Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Emcore Corp
Edited by the Electronicstalk Editorial
Team on 06 May 2005
Revenues rise for Emcore
Emcore Corp has released its financial results for the fiscal 2005 second quarter ended 31st March 2005.
Emcore Corp has released its financial results for the fiscal 2005 second quarter ended 31st March 2005 Revenues for the second quarter of fiscal 2005 were $30.4 million, an increase of 31% from the $23.2 million reported in the second quarter of fiscal 2004, and an increase of $3.4 million, or 13%, from the $27.0 million in the previous quarter
This article was originally published on Electronicstalk on 14 Feb 2005 at 8.00am (UK)
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All three of the company's operating segments, fibre optics, photovoltaics and electronic materials and devices, posted revenue increases both year-over-year and sequentially.
Gross profit for the quarter was $5.5 million or 18%, an increase of 104% from $2.7 million a year earlier.
The gross margin of 18% represents an increase of 10 percentage points from the 8% gross margins recorded in the previous quarter.
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For the six months ended 31st March 2005, revenues totalled $57.4 million, an increase of 24% or $11.1 million as compared with the $46.3 million recorded for the six months ended 31st March 2004.
Operating expenses of $9.2 million represented a decrease of $2.2 million or 19% from the same quarter last year and were down $1.4 million, or 13% sequentially.
For the six-month period, operating expenses fell $2.9 million, or 13% from the same year-ago period.
Included in operating expenses were severance charges of $177,000 and $649,000 for the three and six months ended 31st March 2005, respectively.
No severance charges were incurred for the three- or six-month periods ending 31st March 2004.
The continuing decline in operating expenses is the result of ongoing cost-cutting and increasing efficiencies.
The company expects additional decreases in operating expenses throughout the remainder of fiscal 2005.
Emcore reported a loss from continuing operations for the quarter of $4.9 million, or $0.10 per basic and diluted share.
Not including the $12.3 million gain from debt extinguishment, this compares to a loss from continuing operations of $10.2 million or $0.24 per basic and diluted share for the same quarter a year ago.
Sequentially, the loss from continuing operations decreased $4.2 million or $0.09 per basic and diluted share Emcore reported net income for the quarter of $7.6 million, or $0.16 per basic and diluted share, the result of receiving a $13.2 million payment as part of the earn-out from the sale of the capital equipment division in November 2003.
This compares to net income of $1.8 million or $0.04 per basic and diluted share for the same quarter a year ago.
Cash, cash equivalents and marketable securities at 31st March 2005 totalled approximately $44.5 million.
Income before interest, taxes, depreciation, amortisation and other noncash items (adjusted EBITDA) was approximately $133,000, an improvement of $4.7 million from the previous quarter.
In April, the company spun off product technology focused on gallium-nitride-based power electronic devices for the power device industry.
The new company, named Velox Semiconductor Corp (Velox) will initially commercialise fast, high-voltage diodes which will address problems of size and efficiency in the power supply industry.
Velox raised $6.0 million from three venture capital partnerships including DCM-Doll Capital Management, SAS Investors and DFJ New England.
Emcore contributed intellectual property and equipment receiving an approximate 20% stake in Velox.
Five employees also became full-time Velox personnel.
Velox named Tom Hierl as Chief Executive Officer.
Hierl founded Quantum Epitaxial Designs and served as its CEO until 1999 when he merged it with a British company and then as CEO took the successor company public.
Emcore named Dr Richard A Stall, Chief Technology Officer, as Emcore's designee to serve on Velox's new Board of Directors.
Emcore management estimates that its operating expenses will be reduced approximately $1.2 million annually through the formation and spinoff of Velox.
"Our second quarter was extremely strong as all three operating segments reported increases in revenues", commented Reuben F Richards Jr, President and CEO.
"Manufacturing efficiencies and improved yields generated gross margins of 18%, a 10% point increase from last quarter".
"Most importantly, we achieved EBITDA positive results one quarter ahead of schedule".
"The formation of Velox Semiconductor will further reduce operating expenses by $1.2 million a year and will allow Emcore to benefit from the technology by holding a 20% equity stake in the new company", added Richards.
Looking ahead to the third quarter, Richards stated: "We expect revenue of $30-32 million for the fiscal third quarter".
"We see continued strength in fibre optics, electronic materials and devices and photovoltaics with the newly announced products from last quarter driving growth".
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