Emcore Reports on Conclusion of Voluntary Investigation into Stock Grant Irregularities
CompoundSemi News StaffNovember 15, 2006...Emcore Corporation reported that the Special Committee put in charge of the investigation
into the rewarding of stock option grants, did find accounting irregularities,
but concluded that senior management was not involved. Today, Emcore Corporation
announced the results of a voluntary investigation into its historical stock
option grants initiated by senior management. Senior management initiated the
investigation with a recommendation to the board of directors after some accounting
irregularities surfaced.
The Special Committee, an independent counsel, and outside accounting experts,
together reviewed option grants from the time of Emcore’s initial public
offering in 1997 through 2006. The Special Committee’s advisors also reportedly
reviewed more than 250,000 e-mail messages, Board and Compensation Committee
minutes, and other documents, files and data. Additionally, the investigators
interviewed present and former officers and employees of the Company who were
involved in the option grants.
According to the company, the investigation found no evidence that senior management
took any actions in an attempt to defraud. Furthermore, the Special Committee,
which was in charge of the investigation, stated that it was unable to conclude
that the Company or anyone involved in the stock option granting process at
the Company engaged in willful misconduct. However, the grant process was marred
by carelessness and inattention to applicable accounting and disclosure rules.
Additionally the Special Committee cited the company’s failure to maintain
adequate controls concerning the issuance of stock options, as a contributing
factor.
The review of the stock option grants revealed that senior management did not
receive any option grants between the October 3, 2001 and the May 18, 2004 grants,
the period during which the company’s stock was at its lowest point with
an average around $2 and a low of about $1.
The Special Committee found that there were occasions after the grant date
and exercise price was set that administrative changes were made to the grant
lists. The Special Committee found that in 2000 and 2004, even after lists had
been announced as “final” and a grant date set, later adjustments
to the lists sometimes included changes both in the number of options granted
to individuals and in the aggregate number of options granted. In 2000, the
committee found that about 13 percent of the individuals on the list registered
a change in the number options they were awarded. The number of options set
forth on the list increased by approximately 9 percent.
The Special Committee reported, that they did find certain instances when stock
option grants increased in value due to “hindsight.” The committee
used the term “hindsight” to refer to the limited number of occasions
when the number of shares purchased was increased when the stock option grant
was changed to reflect a lower stock price at a date prior to the actual day
the stock option grant was issued. However, the Special Committee found that
this was the result among other things, inadequate controls and practices, and
was not done by senior management. Company
News Release
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November 15, 2006...TriQuint Semiconductor, a maker of microwave and millimeter wave products,
introduced three gallium arsenide (GaAs) integrated circuits for point-to-point
radio and satellite communications. The company based in Hillsboro, Oregon USA,
says the new devices offer size, performance, and cost advantages. TriQuint
unveiled the devices at the Electronic 2006 trade fair, which runs November
14-17 in Munich, Germany. According to the company, the new products address
original equipment manufacturer (OEM) needs for frequency upconversion in the
transmit (Tx) and local oscillator chains for digital radio and satellite communications
systems.
TriQuint’s new designs target 18, 23 and 26 GHz applications including
digital radio and K-band satellite communications, and all of its new product
releases are 100% DC and RF tested (on-wafer) to ensure performance compliance.
TriQuint says the offer the high frequency, high performance market robust solutions
that address the need for lower-cost products well suited to current and next-generation
designs. TriQuint also says that the devices are produced with very thick protective
surface passivation, and are therefore able to offer a superior level of environmental
robustness suitable for non-hermetic packages.
The TGC4405 reportedly provides: a high highly integrated design specifically
for upconversion, a local oscillator (LO) frequency doubler, and output RF signal
amplification in a small, single product. TriQuint says its new TGC4402 was
created for to provide upconversion without an integral LO doubler or output
amplifier. Both the TGC4405 and x4402 reportedly employ single-ended designs
that don’t require external baluns. The TGC4403 is a millimeter wave frequency
doubler that includes an output buffer amplifier. Company
News Release Future Truce Possible in DVD Format War
CompoundSemi News StaffNovember 10, 2006...Not sure which type of next generation DVD player to buy? You may not have
to. Several companies have decided to produce next generation DVD players that
play both Blu-ray and HD-DVD disks. EE Times reported earlier this week that
Broadcom claimed to have developed the first single chip solution for all kinds
of DVDs. EE Times also predicted that universal players supporting the standards
should be available some time next year.
Broadcom reportedly introduced a high definition audio/video decoder chip supporting
both formats in January. However, the company says the latest chip integrates
more functionality including: video and audio outputs, an array of system and
network connectivity interfaces, DSP-based audio processors, dedicated graphics
engines, and a multi-stream HD video decoder. According to the EE Times article,
the chip includes application programming, interface support, and full navigation
sweets for both formats in addition to current DVD formats.
It has all the audio and video compression standards for Blu-ray, HD DVD, DVD,
DVD-R, DVD-VR, and audio CDs. At the heart of both systems is the blue laser
diode which can only be produced with GaN. So whether or not there is a format
war, the compound semiconductor industry benefits. Epitech Increases AlGaInP LED Production Capacity
CompoundSemi News StaffNovember 10, 2006...Epitech Corporation of Tainan, Taiwan has again increased its production capacity
with the purchase of an Aixtron MOCVD reactor. The latest purchase of the three
AIX 2600G3 will reportedly go towards the mass production of AlGaInP LEDs at
Epitech’s facility in the Tainance Science-based Industrial Park in southern
Taiwan. According to Aixtron each reactor will be supplied in the 12x4-ince
multiwafer configuration. Aixtron pointed out that the order adds to Epitech’s
recently purchased Thomas Swain Crius 30x2-inch wafer MOCVD reactor, which is
to be utilized for GaN wafer production. For almost five years, Epitech has
been producing epiwafers and chips for AlGaInP red, orange, and yellow-green
LEDs in addition to InGaN blue and green power LEDs.
Mr. Semi Wang, President of Epitech Technology Corporation, commented, "The
AIX 2600G3 technology was chosen because of our long-standing experience and
confidence with AIXTRON’s MOCVD equipment. We are well satisfied with
the performance of our existing AIXTRON systems. Adding to the existing tools,
of which most are currently being upgraded to the latest configuration, we now
transition to the latest generation of MOCVD processes for optoelectronics.
Their capabilities are particularly advantageous with respect to material uniformity,
thickness, doping, and composition. The Planetary Reactor provides several clear
advantages over other MOCVD reactor types and will be the foundation for our
planned strategic expansion of volume production to meet growing customer demand."
Aixtron
News Release TriQuint Introduces GaAs Bluetooth Amplifier
CompoundSemi News StaffNovember 10, 2006...TriQuint has introduced a new gallium arsenide (GaAs) Bluetooth amplifier for
high data rate, long-range applications at the 2006 Electronica Exhibition in
Orlando, Florida. According to the company the amplifier enables high power
efficiency and low power enhanced data rate (EDR) v2.0 Class 1 operation. It
also boasts 50 percent power added efficiency (PAE) for longer mobile device
life. TriQuint said it has added the device to support the Class 1 needs the
Bluetooth market, which Strategy Analytics reported is growing at a compound
annual growth rate of 24 percent.
According to TriQuint, its InGaP HBT process technology for the amplifier,
allows high integration and enables smaller device size. Like other GaAs devices
it provides stable and reliable operation. The device is also EDR compliant,
which allows system data rates of 2- and 3-Mbps. TriQuint points out that the
device achieves the high linearity required for these modulation modes and data
rates while consuming low power with a high power added efficiency (the PAE
is 50 percent).
“Class 1 Bluetooth systems allow up to 100 meter ranges and provide for
high data rates. Class 1 Bluetooth is ideal for handsets and use in non-handset
devices that make up approximately 45% of the projected market,” said
Berry Leonard, TriQuint Product Marketing Manager. "This new amplifier
is ideally suited for longer-range Class 1 designs that are increasingly being
targeted by manufacturers of Bluetooth-enabled products,” he added. Company
News Release Joint Ventures, Mergers, and Acqusitions Prevalent in CS Sector in Q3 2006, Strategy Analytics Says
CompoundSemi News StaffNovember 8, 2006...Strategy Analytics released its regular annalysis of compound semiconductor
news. Strategy Analytics (SA) noted that during the third quarter of 2006, several
important joint ventures, mergers, and acquisitions dominate the landscape of
the compound semiconductor industry in both the RF and LED markets. Among the
mergers, in mid September, Freescale Semiconductor of Austin, Texas USA, a semiconductor
company which does some work with the compounds in wireless components, agreed
to be acquired by a private equity consortium in a transaction valued at $17.6
billion. According to SA, Freescale has become a private equity company like
Avago and NXP. (Ref: Sept.
News Release). Additionally Jazz Semiconductor merged with a wholly owned
subsidiary Acquicor Technology Incorporated.
Strategy Analytics also pointed Epistar’s move to acquire two more Taiwan-based
InGaN LED makers. (Ref: Coverage).
Strategy Analytics predicts that this move may thrust Epistar into the ranks
of the top five InGaN LED suppliers. Despite this, equipment manufacturer, Hermes-Epitek,
and DRAM manufacturer, ProMOS formed the joint venture EpiLED.
“Consolidation in the LED market, especially in Taiwan, is a prerequisite
to improving product quality and consistency so that the solid state lighting
community can start serving the general lighting markets,” commented
Asif Anwar, GaAs service Director. “While it may seem surprising to
many observers that Promos and Hermes-Epitek have chosen to enter this consolidating
market, the joint venture can be successful if it is able to harness silicon-style
manufacturing philosophies to LED manufacture.”
“The increased merger and acquisition activity surrounding companies
active in the RF industry underlines the continued strength of the RF markets,”
noted Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies
Practice. “The appetite of private equity firms for companies such
as Freescale underlines strong performance as a result of healthy demand from
end markets.” Strategy
Analytics News Release Our news features are reported
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