EMCORE Corporation Announces Financial Results for Second Quarter Ended March 31, 2013

EMCORE Corporation Announces Financial Results for Second Quarter Ended March
31, 2013

  *Consolidated revenue of $42.3 million
  *Consolidated GAAP net income of $11.7 million
  *Anticipate Q3 revenue of $35 to $39 million

ALBUQUERQUE, N.M., May 9, 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 second quarter ended March 31,
2013.

Financial Results

Revenue:

Consolidated revenue for the second quarter ended March 31, 2013 was $42.3
million, which represents an 11.9% increase compared to the prior year and
14.3% decrease from the immediate preceding quarter. On a segment basis,
revenue for our Fiber Optics segment was $23.1 million, which represents a
5.4% increase compared to the prior year and 22.1% decrease compared to the
immediate preceding quarter. Revenue for the Photovoltaics segment was $19.1
million, which represents a 20.9% increase compared to the prior year and 2.5%
decrease compared to the immediate preceding quarter.

Gross Profit:

Consolidated gross profit was approximately $7.8 million. Consolidated gross
margin was 18.5%, which represents an increase from the 14.2% gross margin
reported in the prior year and a decrease from the 22.2% gross margin reported
in the immediate preceding quarter. On a segment basis, Fiber Optics gross
margin was 7.0%, which represents a decrease from the 9.4% gross margin
reported in the prior year and a decrease from the 16.7% gross margin reported
in the immediate preceding quarter. Photovoltaics gross margin was 32.5%,
which represents an increase from the 20.9% gross margin reported in the prior
year and an increase from the 30.5% gross margin reported in the immediate
preceding quarter. 

Operating Income (Loss):

The consolidated operating income was $12.2 million, which represents a $21.1
million improvement when compared to the prior year and a $9.3 million
improvement when compared to the immediate preceding quarter.The
quarter-over-quarter variance was primarily due to higher flood-related
insurance proceeds.

Net Income (Loss):

The consolidated net income was $11.7 million, which represents a $21.0
million improvement when compared to the prior year and an $8.9 million
improvement when compared to the immediate preceding quarter.The consolidated
net income per share was $0.44 compared to a net loss per share of $0.40 in
the prior year and net income per share of $0.11 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 March 31, 2013 was $0.0 million, which represents an improvement
of approximately $5.3 million from that reported for the prior year and a
deterioration of approximately $0.1 million from the immediate preceding
quarter.The consolidated non-GAAP net income per share was $0.00, which
represents an increase from the $0.22 loss per share reported in the prior
year and flat with the $0.00 income per share reported in the immediate
preceding quarter.

Order Backlog

As of March 31, 2013, order backlog for our Photovoltaics segment totaled
$36.5 million, which represents a 3% increase from $35.3 million reported as
of December 31, 2012.The order backlog as of March 31, 2013 and December 31,
2012 included $9.2 million and $3.4 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 third quarter ended June
30, 2013 to be in the range of $35 to $39 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 May 9, 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:

  *The 12th Annual JMP Securities Research Conference, May 13, 2013 at The
    Ritz-Carlton, San Francisco, CA.
  *B. Riley & Co. 14th Annual Investor Conference, May 21, 2013 at the Loews
    Santa Monica Beach Hotel, Santa Monica, CA.

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     For the Six Months Ended
                                                             
                      March 31, December  March 31,  March 31,   March 31,
                                 31,
                      2013      2012     2012       2013        2012
Revenue                $42,277 $49,306 $37,780  $91,583   $75,231
Cost of revenue        34,444    38,358    32,404     72,802      66,387
Gross profit           7,833     10,948    5,376      18,781      8,844
                                                             
Operating expense                                             
(income):
Selling, general, and  6,771     6,904     8,365      13,675      15,845
administrative
Research and           4,112     5,390     5,781      9,502       12,761
development
Litigation settlement  —         —         —          —           —
Flood-related losses   —         —         114        —           5,812
Flood-related          (14,808)  (4,192)   —          (19,000)    (5,000)
insurance proceeds
Gain on Sale of Assets (413)     —         —          (413)       —
Total operating        (4,338)   8,102     14,260     3,764       29,418
expense (income)
                                                             
Operating income       12,171    2,846     (8,884)    15,017      (20,574)
(loss)
                                                             
Other income                                                  
(expense):
Interest expense, net  (186)     (238)     (121)      (424)       (250)
Foreign exchange gain  (21)      101       167        80          256
(loss)
Loss from equity       —         —         (241)      —           (1,201)
method investment
Change in fair value
of financial           (267)     237       (256)      (30)        (151)
instruments
Total other income     (474)     100       (451)      (374)       (1,346)
(expense)
                                                             
Income (Loss) before   11,697    2,946     (9,335)    14,643      (21,920)
income tax expense
                                                             
Income tax expense     —         (120)     —          (120)       —
Foreign income tax
expense on capital     —         —         —          —           (1,644)
distributions
                                                             
Net income (loss)      $11,697 $2,826  $(9,335) $14,523   $(23,564)
                                                             
Per share data:                                               
                                                             
Net income (loss) per  $0.44   $0.11   $(0.40)  $0.55     $(1.00)
basic share
                                                             
Net income (loss) per  $0.44   $0.11   $(0.40)  $0.54     $(1.00)
diluted share
                                                             
Weighted-average
number of basic shares 26,310    25,977    23,529     26,142      23,577
outstanding
Weighted-average
number of diluted      26,642    26,236    23,529     26,432      23,577
shares outstanding


EMCORE CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                              As of      As of
                                              March31,  September30,
                                              2013       2012
ASSETS                                                   
Current assets:                                          
Cash and cash equivalents                      $5,922   $9,047
Restricted cash                                330        82
Accounts receivable, net                       39,537     36,939
Inventory                                      35,604     35,192
Prepaid expenses and other current assets      19,350     14,146
                                                        
Total current assets                           100,743    95,406
                                                        
Property, plant, and equipment, net            50,461     47,896
Goodwill                                       20,384     20,384
Other intangible assets, net                   2,793      3,428
Other non-current assets, net                  3,206      —
                                                        
Total assets                                   $177,587 $169,866
                                                        
LIABILITIES and SHAREHOLDERS' EQUITY                     
Current liabilities:                                     
Borrowings from credit facility                $20,779  $19,316
Accounts payable                               24,507     38,814
Warrant liability                              700        670
Accrued expenses and other current liabilities 26,105     32,635
                                                        
Total current liabilities                      72,091     91,435
                                                        
Asset retirement obligations                   5,075      5,004
Deferred gain associated with sale of assets   3,400      3,400
Other long-term liabilities                    937        1,004
                                                        
Total liabilities                              81,503     100,843
                                                        
Shareholders' equity:                                    
Common stock                                   734,890    722,345
Treasury stock                                 (2,071)    (2,071)
Accumulated other comprehensive income         1,369      1,376
Accumulated deficit                            (638,104)  (652,627)
                                                        
Total shareholders' equity                     96,084     69,023
                                                        
Total liabilities and shareholders' equity     $177,587 $169,866

We have provided a reconciliation of our non-GAAP net income (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               For the Six Months
                                                              
                    March31, December31, March31, March31, March31,
                     2013       2012         2012       2013       2012
                                                              
Net income (loss) –  $11,697  $2,826     $(9,335) $14,523  $(23,564)
US GAAP
Adjustments:                                                   
Amortization expense 317        317          480        634        945
Stock-based          1,051      1,082        2,542      2,133      4,722
compensation expense
Asset retirement
obligations -        54         54           70         108        121
accretion expense
Specific severance
and restructuring    181        —            —          181        —
charges
Flood-related loss   —          —            114        —          5,812
Flood-related        (14,808)   (4,192)      —          (19,000)   (5,000)
insurance proceeds
Gain on sale of      (358)      —            —          (358)      —
assets
Losses on inventory  —          —            435        —          1,343
purchase commitments
Specific warranty    1,425      —            —          1,425      —
charges
Foreign exchange     24         (101)        (167)      (77)       (256)
(gain) loss
Loss from equity     —          —            241        —          1,201
method investment
Change in fair value
of financial         267        (237)        256        30         151
instruments
Interest expense,    186        238          121        424        250
net
Income tax expense   —          120          —          120        —
Foreign income tax
expense on capital   —          —            —          —          1,644
distributions
Total adjustments    (11,661)   (2,719)      4,092      (14,380)   10,933
                                                              
Net income (loss) -  $36      $107       $(5,243) $143     $(12,631)
Non-GAAP
Net income (loss) -
Non-GAAP per basic   $0.00    $0.00      $(0.22)  $0.01    $(0.54)
share
Net income (loss) -
Non-GAAP per diluted $0.00    $0.00      $(0.22)  $0.01    $(0.54)
share
Weighted average
number of basic      26,310     25,977       23,529     26,142     23,577
shares outstanding
Weighted average
number of diluted    26,642     26,236       23,529     26,432     23,577
shares outstanding

Stock-based compensation expense

The effect of recording stock-based compensation expense was as follows:

Stock-based                                                     
Compensation Expense
(in thousands)        For the Three Months               For the Six Months
                                                               
                     March31, December31, March31, March31, March31,
                      2013       2012         2012       2013       2012
Cost of revenue       $290     $315       $593     $605     $1,069
Selling, general, and 459        382          1,233      841        2,246
administrative
Research and          302        385          716        687        1,407
development
                                                               
Total stock-based     $1,051   $1,082     $2,542   $2,133   $4,722
compensation expense

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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