SOMERSET, NJ-Emcore, a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and solar power markets, sold its 49% interest in GELcore to the lighting operations of GE Consumer & Industrial, a division of General Electric (GE), for $100 million in cash. GE previously owned a 51% membership interest in GELcore.
The two companies formed GELcore in 1999 to address the solid-state lighting market with high brightness light emitting diode-based (HB-LED) lighting systems. GELcore’s products include traffic lights, channel letters, and other signage and display products. 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 $16.1 million. Emcore expects to realize a gain on the sale of GELcore in the range of $85 million to $90 million.
In 2005, GELcore recorded a net loss of $800,000, a decrease of $3.3 million from the $2.5 million net income recorded in 2004. For the six months ended June 30, 2006, GELcore recorded a net loss of $1.3 million.
