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EMCORE Announces Record Fourth Quarter and Year-End Results

Source: Emcore

- Fourth quarter revenues increase 135% to $34 million - Fiscal year revenues exceed $104 million - Backlog climbs 190% to Company record of $125 million - EMCORE raises FY 2001 revenue estimates to $193 million

Somerset, NJ. EMCORE Corporation (Nasdaq:EMKR) today announced its financial results for the fourth quarter and fiscal year ended September 30, 2000.

EMCORE reported its third consecutive quarter of record revenues and gross profit, which was fueled by increased bookings and shipments from all of the Company s product lines. Fourth quarter revenues increased 135% to $34 million from $14 million reported in the prior year. For the fiscal year ended, revenues increased 79% to $105 million from $58 million reported in the prior year. On a sequential basis, revenues increased 13% from $30 million reported in the last quarter. Year-end backlog reached a new Company record of $125 million, an increase of 190% from $43 million reported in the prior year. For the fourth quarter, gross profit also reached a new record level of $14 million, an increase of 120% from $6 million reported in the prior year.

"For the third consecutive quarter, EMCORE has surpassed its own records for revenue and backlog. This reflects the strength of our new broadband product technology for which customer demand continues to accelerate," commented Reuben F. Richards, Jr., President and CEO. "During the quarter, we completed the latest phase of our facilities expansion and moved forward with our plans for aggressive investments to bring new fiberoptic and wireless products to market. We continue to develop more products in response to customer demand and are confident that EMCORE will continue to deliver strong results going forward. Additionally, given our robust backlog numbers and the projected revenue from our new products, we have raised revenue estimates for fiscal year 2001 to $193 million, a projected increase of 85% over the past year. This is the second time that the Company has raised revenue expectations in the past 90 days."

During the fourth quarter, the Company accelerated expenditures in connection with EMCORE s array transceiver program, manufacturing process development and transponder development and recorded an additional $7 million of R&D expenses. EMCORE previously announced that it has increased research and development estimates for fiscal year 2001 by $15 million. This includes pre-production costs and development of new wireless and fiber optic products including long wavelength VCSELs and photodetectors for Metro/Access markets, 2.5 gigabit per channel arrays and 10 gigabit serial devices for 10 Gigabit Ethernet applications. The Company has also expanded the array transceiver program to meet customer requests for a new transponder product.

"Recent advancements within several strategic R&D projects for fiberoptic and wireless products have presented EMCORE with promising opportunities for 2001 and beyond," commented Dr. Richard Stall, EMCORE s Chief Technology Officer. "Our strategy for success has always involved a serious commitment to product development targeting high growth markets."

For the fourth quarter, the Company reported an operating loss before goodwill amortization of $9 million, including a total of approximately $12 million of accelerated R&D expenditures relating to the Company s fiberoptic and wireless initiatives, compared to an operating loss before goodwill amortization of $4 million as reported in the prior year. Net loss before goodwill amortization was $12 million, or ($0.36) per basic and diluted share, compared with a net loss before goodwill amortization of $5 million or ($0.21) per basic and diluted share as reported in the prior year. Net loss before goodwill amortization and additional accelerated R&D expenditures was $5 million or ($0.15) per basic and diluted share.

For the fiscal year ended, the Company reported an operating loss before goodwill amortization of $11 million, compared to an operating loss before goodwill amortization of $10 million as reported in the prior year. Excluding the $7 million additional R&D expenditures in the fourth quarter, operating loss before goodwill amortization was $4 million for the fiscal year. Net loss before goodwill amortization was $21 million, or ($0.68) per basic and diluted share, compared with a net loss before goodwill amortization of $18 million or ($0.88) per basic and diluted share as reported in the prior year. Net loss before goodwill amortization and the $7 million additional R&D expenditures was $14 million or ($0.46) per basic and diluted share.

"This was a year of numerous accomplishments," said Tom Werthan, Vice President and EMCORE s Chief Financial Officer. "EMCORE is continuing to build momentum throughout the Company, including strong revenue growth, a debt-free balance sheet, recent technology advances and emerging new products. The Company s cash position of $102 million has provided us with the financial flexibility to fund future growth opportunities." Cash generated from operations in the quarter exceeded $8 million. The Company invested over $54 million in capital expenditures during the year in connection with its manufacturing capacity expansion and its joint venture investments. Highlights of the Quarter

New Arrays Announced. EMCORE announced the industry s first 850 nm 1x4 and 1x12 Oxide Vertical Cavity Surface Emitting Laser (VCSEL) arrays and high speed gallium arsenide (GaAs) photodetector arrays, capable of data rates up to 3.125 Gbps per channel for the short reach OC-192 applications. Designed specifically to serve the emerging requirements for short-reach optical interconnects in telecommunications modules and computing systems, the arrays provide high speed optical interconnects between switches routing Internet and electronic data and offer high speed cost effective links to enable faster data transmission without increasing the size of the switch. EMCORE is the first company in the industry to offer transceiver manufacturers an array and photodetector combination capable of both transmitting and receiving data. These optical links will form the backbone of a family of array transceivers the Company is currently developing.

Shipments of Wireless Communications Products Grow 750%. Increased demand for wireless communications devices has driven more than 750% growth in shipments of InGaP (indium gallium phosphide) epiwafers over the last year. More than half of the growth has been realized through the sale and distribution of 6-inch epiwafers. EMCORE s pHEMT and HBT epiwafers will be the critical components used in cellular phones that support multiple digital standards and handset applications. EMCORE technology meets these next generation wireless products requirements for much more memory, greater processing power and additional connectivity options.

EMCORE Named One of New Jersey s 50 Fastest Growing Technology Companies. For the second straight year, Deloitte & Touche named EMCORE to the "New Jersey Technology Fast 50" program, which ranks the 50 fastest growing technology companies in the state. The Company has had a five-year revenue growth rate of 222%.

CEO Reuben Richards, Inducted Into NJ s High-Tech Hall Of Fame. Mr. Richards was named a 2000 High-Tech Business Leader. He was honored for EMCORE s achievements in such areas as company growth and increased jobs.

EMCORE will host a conference call with analysts and investors on Thursday, November 16, 2000, at 9:00 a.m. (eastern). The call will be available on the Internet at www.emcore.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software. 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(R) 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 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. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks, including risks arising from: 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 described in EMCORE s filings with the Securities and Exchange Commission. 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.

Contact: EMCORE Corporation Thomas G. Werthan, Vice President and CFO Tel: 732/271-9090

EMCORE Corporation
Thomas G. Werthan, Vice President and CFO
Tel: 732/271-9090
Web site: http://www.emcore.com
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