Emcore Corporation's fourth-quarter losses smaller than for previous quarter

Albuquerque, NM--Emcore Corporation (NASDAQ: EMKR), which provides compound-semiconductor-based components, subsystems, and systems for the fiber-optics and photovoltaics markets, announced its financial results for its fourth quarter and fiscal year ended September 30, 2010.

The results show losses, but smaller losses than for the company's third quarter. Emcore's annual results also show an improvement, with higher revenues and much lower losses than for the previous year.

Quarterly results
Emcore's consolidated revenue for its fourth fiscal quarter ended September 30, 2010 was $54.1 million, a 16% sequential increase compared to the third quarter. On a segment basis, revenue for the Fiber Optics segment was $34.4 million, a 9% sequential increase over the third quarter. Revenue for the Photovoltaics segment was $19.7 million, a 30% sequential increase over the third quarter.

Consolidated gross profit was $12.8 million, no change when compared to the third quarter. Consolidated gross margin was 23.6%, down from the 27.5% gross margin reported in the third quarter. On a segment basis, Fiber Optics gross margin was 20.4%, down from the 25.9% gross margin in the third quarter. Photovoltaics gross margin was 29.3%, down from the 30.7% gross margin in the third quarter.

Emcore's consolidated operating loss was $1.8 million, an improvement of $6.5 million, or 78%, from the $8.3 million operating loss in the third quarter. Its consolidated net loss was $0.9 million, an improvement of $8.3 million, or 90%, from the net loss of $9.2 million in the third quarter. The consolidated net loss per share was $0.01, an improvement of $0.10 per share from the $0.11 net loss per share in the third quarter.

After excluding certain non-cash and other adjustments, the consolidated non-GAAP (non-generally accepted accounting principles) operating loss was $1.9 million, an improvement of $0.9 million, or 31%, from the $2.8 million non-GAAP operating loss reported in the preceding quarter.

Annual results
Emcore's consolidated revenue for the fiscal year ended September 30, 2010 was $191.3 million, an increase of $14.9 million, or 8%, from the $176.4 million in the prior year. Its consolidated gross profit was $50.7 million, an improvement of $57.0 million, from a gross loss of $6.3 million in the prior year. Consolidated gross margin was 26.5%, an improvement from the negative 3.6% gross margin in the prior year. (In the prior year, Emcore incurred significant excess and obsolescence inventory charges.)

The consolidated operating loss was $21.4 million, an improvement of $119.6 million, or 85%, from the $141.0 million operating loss in the prior year. In fiscal 2009, the Company recorded $60.8 million of non-cash impairment charges related to goodwill, intangible assets, and other long-lived assets in the Fiber Optics segment.

The consolidated net loss was $23.7 million, an improvement of $115.1 million, or 83%, from the net loss of $138.8 million in the prior year, with the variance primarily due to the non-cash provisions and impairment charges discussed above as well as, improved operating performance at the gross margin level. The consolidated net loss per share was $0.28, an improvement of $1.47 per share from the $1.75 net loss per share in the prior year.

After excluding certain non-cash and other adjustments, the consolidated non-GAAP operating loss was $11.9 million, an improvement of $30.5 million, or 72%, from the $42.4 million non-GAAP operating loss reported in the prior year.

Business outlook
In the first fiscal quarter ending December 31, 2010, Emcore expects consolidated revenue to be $50 to $53 million.