News Article
Emcore’s profits continue to plunge
Although it has a large back log with some new orders, Emcore is still on a losing streak after announcing poor financial results with operating and net losses totalling $9.4 million.
Emcore Corporation, a provider of compound semiconductor-based components, subsystems, and systems for the fibre optics and solar power markets, has announced its financial results for its second fiscal quarter ended March 31, 2011.
Consolidated revenue for the second quarter ended March 31, 2011 was $47.2 million, which represents a 2% decrease compared to the prior year. On a segment basis, revenue for the Fibre Optics segment was $30.0 million, which represents a 1% decrease compared to the same quarter the prior year . Revenue for the Photovoltaics segment was $17.2 million, which represents a 4% decrease compared to the prior year. Consolidated gross profit was $10.6 million, which represents a 33% decrease compared to the prior year and gross margin was 22.4%, which represents a decrease from the 32.7% gross margin reported in the prior year.
On a segment basis, Fibre Optics gross margin was 18.0%, which represents a decrease from the 24.4% gross margin reported in the prior year. Photovoltaics gross margin was 30.2%, again, a decrease from the 46.6% gross margin reported in the same quarter last year.
The consolidated operating loss was $4.2 million, which represents a $3.3 million increase in operating loss when compared to the prior year.. During the second quarter ended March 31, 2011, the Company recorded a $2.6 million litigation settlement gain related to a patent infringement award associated with the Company's Fibre Optics segment.
The consolidated net loss was $5.2 million, which represents a $3.7 million increase in net loss when compared to the prior year. The consolidated net loss per share was $0.06, which represents a $0.04 increase in net loss per share when compared to the same quarter last year. During the second quarter ended March 31, 2011, the Company recorded $0.6 million of non-operating expense related to the Company's Suncore joint venture.
As of March 31, 2011, the Company had a consolidated order backlog of approximately $50.5 million, a 12% decrease from the $57.3 million order backlog reported as of December 31, 2010.
On a segment basis, the Photovoltaics order backlog totalled $26.4 million, a 27% decrease from $36.1 million reported as of December 31, 2010. The Fibre Optics order backlog totalled $24.1 million, a 14% increase from $21.2 million reported as of December 31, 2010. Order backlog is defined as purchase orders or supply agreements accepted by the Company with expected product delivery and/or services to be performed within the next twelve months.
Emcore has however, received a large purchase contract from Space System/Loral for satellite solar cells. With this and other orders that it has received since March 31, 2011, the order backlog has increased significantly.
As of March 31, 2011, cash and cash equivalents and restricted cash was approximately $17.0 million. In April 2011, the Company announced a common stock private placement of $9.6 million. The closing of the private placement is subject to the completion of customary closing conditions for transactions of this type, including approval of applicable Chinese government agencies.
For the third quarter ending June 30, 2011, the Company expects consolidated revenue to be $48 to $50 million.
Emcore’s management discussed the Company's fiscal 2011 second quarter results for the period ended March 31, 2011 A webcast is available for replay on the Company's website.
The company’s management will also present at the 12th Annual B. Riley & Co. Investor Conference on Wednesday, May 25th at 3:00pm PT at the Loews Santa Monica Beach Hotel in Southern California.
