News Article
Emcore restructures to improve efficiency and profitability
With the reorganisation, the company aims to make up for losses of $15 million in the past year
Emcore Corporation has completed both a business and a management realignment in a company-wide restructuring that changes the Company's corporate business and management structure.
In May 2012, Emcore closed the sale of its Enterprise product lines to Sumitomo Electric Device Innovations USA. It was announced earlier this week that the company also signed a definitive agreement to consolidate Emcore's terrestrial Concentrator Photovoltaics (CPV) business into its joint venture, Suncore Photovoltaics.
These two transactions mark the completion of the company's business realignment and allow Emcore to more effectively focus its portfolio on areas where its technology and product solutions have strong differentiation in the marketplace. The losses from these product lines over the past four quarters were approximately $15 million.
"In this complex market environment, it is vital to focus our business scope on those areas with the highest potential for growth and profitability. I am very excited about our current business portfolio: a combination of solid sustaining businesses and the high growth areas with the most-sought-after technology in our industries,"says Reuben Richards Jr., Executive Chairman of the Company. "Emcore is determined to drive its business to achieve profitability."
As a part of this restructuring effort, Richards proposed to Emcore's Board of Directors to eliminate the position of Executive Chairman, and subsequently, he will retire from the Executive Chairman position at Emcore, effective September 30th, 2012. Richards will continue as Chairman of the Board where he will provide strategic guidance and governance oversight.
With Richards' retirement and Company's focused business scope and operations, Emcore will realign its management responsibilities accordingly.
Reuben Richards joined the Company in 1995 as Chief Operating Officer. He took over as President and Chief Executive Officer in 1996, and led the company to its initial public offering in 1997. In March of 2008, he assumed the role of Executive Chairman and Chairman of the Board to help facilitate the CEO succession and transition plan.
During his 17 year tenure as Emcore's top executive, Richards has led the transformation of the Emcore from a single-product start-up to a leader in compound semiconductor technology and applications. Throughout his leadership, Emcore pioneered high-throughput production platform equipment - MOCVD, magneto-resistive sensors, multi-junction solar cells, LEDs, epitaxial materials for high-speed electronic devices (HBTs and HEMTs), and semiconductor lasers - VCSELs and distributed feedback lasers (DFBs).
In this time, Emcore has developed leading technologies and product solutions for many compound semiconductor devices and applications Richards was also instrumental in establishing and then selling the Company's interest in the solid-state-lighting joint venture with GE, GELcore, defining the growth strategy and operational plans, and raising capital to execute firm's business plan.
"Reuben has provided exceptional leadership to Emcore over the past 17 years and has helped navigate the Company through a very dynamic and complex marketplace. I applaud his contributions to the compound semiconductor industry through his leadership of a very innovative company. He is unparalleled in his ability to perceive market opportunities, develop technologies and to lead the industry in those markets.
I would like to personally thank Reuben for his mentorship and leadership during this transition period and look forward to continuing working with him as Chairman of the Board to drive shareholder value," concludes Hong Hou, Emcore's President and CEO. "With this business restructuring and management realignment, I am very optimistic to attain the company's strategic mission and to significantly improve financial performance going forward."
In May 2012, Emcore closed the sale of its Enterprise product lines to Sumitomo Electric Device Innovations USA. It was announced earlier this week that the company also signed a definitive agreement to consolidate Emcore's terrestrial Concentrator Photovoltaics (CPV) business into its joint venture, Suncore Photovoltaics.
These two transactions mark the completion of the company's business realignment and allow Emcore to more effectively focus its portfolio on areas where its technology and product solutions have strong differentiation in the marketplace. The losses from these product lines over the past four quarters were approximately $15 million.
"In this complex market environment, it is vital to focus our business scope on those areas with the highest potential for growth and profitability. I am very excited about our current business portfolio: a combination of solid sustaining businesses and the high growth areas with the most-sought-after technology in our industries,"says Reuben Richards Jr., Executive Chairman of the Company. "Emcore is determined to drive its business to achieve profitability."
As a part of this restructuring effort, Richards proposed to Emcore's Board of Directors to eliminate the position of Executive Chairman, and subsequently, he will retire from the Executive Chairman position at Emcore, effective September 30th, 2012. Richards will continue as Chairman of the Board where he will provide strategic guidance and governance oversight.
With Richards' retirement and Company's focused business scope and operations, Emcore will realign its management responsibilities accordingly.
Reuben Richards joined the Company in 1995 as Chief Operating Officer. He took over as President and Chief Executive Officer in 1996, and led the company to its initial public offering in 1997. In March of 2008, he assumed the role of Executive Chairman and Chairman of the Board to help facilitate the CEO succession and transition plan.
During his 17 year tenure as Emcore's top executive, Richards has led the transformation of the Emcore from a single-product start-up to a leader in compound semiconductor technology and applications. Throughout his leadership, Emcore pioneered high-throughput production platform equipment - MOCVD, magneto-resistive sensors, multi-junction solar cells, LEDs, epitaxial materials for high-speed electronic devices (HBTs and HEMTs), and semiconductor lasers - VCSELs and distributed feedback lasers (DFBs).
In this time, Emcore has developed leading technologies and product solutions for many compound semiconductor devices and applications Richards was also instrumental in establishing and then selling the Company's interest in the solid-state-lighting joint venture with GE, GELcore, defining the growth strategy and operational plans, and raising capital to execute firm's business plan.
"Reuben has provided exceptional leadership to Emcore over the past 17 years and has helped navigate the Company through a very dynamic and complex marketplace. I applaud his contributions to the compound semiconductor industry through his leadership of a very innovative company. He is unparalleled in his ability to perceive market opportunities, develop technologies and to lead the industry in those markets.
I would like to personally thank Reuben for his mentorship and leadership during this transition period and look forward to continuing working with him as Chairman of the Board to drive shareholder value," concludes Hong Hou, Emcore's President and CEO. "With this business restructuring and management realignment, I am very optimistic to attain the company's strategic mission and to significantly improve financial performance going forward."
