News Article
Emcore’s Q3 revenue in line with guidance
The company has reported revenue of $49.5 million for the latest quarter and says it projects Q4 revenue to be in the range of $51 to $55 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 third quarter ended June 30, 2011.
Revenue:
Consolidated revenue for the third quarter ended June 30, 2011 was $49.5 million, which represents a 6% increase compared to the prior year.
On a segment basis, revenue for the Fibre Optics segment was $33.3 million, which represents a 6% increase compared to the prior year. Revenue for the Photovoltaics segment was $16.2 million, which represents a 7% increase compared to the same quarter last year.
Gross Profit:
Consolidated gross profit was $9.5 million, a 26% decrease compared to the prior year, while consolidated gross margin was 19.1%, a decrease from the 27.5% gross margin reported the same time last year.
On a segment basis, Fibre Optics gross margin was 19.4%, a decrease from the 25.9% gross margin reported in the prior year. Photovoltaics gross margin was 18.6%, which represents a decrease from both the 30.7% gross margin reported in the prior year.
Operating loss:
The consolidated operating loss was $11.2 million, which represents a $2.9 million increase in operating loss when compared to the same quarter last year.
Emcore says the quarter-over-quarter variance was primarily due to the change in litigation settlements totalling $4.1 million, an increase in non-cash stock-based compensation expense of $1.4 million, and an increase in research and development expense associated with the March 2011 Soliant Energy asset acquisition and our Fibre Optics segment.
Net loss:
The consolidated net loss was $11.1 million, which represents a $1.9 million increase in net loss when compared to the prior year. The consolidated net loss per share was $0.12, which represents a $0.01 increase in net loss per share when compared to the prior year. During the third quarter ended June 30, 2011, Emcore recorded $0.3 million of non-operating expense related to its Suncore joint venture.
Order Backlog
As of June 30, 2011, Emcore has a consolidated order backlog of approximately $66.2 million, a 31% increase from the $50.5 million order backlog reported as of March 31, 2011. On a segment basis, the Photovoltaics order backlog totalled $39.6 million, a 50% increase from $26.4 million reported as of March 31, 2011. The Fibre Optics order backlog totalled $26.6 million, a 10% increase from $24.1 million reported as of March 31, 2011. The order backlog is defined as purchase orders or supply agreements accepted by the firm with expected product delivery and/or services to be performed within the next twelve months.
Balance Sheet Update
As of June 30, 2011, cash, cash equivalents, and restricted cash totalled approximately $21.1 million. In May 2011, Emcore completed a common stock private placement of $9.7 million. In June 2011, the company paid its remaining capital contribution obligation to its Suncore joint venture. Emcore says it is not required to contribute additional funds in excess of the initial $12 million investment, and at this time, it does not anticipate contributing any additional funds to Suncore.
Business Outlook
For the fourth quarter ending September 30, 2011, Emcore expects consolidated revenue to be $51 to $55 million.
Conference Call
Emcore hosted a conference call discussing its financial results for the quarter ended June 30, 2011 on August 3, 2011 and a webcast is now available on the firm’s website.
Investor Conferences
Management will present at the Morgan Keegan Technology Conference on Tuesday, August 9th at 4:25pm ET at the New York Palace Hotel and at the Citi Technology Conference on Thursday, September 8th at 1:35pm ET at the Hilton New York Hotel in New York City.
