Emcore Suffers Setback After Great Fiscal Year but Remains Cautiously Optimistic

Emcore has been affected by the massive drop in oil prices and the economic recession. However, its results for fiscal 2008 were very good. Emcore reported a 41 percent increase in revenue for the year from $239.3 million in fiscal 2008 from $169.6 million for fiscal 2007. The company also reported a 107 percent international revenue increase of $48.8 million to $94.4 million. Both the fiber optics and photovoltaics segments increased revenue during the year. The company noted that annual revenue for the Fiber Optics segment increased by $60.9 million, or 55%, to $171.3 million, and annual revenue for the photovoltaics segment increased by $8.8 million, or 15%, to $68.0 million.

Since mid September the company’s fiber optics business had a $19.7 million loss for the quarter. It went from $53.6 million down to $46.1 million compared to the previous quarter. The government canceled a $5.3 million for GaAs-based solar cells on satellites. The company recorded another $4.5 million loss from CPV systems that became obsolete as the company upgraded from second-generation to third generation CPV technology. As a result of the setbacks, the company says it will lay-off some 100 workers. Despite this, Emcore is cautiously optimistic with 150 MW of GaAs solar currently in negotiations. Company Financial Results