For fiscal third-quarter 2015 (to end-June), Emcore Corp of Alhambra, CA, USA (which provides compound semiconductor-based chip-level devices, optical components, subsystems and systems for broadband and specialty fiber-optics markets) has reported revenue of $21.2m (exceeding the guidance of $19-21m). This is up 11.2% on $19m last quarter and up 55.9% on $13.6m a year ago, driven by significantly higher sales of CATV products (primarily to US customers) and chip-level devices.
Emcore completed the sales of its Space Photovoltaics business in mid-December to SolAero Technologies Corp and of its Telecommunications Fiber Optics business (the tunable laser and transceiver Digital Products lines) at the beginning of January to NeoPhotonics Corp of San Jose, CA, USA. The continuing Broadband Fiber-Optics business includes products for cable television (CATV) and fiber-to-the-premise (FTTP) networks as well as satellite communications, video transport and specialty photonics for defense & homeland security applications.
In fiscal Q3, sales of CATV products, which include quadrature amplitude modulation (QAM) transmitters and receivers, represented the largest percentage of total fiber optics-related revenue. Sales of chip-level device products, which include avalanche photodiodes (APDs) and gain chips, rose as Emcore expanded sales to customers, primarily in Asia.
By region, $15.5m of revenue came from the USA, $3.7m from Asia, and $1.7m from Europe.
"In addition to top-line growth across our major product lines, we are also beginning to realize the benefits of improved performance in operations from our lean manufacturing initiatives," says president & CEO Jeffrey Rittichier.
On a non-GAAP basis (for continuing operations), gross margin has risen further, from 33.5% last quarter (the highest in the past five years) to 36.3%.
Total operating expenses were $6.8m, cut from $8m last quarter, due to selling, general & administrative (SG&A) expenses being cut from $6m to $4.5m, as the firm begins to benefit from the relocation of its corporate headquarters late last year from Albuquerque, NM, to Alhambra, CA.
Income from continuing operations was $1.3m, compared with roughly breakeven last quarter and a loss of $4.1m a year ago.
On 15 May, Emcore announced a modified Dutch auction tender offer, which it completed on 15 June with the purchase of 6.9 million shares of its common stock at a purchase price of $6.55 per share (for a total of $45m, excluding related fees and expenses).
During the quarter, cash and cash equivalents fell from $141m to $114.1m.
"This quarter's performance marks three important financial milestones for Emcore; a return to GAAP profitability from continuing operations, stronger non-GAAP net income and generation of positive cash flows from operations," says Rittichier. "We see our third quarter's performance as a significant step forward for our shareholders."
For fiscal fourth-quarter (to 30 September 2015), Emcore expects revenue to grow to $22-24m.
