EMCORE Corporation Announces Financial Results for First Quarter Ended December 31, 2012

EMCORE Corporation Announces Financial Results for First Quarter Ended
December 31, 2012

  *Consolidated revenue within the guidance range for Q1
  *Consolidated GAAP net income of $2.8 million
  *Anticipate Q2 revenue of $45 to $49 million

ALBUQUERQUE, N.M., Feb. 5, 2013 (GLOBE NEWSWIRE) -- EMCORE Corporation
(Nasdaq:EMKR), a leading provider of compound semiconductor-based components,
subsystems, and systems for the fiber optics and solar power markets, today
announced its financial results for its fiscal first quarter ended December
31, 2012.

Financial Results

Revenue:

Consolidated revenue for the first quarter ended December 31, 2012 was $49.3
million, which represents a 31.7% increase compared to the prior year and 3.8%
increase from the immediate preceding quarter. On a segment basis, revenue for
our Fiber Optics segment was $29.7 million, which represents a 62.1% increase
compared to the prior year and 1.4% decrease compared to the immediate
preceding quarter. Revenue for the Photovoltaics segment was $19.6 million,
which represents a 2.5% increase compared to the prior year and 12.8% increase
compared to the immediate preceding quarter.

Gross Profit:

Consolidated gross profit was approximately $10.9 million. Consolidated gross
margin was 22.2%, which represents an increase from the 9.3% gross margin
reported in the prior year and an increase from the 9.7% gross margin reported
in the immediate preceding quarter. On a segment basis, Fiber Optics gross
margin was 16.7%, which represents an increase from the negative 4.8% gross
margin reported in the prior year and an increase from the 2.4% gross margin
reported in the immediate preceding quarter. Photovoltaics gross margin was
30.5%, which represents an increase from the 22.7% gross margin reported in
the prior year and an increase from the 22.2% gross margin reported in the
immediate preceding quarter.

Operating Income (Loss):

The consolidated operating income was $2.8 million, which represents a $14.5
million improvement when compared to the prior year and a $9.1 million
improvement when compared to the immediate preceding quarter. The
quarter-over-quarter variance was primarily due to lower expenses associated
with the Company's realignment efforts previously announced and improved
results within the Company's business segments.

Net Income (Loss):

The consolidated net income was $2.8 million, which represents a $17.1 million
improvement when compared to the prior year and a $9.4 million improvement
when compared to the immediate preceding quarter. The consolidated net income
per share was $0.11 compared to a net loss per share of $0.61 in the prior
year and a net loss per share of $0.27 in the immediate preceding quarter.

Non-GAAP Net Income (Loss):

After excluding certain non-cash and other infrequent transactions as set
forth in the attached non-GAAP table, our non-GAAP net income for the first
quarter ended December 31, 2012 was $0.1 million, which represents an
improvement of approximately $7.5 million from that reported for the prior
year and approximately $6.4 million from the immediate preceding quarter. The
consolidated non-GAAP net income per share was $0.00, which represents an
increase from the $0.31 loss per share reported in the prior year and an
improvement from the $0.26 loss per share reported in the immediate preceding
quarter.

Order Backlog

As of December 31, 2012, order backlog for our Photovoltaics segment totaled
$35.3 million, which represents an 18% decrease from $43.3 million reported as
of September 30, 2012. The order backlog as of December 31, 2012 and September
30, 2012 included $3.4 million and $1.9 million, respectively, of terrestrial
solar cell orders from our Suncore joint venture. Order backlog is defined as
purchase orders or supply agreements accepted by us with expected product
delivery and/or services to be performed and deferred revenue expected to be
recognized within the next twelve months. Product sales from our Fiber Optics
segment are made pursuant to purchase orders, often with short lead times.

Business Outlook

On a consolidated basis, we expect revenue for our second quarter ended March
31, 2013 to be in the range of $45 to $49 million, which includes revenue from
our joint venture Suncore.

Conference Call

We will discuss our financial results today at 4:30 p.m. ET. The call will be
webcast via the Company's website at http://www.emcore.com. Please go to the
site beforehand to download any necessary software. A webcast will be
available for replay beginning February 5, 2013 following the conclusion of
the call on the Company's website.

Conferences

Management is expecting to present at the following conferences over the next
few months:

  o2013 Piper Jaffray Technology Conference in New York, March 12, 2013 at
    9:00 a.m. ET.
  o25^th Annual ROTH Conference scheduled for March 17-20, 2013 in Dana
    Point, CA.

In addition, EMCORE will be exhibiting and meeting with customers and industry
analysts at the 2013 Optical Fiber Communications Conference and Exposition
(OFC) at the Anaheim Convention Center, March 19-21 in booth #3411.

About EMCORE

EMCORE Corporation offers a broad portfolio of compound semiconductor-based
products for the fiber optics and solar power markets. EMCORE's Fiber Optics
business segment provides optical components, subsystems and systems for
high-speed telecommunications, Cable Television (CATV) and
Fiber-To-The-Premise (FTTP) networks, as well as products for satellite
communications, video transport and specialty photonics technologies for
defense and homeland security applications. EMCORE's Solar Photovoltaics
business segment provides products for space power applications including
high-efficiency multi-junction solar cells, Covered Interconnect Cells (CICs)
and complete satellite solar panels. For further information about EMCORE,
visit http://www.emcore.com.

Use of Non-GAAP Financial Measures

We provide a non-GAAP net loss disclosure as a supplemental measure to U.S.
GAAP regarding our operational performance. This financial measure excludes
the impact of certain items; therefore, it has not been calculated in
accordance with U.S. GAAP.

We believe that this additional non-GAAP financial measure is useful to
investors in assessing our operating performance. We also use this financial
measure internally to evaluate our operating performance and for planning and
forecasting of future periods. In addition, financial analysts that follow us
may focus on and publish both historical results and future projections based
on our non-GAAP financial measure. We also believe that it is in the best
interest of our investors to provide this non-GAAP information.

While we believe that this non-GAAP financial measure provides useful
supplemental information to investors, there are limitations associated with
the use of this non-GAAP financial measure. Our non-GAAP financial measure may
not be reported by all of our competitors and it may not be directly
comparable to similarly titled measures of other companies due to potential
differences in calculation. We compensate for these limitations by using this
non-GAAP financial measure as a supplement to U.S. GAAP and by providing a
reconciliation of our non-GAAP financial measure to its most comparable U.S.
GAAP financial measure.

Non-GAAP financial measures are not in accordance with or an alternative for
U.S. GAAP. Our non-GAAP financial measure is not meant to be considered in
isolation or as a substitute for comparable U.S. GAAP financial measures and
it should be read only in conjunction with our consolidated financial
statements prepared in accordance with U.S. GAAP.

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 Exchange Act of 1934. These forward-looking statements are largely based
on our current expectations and projections about future events and financial
trends affecting the financial condition of our business. Such forward-looking
statements include, in particular, projections about our future results
included in our Exchange Act reports, statements about our plans, strategies,
business prospects, changes and trends in our business and the markets in
which we operate.

These forward-looking statements may be identified by the use of terms and
phrases such as "anticipates," "believes," "can," "could," "estimates,"
"expects," "forecasts," "intends," "may," "plans," "projects," "targets,"
"will," and similar expressions or variations of these terms and similar
phrases. Additionally, statements concerning future matters such as the
development of new products, enhancements or technologies, sales levels,
expense levels and other statements regarding matters that are not historical
are forward-looking statements. We caution that these forward-looking
statements relate to future events or our future financial performance and are
subject to business, economic, and other risks and uncertainties, both known
and unknown, that may cause actual results, levels of activity, performance or
achievements of our business or our industry to be materially different from
those expressed or implied by any forward-looking statements.

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) the impact on the Company, our
customers and our suppliers from the effects of the floods in Thailand; (b)
the impact on the Company related to the asset sale transactions with Sumitomo
and Suncore; (c) delays and other difficulties in commercializing new
products; (d) the failure of new 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; (e) we may not
be successful in undertaking the steps currently planned in order to increase
our liquidity; (f) uncertainties concerning the extent of our insurance
recovery from damage to our contract manufacturer's facilities and the
Company's and our contract manufacturer's equipment; uncertainties concerning
the availability and cost of commodity materials and specialized product
components that we do not make internally; actions by competitors; and (g)
other risks and uncertainties described in our filings with the Securities and
Exchange Commission ("SEC") 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.

Neither management nor any other person assumes responsibility for the
accuracy and completeness of the forward-looking statements. All
forward-looking statements in this press release are made as of the date
hereof, based on information available to us as of the date hereof, and
subsequent facts or circumstances may contradict, obviate, undermine, or
otherwise fail to support or substantiate such statements. We caution you not
to rely on these statements without also considering the risks and
uncertainties associated with these statements and our business that are
addressed in our filings with the SEC that are available on the SEC's web site
located at www.sec.gov, including the sections entitled "Risk Factors" in our
Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Certain
information included in this press release may supersede or supplement
forward-looking statements in our other Exchange Act reports filed with the
SEC. We assume no obligation to update any forward-looking statement to
conform such statements to actual results or to changes in our expectations,
except as required by applicable law or regulation.

                                                                
                                                                
EMCORE CORPORATION
Condensed Consolidated Statements of Operations
(in thousands, except income (loss) per share)
(unaudited)
                                                                
                                             For the Three Months Ended
                                             December  September  December
                                              31, 2012  30, 2012   31, 2011
Revenue                                       $49,306 $47,488  $37,451
Cost of revenue                               38,358    42,891     33,983
Gross profit                                  10,948    4,597      3,468
                                                                
Operating expense (income):                                      
Selling, general, and administrative          6,904     10,258     7,480
Research and development                      5,390     4,581      6,980
Flood-related loss                            —         —          5,698
Flood-related insurance proceeds              (4,192)   (4,000)    (5,000)
Loss on sale of assets                        —         51         —
Total operating expense                       8,102     10,890     15,158
                                                                
Operating income (loss)                       2,846     (6,293)    (11,690)
                                                                
Other income (expense):                                          
Interest expense, net                         (238)     (281)      (129)
Foreign exchange gain (loss)                  101       (15)       89
Loss from equity method investment            —         —          (960)
Change in fair value of financial instruments 237       21         105
Total other income (expense)                  100       (275)      (895)
                                                                
Income (Loss) before income tax expense       2,946     (6,568)    (12,585)
                                                                
Income tax expense                            120       —          —
                                                                
Foreign income tax expense on capital         —         —          1,644
distributions
                                                                
Net income (loss)                             $2,826  $(6,568) $(14,229)
                                                                
Per share data:                                                  
Net income (loss) per basic share             $0.11   $(0.27)  $(0.61)
Net income (loss) per diluted share           $0.11   $(0.27)  $(0.61)
                                                                
Weighted-average number of basic shares       25,977    23,892     23,476
outstanding
                                                                
Weighted-average number of diluted shares     26,236    23,892     23,476
outstanding

                                                          
                                                          
EMCORE CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                          
                                              As of        As of
                                              December31, September30,
                                               2012         2012
ASSETS                                                     
Current assets:                                            
Cash and cash equivalents                      $11,883    $9,047
Restricted cash                                1,027        82
Accounts receivable, net                       36,786       36,939
Inventory                                      37,001       35,192
Prepaid expenses and other current assets      11,089       14,146
                                                          
Total current assets                           97,786       95,406
                                                          
Property, plant, and equipment, net            48,374       47,896
Goodwill                                       20,384       20,384
Other intangible assets, net                   3,111        3,428
Equity method investment                       —            —
Other non-current assets, net                  2,607        2,752
                                                          
Total assets                                   $172,262   $169,866
                                                          
LIABILITIES and SHAREHOLDERS' EQUITY                       
Current liabilities:                                       
Borrowings from credit facility                $19,928    $19,316
Accounts payable                               30,213       38,814
Warrant liability                              433          670
Accrued expenses and other current liabilities 29,842       32,635
                                                          
Total current liabilities                      80,416       91,435
                                                          
Asset retirement obligations                   5,058        5,004
Deferred gain associated with sale of assets   3,400        3,400
Other long-term liabilities                    963          1,004
                                                          
Total liabilities                              89,837       100,843
                                                          
Shareholders' equity:                                      
Common stock                                   732,852      722,345
Treasury stock                                 (2,071)      (2,071)
Accumulated other comprehensive income         1,445        1,376
Accumulated deficit                            (649,801)    (652,627)
                                                          
Total shareholders' equity                     82,425       69,023
                                                          
Total liabilities and shareholders' equity     $172,262   $169,866

We have provided a reconciliation of our non–GAAP operating loss financial
measure to its most directly comparable U.S. GAAP financial measure as
indicated in the table below:

                                                                
                                                                
EMCORE CORPORATION
Non-GAAP Net Income (Loss)
(in thousands, except per share data)
(unaudited)
                                                                
                                              For the Three Months Ended
                                              December September  December
                                               31, 2012 30, 2012   31, 2011
Net income (loss) - US GAAP                    $2,826 $(6,568) $(14,229)
Adjustments:                                                     
Amortization expense                           317      317        465
Stock-based compensation expense               1,082    1,760      2,180
Asset retirement obligations - accretion       54       53         51
expense
Specific severance charges                     —        1,090      —
Flood-related loss                             —        —          5,698
Flood-related insurance proceeds               (4,192)  (4,000)    (5,000)
Loss on sale of assets                         —        51         —
Losses on inventory purchase commitments       —        723        908
Foreign exchange (gain) loss                   (101)    15         (89)
Loss from equity method investment             —        —          960
Change in fair value of financial instruments  (237)    (21)       (105)
Interest expense, net                          238      281        129
Income tax expense                             120      —          —
Foreign income tax expense on capital          —        —          1,644
distributions
                                                                
Total adjustments                              (2,719)  269        6,841
                                                                
Net income (loss) - Non-GAAP                   $107   $(6,299) $(7,388)
                                                                
Net income (loss) - Non-GAAP per basic share   $0.00    $(0.26)  $(0.31)
                                                                
Net income (loss) - Non-GAAP per diluted share $0.00    $(0.26)  $(0.31)
                                                                
Weighted average number of basic shares        25,977   23,892     23,476
outstanding
                                                                
Weighted average number of diluted shares      26,236   23,892     23,476
outstanding

                                                                  
                                                                  
EMCORE Corporation
Stock-based Compensation Expense
(in thousands, except per share data)
(unaudited)
                                                                  
                                                For the Three Months Ended
                                                December  September December
                                                 31, 2012  30, 2012  31, 2011
Cost of revenue                                  $315    $278    $476
Selling, general, and administrative             382       935       1,013
Research and development                         385       547       691
Total stock-based compensation expense           $1,082  $1,760  $2,180
                                                                  
Net effect on net income (loss) per basic and    $(0.04) $(0.07) $(0.09)
diluted share

CONTACT: Mark Weinswig
         Chief Financial Officer
         (505) 332-5000
         investor@emcore.com
        
         TTC Group
         Victor Allgeier
         (646) 290-6400
         vic@ttcominc.com
 
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