Emcore looks forward to profitability
For the year ended September 30, 2003, revenues were $113.1 million, a 29% increase from the $87.8 million recorded in the year ended September 30, 2002. Materials-related revenues were $60.4 million, an increase of 16% from the $51.9 million reported in fiscal 2002. System-related revenues were $52.7 million, an increase of 47% from the $35.9 million reported in fiscal 2002.
Gross profit in the fourth quarter improved 10% from the prior year to $3.8 million, and for the year, gross profit increased by $15.2 million to $14.5 million from a negative gross profit of $0.6 million in fiscal 2002.
For the year ended September 30 2003, operating expenses decreased 58% from $105.9 million in fiscal 2002 to $44.6 million in fiscal 2003. This annual decrease was primarily due to a significant reduction in R&D expenses and a non-recurring restructuring and impairment charge of $36.7 million. The company expects to achieve positive operating income during fiscal year 2004. Backlog from continuing operations is $33.1 million, up 76% from the $18.8 million reported in the previous quarter.
The company is guiding for a further 25% increase in revenues to $21-23 million for the December quarter.
"The divestiture of the MOCVD division is obviously an important strategic realignment of the company s business lines into higher revenue growth opportunities,” said Reuben Richards, president and CEO of Emcore. “We are now completely focused on the markets in which we see the most significant long term growth.
"Gross margins are obviously crucial in our markets and we expect margin improvement to come with the anticipated revenue growth, as evidenced by the substantial increase in backlog experienced this quarter. The high-speed data and telecommunications markets will see substantial growth in the coming years and that is the market we will continue to focus on and profit from. With that focus we expect Emcore to achieve positive operating income during fiscal year 2004. "