ALBUQUERQUE, N.M., Aug. 7 /PRNewswire-FirstCall/ -- EMCORE Corporation
(Nasdaq: EMKR), a leading provider of compound semiconductor-based components
and subsystems for the broadband, fiber optic, satellite, and terrestrial
solar power markets, today announced preliminary unaudited financial results
for its third quarter ended June 30, 2008.
Consolidated revenue for the quarter ended June 30, 2008 totaled $75.5
million. This represents an increase in revenue of approximately 70% when
compared $44.4 million of revenue as reported in the same period last year.
Quarterly revenue increased 34% sequentially when to compared to the immediate
prior quarter. Consolidated revenue for the nine months ended June 30, 2008
totaled $178.7 million, which represents an increase of 46% when compared to
$122.6 million of revenue as reported in the same period last year. Both of
the Company's operating segments experienced increases in quarterly revenue
when compared to the prior year and the prior quarter.
For the three months ended June 30, 2008, revenue from the Company's Fiber
Optics segment increased by $26.0 million, or 94%, to $53.6 million from $27.6
million, as reported in the same period last year. For the nine months ended
June 30, 2008, Fiber Optics revenue increased by $46.0 million, or 58%, to
$125.2 million from $79.2 million, as reported in the same period last year.
Compared to the immediate prior quarter, Fiber Optics revenue increased by
$16.0 million, or 43%. The increase in Fiber Optics revenue was primarily due
to increased demand for the Company's parallel optical transceivers and our
recent acquisition of Intel's Optical Platform Division. Demand for the
Company's legacy datacom products continued to strengthen throughout the
quarter increasing 144% and 46% on a year-over-year and sequential quarterly
basis, respectively.
Photovoltaics revenue for the three months ended June 30, 2008 increased
$5.1 million, or 30%, to $21.9 million from $16.8 million as reported in the
same period last year. For the nine months ended June 30, 2008, Photovoltaics
revenue increased by $10.0 million, or 23%, to $53.5 million from $43.5
million, as reported in the same period last year. Compared to the immediate
prior quarter, Photovoltaics revenue increased by $3.3 million, or 18%. The
increase in sequential quarterly revenue was due primarily to the Company's
introduction of new concentrator photovoltaics (CPV) products for commercial
and utility scale applications. Satellite-related revenues declined on a
sequential quarterly basis as previously forecast.
Consolidated gross margin for the quarter ended June 30, 2008 improved to
18% compared with 12% as reported in the immediate prior quarter. Quarterly
gross margin decreased when compared to 22% reported in the same period last
year. Consolidated gross margin for the nine months ended June 30, 2008 was
17%, which represents a decrease from 18% reported in the same period last
year.
Fiber Optics gross margins were 27% and 25% for the three and nine months
ended June 30, 2008, respectively. This represents an increase in gross
margin from 22% as reported for the three months ended June 30, 2007 and an
increase in gross margin from 19% as reported for the nine months ended June
30, 2007. Fiber Optics gross margin also increased sequentially from the 24%
reported in the prior quarter. The increase in Fiber Optics gross margins was
primarily due to increased revenue, benefits associated with the ramp-up in
our China manufacturing operations, implementation of certain cost reduction
initiatives, and improved efficiencies driven by facility consolidation. On a
pro forma basis, net of non-recurring Intel transition service agreement (TSA)
charges, Fiber Optics was net income positive.
Photovoltaics gross margins were negative 3% and negative 2% for the three
and nine months ended June 30, 2008, respectively. This represents a decrease
in gross margin from 22% as reported for the three months ended June 30, 2007
and a decrease in gross margin from 17% as reported for the nine months ended
June 30, 2007. However, Photovoltaics gross margin improved on a sequential
basis from negative 12% reported in the second fiscal quarter. In the quarter
ended June 30, 2008, our Photovoltaics division increased manufacturing
capacity for its CPV components; however, equipment uptime was below plan,
consequently, production volume in the quarter was not sufficient to
completely absorb the additional overhead costs associated with the new CPV
receiver lines placed into service. Also, during the quarter, the Company
recorded losses on CPV system projects of approximately $1.8 million primarily
due to higher than standard freight and installation costs.
Operating expenses for the three and nine months ended June 30, 2008
totaled $25.3 million and $64.2 million, respectively. This represents an
increase in operating expenses when compared to the prior year and the prior
quarter. For the three and nine months ended June 30, 2007, operating
expenses totaled $23.2 million and $63.0 million, respectively. During the
quarter ended June 30, 2008, the Company incurred over $7.2 million in
additional operating expenses associated with the acquisition of Intel's
Optical Platform division, of which $3.2 million related to transitional
services being provided by Intel. The Company expects Intel's transitional
services expense to decrease by approximately 50% during the current quarter
and to terminate by September 30, 2008.
Operating loss for the three and nine month periods ended June 30, 2008
totaled $11.6 million and $33.8 million, respectively, which represents a
significant decrease in operating loss when compared to the prior year quarter
and the prior year losses of $13.5 million and $40.8 million, respectively.
Excluding Intel TSA charges, operating loss for the quarter totaled $8.4
million.
For the three and nine month periods ended June 30, 2008, net loss totaled
$7.7 million, or $0.10 loss per share, and $39.6 million, or $0.62 loss per
share, respectively. This represents a significant decrease in net loss when
compared to the prior year and the immediate prior quarter. Excluding Intel
TSA charges and stock-based compensation expense, net loss for the quarter
totaled approximately $2.8 million, or a loss of $0.04 per share.
As of June 30, 2008, the Company had an order backlog of approximately
$109 million which compares with the March 31, 2008 order backlog of
approximately $158 million. In July 2008, the Company was informed by its
customer Green & Gold Energy, which is based in Australia, that it was engaged
in negotiations relating to the sale of its business through an asset sale
and, as a result, could not commit to making any further purchases under its
approximately $79 million of CPV-related purchase orders. The acquirer has
indicated that they intend to negotiate a new purchase agreement with the
Company upon consummation of the transaction. As a result, the Company has
cancelled production slots reserved for Green & Gold Energy to reflect this
event and has adjusted the quarter-end backlog accordingly. As of June 30,
2008, total CPV-related backlog totaled $53 million.
At June 30, 2008, cash, cash equivalents, long-term investments and
restricted cash totaled approximately $23.5 million, a decrease of $7.0
million from the prior quarter. The majority of the quarterly cash usage
related to capital expenditures for our Photovoltaics division, payment of
Intel's acquisition-related transition service charges and an investment in
Lightron Fiber-Optics Devices, Inc., a contract manufacturer based in South
Korea. In June 2008, the Company announced that it had agreed to sell 2
million shares of Series D Preferred Stock of WorldWater and Solar
Technologies Corporation, together with 200,000 Warrants, to The Quercus
Trust, a major shareholder of both EMCORE and WorldWater, at a price equal to
$6.54 per share of the Series D Preferred Stock. The sale took place through
two closings, one for one million shares and 100,000 warrants, which closed on
Friday, June 27, 2008, and one for an equal number of shares and warrants
which closed on July 21, 2008. Cash proceeds from the sale totaled $13.1
million. The July 2008 transaction will be reflected in the Company's
September quarter-end results.
Management Discussion and Outlook:
"We are pleased to have achieved improved operating results in the
Company's Fiber Optics divisions, achieving positive earnings, net of
non-recurring acquisition-related expenses, as originally forecasted. Our
Fiber Optics divisions have a very robust new product pipeline with a number
of high growth opportunities and we look forward to continued improvement in
the division's operating performance over the next few quarters. In
Photovoltaics, while we experienced a decrease in demand for the June quarter,
we expect a rebound in satellite-related revenues over the next few quarters.
In our CPV-related business, although we were adversely affected by the delay
in installation of our CPV receiver manufacturing line, the Company still
achieved a significant revenue improvement in its terrestrial CPV product
lines. Demand continues to be significant as the Company continues to sign
long-term CPV-related supply agreements with a much more diverse customer base
for both land-based and commercial rooftop applications across different
geographic markets. While there is some uncertainty of incentives and
subsidies in some of our end solar power markets, we are seeing increased
market acceptance and continued growth in our terrestrial CPV business. We
are committed to achieving profitability and expect continued progress toward
that goal in the following quarter," stated Dr. Hong Q. Hou, Chief Executive
Officer.
Company & Quarterly Highlights:
April 2, 2008 -- The Company announced that it had been awarded a $4.6
million follow-on production order for solar cell receiver assemblies from
Concentration Solar la Mancha of Manzanares (Ciudad Real), Spain. The
receivers will be incorporated into CS la Mancha's 500X CPV system and will be
deployed throughout Spain and other locations in fully licensed and funded
projects. Shipments are scheduled to commence in the September quarter.
April 10, 2008 -- The Company announced that it agreed to supply CPV
systems to XinAo Group in China. XinAo Group is one of China's largest energy
companies and is well known for its clean-energy technologies. The program
will start with the delivery of a 50 kilowatt (kW) CPV system, which was
shipped in June 2008, to be installed in Langfang, China in August 2008. This
system will be used for test and evaluation purposes. Once the expected
reliability and performance metrics have been demonstrated, XinAo plans to
install CPV systems to provide electric power for its innovative coal
gasification project, which is estimated to have a requirement of 60 megawatts
(MW) of power. XinAo believes that EMCORE's CPV technology will provide a
cost-effective solution for its energy needs. In addition, XinAo intends to
build a manufacturing plant in China, jointly owned by EMCORE, to manufacture
CPV systems designed and certified by EMCORE for the Chinese market.
April 21, 2008 -- The Company announced completion of the acquisition of
the enterprise and storage assets of Intel's Optical Platform Division (OPD)
and the Intel Connects Cable (ICC) business for high-performance computing
under the terms signed and announced previously. The assets include
intellectual property, inventory, fixed assets and technology relating to
XENPAK, X2, SFP, and SFP+ optical transceivers for enterprise and storage
customers, as well as the Intel Connects Cables (ICC) active cable
interconnects for high-performance computing clusters. This acquisition will
further enhance EMCORE's presence in the local area and storage area network
market segments. These assets, along with the Telecom assets acquired in
February 2008 from Intel OPD, make EMCORE one of the major companies in the
world with the most comprehensive product portfolio, vertically-integrated
capability and infrastructure, and strong commitment to Telecom, Datacom, and
Broadband fiber optics businesses. The acquired assets are being integrated
into the EMCORE Digital Products (EDP) division.
May 5, 2008 -- The Company announced that it has entered into a $28
million definitive supply agreement with ES System of Gwang-Ju, South Korea,
for solar cell receivers to be fielded in fully licensed and funded solar
farms in South Korea. This agreement incorporates an advance deposit to
ensure production priority, and will enable the installation of 70 megawatts
(MW) of solar farms. Production for this order has commenced and shipments
are scheduled to occur over the next 24 months with the provisions for
accelerated deliveries as well as future purchase options under the same
terms.
July 9, 2008 -- The Company announced that it entered into two definitive
supply agreements for solar cell receivers in June 2008 with a total value of
approximately $29 million. These supply agreements incorporate advance
deposits to ensure production priority for these customers. The end
applications for the product to be delivered range from solar farm to
commercial rooftop installations employing CPV technology. Production for
these orders has commenced and shipments are scheduled to occur over the next
24 months.
July 25, 2008 -- The Company announced that its world record Inverted
Metamorphic (IMM) solar cell technology has been chosen by R&D Magazine for an
R&D 100 award. This prestigious award recognizes the IMM solar cell as one of
the most innovative technologies of 2008. Developed in conjunction with the
National Renewable Energy Laboratory (NREL) and the Vehicle Systems
Directorate of the US Air Force Research Laboratory (AFRL), this revolutionary
solar cell technology provides a platform for EMCORE's next generation
photovoltaic products for space and terrestrial solar power applications.
Solar cells built using IMM technology recently achieved world record
conversion efficiency of 33% used in space, and it is anticipated that
efficiency levels in the 42%-45% range will be achieved when adapted for use
under the 500-1500X concentrated illumination, typical in terrestrial CPV
systems. Once commercialized, the CPV systems that are powered with EMCORE's
IMM based products will see a reduction in the cost of power generated by
approximately 10% to 20%. EMCORE expects to commercialize this technology for
both space and terrestrial applications in 2009.
August 5, 2008 -- The Company announced that it entered into two new
supply agreements for solar cells and receivers with a total value of over $40
million. The larger of the two purchase contracts is a multi-year supply
agreement for solar cells, to be delivered over four years. The product to be
delivered will be incorporated into concentrating photovoltaics (CPV) systems
developed for commercial rooftop installations as well as utility-scale solar
farms. The customers placing these orders are targeting CPV deployments in
the United States with a particular focus on the California market.
Production for these orders has commenced and approximately $1 million of
product is expected to be shipped in the present quarter.
***
EMCORE will discuss its quarterly results on a conference call to be held
on Friday, August 8, 2008 at 9:00 am ET. To participate in the conference
call, U.S. callers should dial (toll free) 866-710-0179 and international
callers should dial 334-323-9871. The access code for the call is 57996. A
replay of the call will be available beginning August 8, 2008 at 12:00 p.m. ET
until August 15, 2008 at 11:59 p.m. ET. The replay call-in number for U.S.
callers is 877-656-8905, for international callers it is 334-323-9859 and the
access code is 51102591. The call also will be web cast via the Company's web
site at http://www.emcore.com. Please go to the site beforehand to download
any necessary software.
About EMCORE:
EMCORE Corporation is a leading provider of compound semiconductor-based
components and subsystems for the broadband, fiber optic, satellite and solar
power markets. EMCORE's Fiber Optics segment offers optical components,
subsystems and systems that enable the transmission of video, voice and data
over high-capacity fiber optic cables for high-speed data and
telecommunications, cable television (CATV) and fiber-to-the-premises (FTTP)
networks. EMCORE's Solar Power segment provides solar products for satellite
and terrestrial applications. For satellite applications, EMCORE offers
high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar
cells, covered interconnect cells and fully integrated solar panels. For
terrestrial applications, EMCORE offers concentrating photovoltaic (CPV)
systems for utility scale solar applications as well as offering its
high-efficiency GaAs solar cells and CPV components for use in solar power
concentrator systems. For specific information about our company, our
products or the markets we serve, please visit our website at
http://www.emcore.com.
Forward-looking statements:
The information provided herein may include forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 relating to future events that
involve risks and uncertainties. Such forward-looking statements include but
are not limited to words such as "expects," "anticipates," "intends," "plans,"
believes," and "estimates," and variations of these words and similar
expressions, identify these forward-looking statements. These forward-looking
statements also include, without limitation, (a) any statements or
implications regarding EMCORE's ability to remain competitive and a leader in
its industry, and the future growth of EMCORE, or the industry and the economy
in general; (b) statements regarding the expected level and timing of benefits
to EMCORE from its current cost reduction efforts, including (i) expected cost
reductions and their impact on EMCORE's financial performance, (ii) EMCORE's
ability to reduce operating expenses associated with its recent acquisitions
(iii) EMCORE's continued leadership in technology and manufacturing in its
markets, and (iv) the belief that the cost reduction efforts will not impact
product development or manufacturing execution; (c) any statement or
implication that the products described in this press release (i) will be
successfully introduced or marketed, (ii) will be qualified and purchased by
our customers, or (iii) will perform to any particular specifications or
performance or reliability standards; (d) any and all guidance provided by
EMCORE regarding its expected financial performance in future periods,
including, without limitation, with respect to anticipated revenues for the
fourth quarter of fiscal 2008 or expected revenues from recent and anticipated
acquisitions. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those
projected, including without limitation, the following: (a) EMCORE's cost
reduction efforts may not be successful in achieving their expected benefits,
(including, among other things, cost structure, gross margin and other
profitability improvements), due to, among other things, shifts in product
mix, selling price pressures, costs and delays related to product transfers to
lower cost manufacturing locations and associated facility closures,
integration difficulties, and execution concerns; (b) EMCORE may encounter
difficulties in integrating its recent acquisitions and as a result may
sustain increased operating expenses, delays in commercializing new products,
production difficulties associated with transferring products to EMCORE's
manufacturing facilities and disruption of customer relationships (c) the
failure of the products (i) to perform as expected without material defects,
(ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be
qualified and accepted by our customers, and, (iv) to successfully compete
with products offered by our competitors and (d) other risks and uncertainties
described in EMCORE's filings with the Securities and Exchange Commission such
as cancellations, rescheduling or delays in product shipments; manufacturing
capacity constraints; lengthy sales and qualification cycles; difficulties in
the production process; changes in semiconductor industry growth; increased
competition; delays in developing and commercializing new products; and other
factors. The forward-looking statements contained in this news release are
made as of the date hereof and EMCORE does not assume any obligation to update
the reasons why actual results could differ materially from those projected in
the forward-looking statements.
Contacts:
EMCORE Corporation
Adam Gushard
Interim Chief Financial Officer
(505) 332-5000
info@emcore.com
TTC Group
Victor Allgeier
(646) 290-6400
info@ttcominc.com
EMCORE CORPORATION
Condensed Consolidated Statements of Operations
For the three and six month periods ended June 30, 2008 and 2007
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenue $75,502 $44,428 $178,668 $122,622
Cost of revenue 61,856 34,723 148,271 100,452
Gross profit 13,646 9,705 30,397 22,170
Operating expenses:
Selling, general, and
administrative 13,906 15,516 36,032 41,198
Research and development 11,382 7,668 28,132 21,807
Total operating expenses 25,288 23,184 64,164 63,005
Operating loss (11,642) (13,479) (33,767) (40,835)
Other expense (income):
Interest income (124) (723) (778) (3,543)
Interest expense - 1,254 1,580 3,776
Loss from conversion of
subordinated notes - - 4,658 -
Loss from early redemption of
convertible subordinated
notes - 561 - 561
Stock-based compensation
expense related to tolled
options - - 4,316
Gain from insurance
proceeds - - - (357)
Gain from sale of investment (3,692) - (3,692) -
Loss on disposal of equipment - - 86 -
Foreign exchange gain (104) (12) (302) (12)
Total other expense
(income) (3,920) 1,080 5,868 425
Net loss $(7,722) $(14,559) $(39,635) $(41,260)
Per share data:
Basic and diluted per share
data:
Net loss $(0.10) $(0.29) $(0.62) $(0.81)
Weighted-average number of
basic and diluted shares
outstanding 76,582 51,043 64,155 50,974
EMCORE CORPORATION
Condensed Consolidated Balance Sheets
As of June 30, 2008 and September 30, 2007
(in thousands)
(unaudited)
As of As of
June 30, Sept. 30,
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $18,183 $12,151
Restricted cash 1,869 1,538
Short-term investments - 29,075
Accounts receivable, net 68,157 38,151
Receivable, related party 287 332
Income tax receivable 130 -
Inventory, net 50,066 29,205
Prepaid expenses and other current assets 6,032 4,350
Total current assets 144,724 114,802
Property, plant, and equipment, net 84,938 57,257
Goodwill 76,850 40,990
Other intangible assets, net 28,570 5,275
Investments in unconsolidated affiliates 13,527 14,872
Long-term investments and restricted cash 3,472 -
Other non-current assets, net 654 1,540
Total assets $352,735 $234,736
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $36,751 $22,685
Accrued expenses and other current
liabilities 24,670 28,776
Income tax payable 594 137
Total current liabilities 62,015 51,598
Convertible subordinated notes - 84,981
Total liabilities 62,015 136,579
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.0001 par, 5,882 shares
authorized, no shares outstanding - -
Common stock, no par value, 200,000 shares
authorized, 77,672 shares issued and
77,513 outstanding at June 30, 2008;
51,208 shares issued and 51,049 shares
outstanding at September 30, 2007 676,354 443,835
Accumulated deficit (383,539) (343,578)
Accumulated other comprehensive loss (12) (17)
Treasury stock, at cost; 159 shares (2,083) (2,083)
Total shareholders' equity 290,720 98,157
Total liabilities and shareholders'
equity $352,735 $234,736
Use of Non-GAAP Measures
EMCORE provides non-GAAP operating expenses, non-GAAP operating loss, and
non-GAAP net loss as supplemental measures to GAAP regarding our operational
performance. These financial measures exclude the impact of certain items
and, therefore, have not been calculated in accordance with GAAP. A detailed
explanation of each of the adjustments to such financial measures is described
below. This press release also contains a reconciliation of each of these
non-GAAP financial measures to its most comparable GAAP financial measure.
EMCORE believes that the additional non-GAAP measures are useful to
investors for financial analysis. In particular, management believes it is
appropriate in evaluating EMCORE's operations to exclude gains or losses from
one-time items such as patent litigation-related charges, charges associated
with our review of historical stock option grants and severance and
restructuring-related expenses because these items would make results less
comparable between periods. Management believes adjusting for stock-based
compensation expense is appropriate, as it is a non-cash expense, and
adjusting is consistent with the practice of most of our competitors.
Management also uses these measures internally to evaluate the company's
operating performance, and the measures are used for planning and forecasting
of future periods. In addition, many financial analysts that follow our
Company focus on and publish both historical results and future projections
based on non-GAAP financial measures. We believe that it is in the best
interest of our investors to provide this information to analysts so that they
accurately report the non-GAAP financial information. However, non-GAAP
measures are not in accordance with, nor are they a substitute for, GAAP
measures.
While management believes that these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations associated
with the use of these non-GAAP financial measures. These non-GAAP financial
measures are not prepared in accordance with GAAP, may not be reported by all
of the Company's competitors and may not be directly comparable to similarly
titled measures of the Company's competitors due to potential differences in
the exact method of calculation. The Company compensates for these
limitations by using these non-GAAP financial measures as supplements to GAAP
financial measures and by reviewing the reconciliations of the non-GAAP
financial measures to their most comparable GAAP financial measures.
Non-GAAP financial measures are not in accordance with, or an alternative
for, generally accepted accounting principles in the United States. The
Company's non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial measures, and
should be read only in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP.
Pursuant to the requirements of Regulation G, the Company has provided a
reconciliation of the non-GAAP financial measures to the most directly
comparable GAAP financial measures as indicated in the tables listed below:
EMCORE CORPORATION
Non -GAAP Table
Net Loss from recurring
operations
Unaudited Three Months Ended Nine Months Ended
(in thousands) June 30, June 30,
2008 2007 2008 2007
Net loss - as reported $(7,722) $(14,559) $(39,635) $(41,260)
Adjusted Expenses:
Intel TSA non-recurring
charges 3,193 - 4,138 -
Stock-based compensation
expense 1,741 1,130 4,389 4,800
Net loss - Non-GAAP $(2,788) $(13429) $(31,108) $(36,460)
Net loss per basic and diluted
share - Non-GAAP $(0.04) $(0.26) $(0.48) $(0.72)
EMCORE CORPORATION
Non -GAAP Table
Operating Expenses from
recurring operations
Unaudited Three Months Ended Nine Months Ended
(in thousands) June 30, June 30,
2008 2007 2008 2007
Operating expenses - as reported $25,288 $23,184 $64,164 $63,005
Adjusted Expenses:
Severance and restructuring-
related charges (12) (1,305) (415) (2,284)
Stock option restatement-
related (expense) benefit (91) (3,790) 166 (7,912)
Non-recurring legal expense (57) (1,878) (1,208) (4,237)
Intel TSA non-recurring charges (3,193) - (4,138) -
Stock-based compensation
expense (1,459) (838) (3,647) (3,831)
Operating expenses - Non-GAAP $20,476 $15,373 $54,922 $44,741
EMCORE CORPORATION
Non -GAAP Table
Operating Loss from recurring
operations
Unaudited Three Months Ended Nine Months Ended
(in thousands) June 30, June 30,
2008 2007 2008 2007
Operating loss - as reported $(11,642) $(13,479) $(33,767) $(40,835)
Adjusted Expenses:
Severance and restructuring-
related charges 12 1,305 415 2,284
Stock option restatement-
related expense (benefit) 91 3,790 (166) 7,912
Non-recurring legal expense 57 1,878 1,208 4,237
Intel TSA non-recurring charges 3,193 - 4,138 -
Stock-based compensation
expense 1,741 1,130 4,389 4,800
Operating loss - Non-GAAP $(6,548) $(5,376) $(23,783) $(21,602)
Operating loss per basic and
diluted share - Non-GAAP $(0.09) $(0.11) $(0.37) $(0.42)
EMCORE CORPORATION
Non -GAAP Table
Net Loss from recurring
operations
Unaudited Three Months Ended Nine Months Ended
(in thousands) June 30, June 30,
2008 2007 2008 2007
Net loss - as reported $(7,722) $(14,559) $(39,635) $(41,260)
Adjusted Expenses:
Severance and restructuring-
related charges 12 1,305 415 2,284
Stock option restatement-
related expense (benefit) 91 3,790 (166) 7,912
Non-recurring legal expense 57 1,878 1,208 4,237
Intel TSA non-recurring
charges 3,193 - 4,138 -
Stock-based compensation
expense 1,741 1,130 4,389 4,800
Loss from conversion
of subordinated notes - - 4,658 -
Gain on sale of investment (3,692) - (3,692) -
Stock-based compensation
expense from tolled options - - 4,316 -
Net loss - Non-GAAP $(6,320) $(6,456) $(24,369) $(22,027)
Net loss per basic and
diluted share - Non-GAAP $(0.08) $(0.13) $(0.38) $(0.43)
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