods, including, without limitation, with respect to anticipated revenues for the third quarter of fiscal 2008 or expected revenues from recent and anticipated acquisitions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) EMCORE's cost reduction efforts may not be successful in achieving their expected benefits, (including, among other things, cost structure, gross margin and other profitability improvements), due to, among other things, shifts in product mix, selling price pressures, costs and delays related to product transfers to lower cost manufacturing locations and associated facility closures, integration difficulties, and execution concerns; (b) EMCORE may encounter difficulties in integrating its recent acquisitions and as a result may sustain increased operating expenses, delays in commercializing new products, production difficulties associated with transferring products to EMCORE's manufacturing facilities and disruption of customer relationships (c) the failure of the products (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and, iv) to successfully compete with products offered by our competitors and (d) other risks and uncertainties described in EMCORE's filings with the Securities and Exchange Commission such as 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. 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.
EMCORE CORPORATION Condensed Consolidated Statements of Operations For the three months ended December 31, 2007 and 2006 (in thousands, except per share data) (unaudited) Three Months Ended December 31, 2007 2006 Product revenue $44,501 $35,626 Service revenue 2,386 2,970 Total revenue 46,887 38,596 Cost of product revenue 35,556 30,941 Cost of service revenue 1,532 2,159 Total cost of revenue 37,088 33,100 Gross profit 9,799 5,496 Operating expenses: Selling, general and administrative 16,154 12,539 Research and development 7,248 6,611 Total operating expenses 23, 402 19,150 Operating loss (13,603) (13,654) Other expenses (income): Interest income (427) (1,651) Interest expense 1,205 1,262 Loss on disposal of property, plant & equipment 86 - Foreign exchange gain (13) - Total other expenses (income) 851 (389) Net loss $(14,454) $(13,265) Per share data: Net loss per basic and diluted share $(0.28) $ (0.26) Weighted-average number of basic and diluted shares outstanding 52,232 50,875 EMCORE CORPORATION Condensed Consolidated Balance Sheets As of December 31, 2007 and September 30, 2007 (in thousands, except share data) (unaudited) As of As of December 31, September 30, 2007 2007 ASSETS Current assets: Cash and cash equivalents $14,610 $12,151 Marketable securities 15,150 29,075 Restricted cash 1,307 1,538 Accounts receivable, net 41,282 38,151 Receivables, related parties 335 332 Inventory, net 29,625 29,205 Prepaid expenses and other current assets 4,048 4,350 Total current assets 106,357 114,802 Property, plant and equipment, net 60,294 57,257 Goodwill 41,681 40,990 Other intangible assets, net 4,899 5,275 Investments in unconsolidated affiliates 14,872 14,872 Other non-current assets, net 2,001 1,540 Total assets $230,104 $234,736 LIABILITIES and SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $24,309 $22,685 Accrued expenses and other current liabilities 27,413 28,776 Income taxes payable 137 137 Convertible subordinated notes 85,012 - Total current liabilities 136,871 51,598 Convertible subordinated notes - 84,981 Total liabilities 136,871 136,579 Shareholders' equity: Preferred stock, $0.0001 par, 5,882 shares authorized, no shares outstanding - - Common stock, no par value, 100,000 shares authorized, 52,350 shares issued and 52,191 shares outstanding as of December 31, 2007; 51,208 shares issued and 51,049 shares outstanding as of September 30, 2007 453,358 443,835 Accumulated deficit (358,032) (343,578) Accumulated other comprehensive loss (10) (17) Treasury stock, at cost; 159 shares as of December 31, 2007 and September 30, 2007 (2,083) (2,083) Total shareholders' equity 93,233 98,157 Total liabilities and shareholders' equity $230,104 $234,736
Use of Non-GAAP Measures
EMCORE provides non-GAAP operating expenses, non-GAAP operating loss, and non-GAAP net loss as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to such financial measures is described below. This press release also contains a reconciliation of each of these non- GAAP financial measures to its most comparable GAAP financial measure.
EMCORE believes that the additional non-GAAP measures are useful to investors for financial analysis. In particular, management believes it is appropriate in evaluating EMCORE's operations to exclude gains or losses from one-time items such as patent litigation-related charges, charges associated with our review of historical stock option grants and severance and restructuring-related expenses because these items would make results less comparable between periods. Management believes adjusting for stock-based compensation expense is appropriate, as it is a non-cash expense, and adjusting is consistent with the practice of most of our competitors. Management also uses these measures internally to evaluate the company's operating performance, and the measures are used for planning and forecasting of future periods. In addition, many financial analysts that follow our Company focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
Non-GAAP financial measures are not in accordance with, or alternative for, generally accepted accounting principles in the
Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as indicated in the tables listed below:
EMCORE CORPORATION Non -GAAP Table - Operating Expenses Unaudited (in thousands) Three Months Ended December 31, 2007 2006 Operating expenses - as reported $23,402 $19,150 Adjusted Expenses: Severance and restructuring-related charges (455) (443) Stock option restatement-related expense (782) (1,811) Non-recurring legal expenses (965) (846) Stock-based compensation expense (5,200) (1,980) Operating expenses - Non-GAAP $16,000 $14,070 EMCORE CORPORATION Non -GAAP Table - Operating Loss Unaudited (in thousands) Three Months Ended December 31, 2007 2006 Operating loss - as reported $(13,603) $(13,654) Adjusted Expenses: Severance and restructuring-related charges 455 443 Stock option restatement-related expense 782 1,811 Non-recurring legal expenses 965 846 Stock-based compensation expense 5,449 2,326 Operating loss - Non-GAAP $(5,952) $(8,228) Operating loss per basic share - Non-GAAP $(0.11) $(0.16) EMCORE CORPORATION Non -GAAP Table - Net Loss Unaudited (in thousands) Three Months Ended December 31, 2007 2006 Net loss - as reported $(14,454) $(13,265) Adjusted Expenses: Severance and restructuring-related charges 455 443 Stock option restatement-related expense 782 1,811 Non-recurring legal expenses 965 846 Stock-based compensation expense 5,449 2,326 Net loss - Non-GAAP $(6,803) $(7,839) Net loss per basic share - Non-GAAP $(0.13) $(0.15) Contacts: EMCORE Corporation Adam Gushard - Interim Chief Financial Officer (505) 332-5000 info@emcore.com TTC Group Victor Allgeier (646) 290-6400 info@ttcominc.com
SOURCE EMCORE Corporation
