For its fiscal fourth-quarter 2014 (to end-September), Emcore Corp of Alhambra, CA, USA, which makes compound semiconductor-based components and subsystems for the fiber-optics market, has reported revenue of $43.7m, down 1.9% on $44.6m last quarter but up 1.4% on $43.1m a year ago. Revenue for full-year fiscal 2014 was $174.8m, up 3.9% on $168.1m in fiscal 2013.
Fiscal Q4 Photovoltaics revenue was $15.3m (35% of total revenue), down 17.1% on $18.4m last quarter (41% of total revenue) and down 25% on $20.5m a year ago (47% of total revenue). However, full-year Photovoltaics revenue of $73.2m is still up 2.9% on fiscal 2013’s $71.2m (remaining 42% of total revenue).
Fiscal Q4 Fiber Optics revenue was $28.5m (65% of total revenue), down 26% on $22.6m a year ago (53% of total revenue) but up 8.8% on $26.2m last quarter (59% of total revenue). Full-year Fiber Optics revenue was $101.6m, up 4.7% on fiscal 2013’s $97m (remaining 58% of total revenue).
Overall gross margin was 14.4%, down from 21.1% last quarter but up from 12.5% a year ago. Full-year gross margin has risen from 16.8% in fiscal 2013 to 18.7%.
On a segment basis, Fiber Optics gross margin has fallen from 16.4% last quarter to 11.1% (down on 11.6% a year ago) due to an excess and obsolete inventory reserve of $2.8m. Nevertheless, full-year Fiber Optics gross margin was 11.6%, up from 10.1% in fiscal 2013. Although down from 27.7% last quarter, Photovoltaics gross margin of 20.5% is still up on 13.5% a year ago. Full-year Photovoltaics gross margin has risen from 25.8% to 28.6%.
On a non-GAAP basis, full-year net loss has been cut from fiscal 2013’s $12.1m ($0.46 per share) to $5.8m ($0.19 per share) in fiscal 2014. Fourth-quarter net loss was $1.2m ($0.04 per share), an improvement on $1.6m ($0.05 per share) last quarter and $5.8m ($0.21 per share) a year ago. During the quarter, cash and cash equivalents rose by $2.5m, from $18.2m to $20.7m.
All this was despite selling, general & administrative (SG&A) expenses rising from $7.8m last quarter to $10m due to expenses associated with divestitures and severance costs.
On 17 September, Emcore announced the sale of its Space Photovoltaics business for $150m to SolAero Technologies Corp, an affiliate of private equity firm Veritas Capital (finalized on 10 December). Also, on 23 October Emcore said that it had agreed to sell its Telecommunications Fiber Optics business (tunable laser and transceiver product lines) to NeoPhotonics Corp of San Jose, CA, USA. Following the completion of this Digital Products sale (in early January) Emcore will continue to operate its Broadband Fiber Optics business.
For first-quarter 2015 (to end-December 2014), for the remaining Broadband Fiber Optics business Emcore expects revenue of $17-19m (up 26% on the September quarter’s $14.3m). Net loss should be $1-2m, not including any financial amounts associated with the Photovoltaics or Digital Products businesses.
