EMCORE Corporation Reports Fourth Quarter and Year End Results

- Revenue Increased 70% to $14.5 Million - Backlog Stands Today at $47 Million - Company Comments on Fiscal 2000 Outlook

EMCORE Corporation today reported financial results for the fourth fiscal quarter and year ended September 30, 1999.

Revenue for the fourth fiscal quarter increased 70% to $14.5 million, in line with the preliminary estimate the Company announced on September 28, 1999, up from $8.5 million in the fourth quarter of 1998. Gross profit for the quarter was up 99% to $6.4 million from $3.2 million in the fourth quarter of 1998. The Company reported an operating loss before goodwill amortization of $3.5 million, compared to a loss of $5.3 million in the fourth quarter of 1998. Net loss for the quarter decreased to $6.6 million or $0.50 per diluted share compared to a net loss of $7.5 million or $0.80 per diluted share in the same period of 1998.

Due to the uncertainty in the timing of obtaining export licenses from the US State Department, the company is lowering its expectations for solar cell revenue in the first fiscal quarter of 2000. The majority of solar cell shipments anticipated to have occurred in this quarter will now be scheduled for the quarter ending March 31, 2000. Without the export licenses, the Company estimates that revenue in the first fiscal quarter of 2000 will be approximately 10% higher than revenue reported in the fourth fiscal quarter of 1999. The Company now estimates that revenue from solar cell shipments, previously anticipated to be $32 million for fiscal year 2000, will be approximately $20 million because of the delays in obtaining export licenses. The Company views this as a timing issue and believes that some of this revenue will be recovered in fiscal year 2001.

For the fiscal year ended 1999, revenue increased 33% to $58.3 million compared to $43.8 million in the prior year period. The operating loss before goodwill amortization for the fiscal year ended 1999 was $10.0 million compared to $31.0 million (including a one time charge of $19.5 million for in-process research and development) in the fiscal year ended 1998. The net loss before the extraordinary item was $21.4 million or $2.05 per diluted share, compared to $36.4 million or $4.15 per diluted share in the year-ended 1998. In the third of fiscal 1999, the Company recorded an extraordinary loss of $1.3 million related to the early extinguishment of debt.

"Growth prospects for the Company and its product markets improved substantially during the quarter," commented Reuben Richards, President and CEO. "During this period we saw a dramatic increase in customer demand specifically for fiber optic products and RF materials. We anticipate continued growth in our HBT, pHEMT and VCSEL business resulting from the rapidly growing datacom and cellular phone markets. During the period, we made significant additions to our operating management in these divisions and are optimistic about all aspects of our operations and the strength of our $47 million backlog.

"We are also very pleased to announce that EMCORE was awarded the 1999 Small Business Innovation Research award by the Technology Utilization Foundation for the development of our innovative GaN based technology. This prestigious award underscores our achievements in broad band communications and solid state lighting."

EMCORE Corporation is the leading vertically integrated materials science Company in the field of compound semiconductors. EMCORE offers comprehensive solutions for the compound semiconductor industry and its customers by operating six internal divisions: EMCORE Research & Applications Laboratory, TurboDisc® production systems, EMCORE Electronic Materials (E²M) epitaxial wafer foundry, and EMCORE Electronic Devices (E²D), MODE, and EMCORE Photovoltaic discrete device fabs. For further information about EMCORE, visit http://www.emcore.com.

The information provided herein may contain forward-looking statements relating to future events that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are cancellations, rescheduling or delays in product shipments; delays in obtaining export licenses for product shipments; manufacturing capacity constraints; lengthy sales and qualification cycles; difficulties in the production process; the future financial performance of the Company and its Joint Ventures; delays in developing and commercializing new products; increased competition; labor actions against the Company s customers or vendors; changes in the compound semiconductor industry, including overall growth of the industry and the continued acceptance of the Company s MOCVD technologies; and other factors detailed in the Company s filings with the Securities and Exchange Commission, including the registration statement on Form S-3 filed on June 9, 1999.

Contacts:
EMCORE Corporation
394 Elizabeth Avenue
Somerset, NJ 08873
Tom Werthan Vice President, Finance and Administration
Tel: +1 (732) 271-9090, ext 4031
or
Morgen-Walke Associates, Inc.
380 Lexington Avenue, 50th Floor
New York, NY 10168-5199
Connie Bienfait
or
Cathy Dawson Press
inquiries: Rob Ingram
Tel: +1 (212) 850-5600 EMCORE Corporation
394 Elizabeth Avenue
Somerset, NJ 08873
Tom Werthan Vice President, Finance and Administration
Tel: +1 (732) 271-9090, ext 4031
or
Morgen-Walke Associates, Inc.
380 Lexington Avenue, 50th Floor
New York, NY 10168-5199
Connie Bienfait
or
Cathy Dawson Press
inquiries: Rob Ingram
Tel: +1 (212) 850-5600