September 1, 2006, Somerset, NJ--EMCORE Corporation, a provider of compound semiconductor-based components and subsystems for the broadband, fiberoptic, satellite, and solar power markets, has sold its 49% membership interest in GELcore, LLC (Valley View, OH) to the Lighting operations of GE Consumer & Industrial, a division of General Electric (GE) for $100 million in cash. GE owned a 51% membership interest in GELcore prior to acquiring the remaining 49% from EMCORE.
GE and EMCORE formed GELcore, a joint venture to address the solid-state lighting market with high-brightness light-emitting-diode (HB-LED)-based lighting systems in 1999. GELcore's products include traffic lights, channel letters, and other signage and display products that incorporate HB-LEDs. EMCORE has accounted for its investment in GELcore using the equity method of accounting and its cumulative share of losses since GELcore's formation through June 30, 2006 total approximately $16.1 million. EMCORE expects to realize a gain on the sale of GELcore in the range of $85-$90 million.
"The sale of GELcore has come at an opportune time for EMCORE as we enter the terrestrial solar market which represents an enormous end market for EMCORE" stated Reuben F. Richards, Jr., CEO. He added, "This sale provides us with one of the strongest balance sheets in our industry and positions us extremely well to advance our industry leading technology in both fiber optics and photovoltaics."
EMCORE will discuss the sale in a conference call on Wednesday, September 6, 2006, at 12:00 noon ET. To participate in the 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 17742. A replay of the call will be available beginning September 6, 2006 at 2::00 p.m. ET until September 13, 2006 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 72905937. The call also will be web cast via the Company's web site at http://www.emcore.com.
For more information, visit www.emcore.com.