Emcore boosted by $8 million satellite panel order
Emcore is to make solar panels for a major satellite manufacturer under a contract valued at $8 million.
The contract win means that Emcore will now resume production at its solar panel facility in City of Industry, CA, which had been earmarked for closure this year (see related story).
Emcore is still planning to close the Californian plant, albeit at a later time than expected, probably in 2007.
The satellite manufacturer needs an initial batch of solar panels for a new communications payload, which one analyst believes could be part of a military program.
That satellite will be launched into a geosynchronous orbit with solar panels expected to ship in late 2006, while Emcore says that several additional solar panels may be needed as early as 2007.
The cost to Emcore of closing its City of Industry plant will be reduced as a result of the new business, and to be spread over a longer period.
And with the photovoltaic sector making up around 27.6% of its business, the order will add momentum to Emcore's already-growing top-line revenue and be reflected in an improved gross margin.
