Selected Quarterly Financial Information (unaudited)

The following tables present our unaudited consolidated results of operations for the eight most recently ended quarters. We believe that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below to present fairly the selected quarterly information when read in conjunction with the consolidated financial statements and notes included elsewhere in this Annual Report. Our results from operations vary substantially from quarter to quarter. Accordingly, the operating results for a quarter are not necessarily indicative of results for any subsequent quarter or for the full year. We have experienced and expect to continue to experience significant fluctuations in quarterly results.

EMCORE CORPORATION

Quarterly Consolidated Statements of Operations

For the Fiscal Year Ended September 30, 2011

(in thousands, except loss per share)

(unaudited)



	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,
	2010			2011			2011			2011
Revenue	$	52,107		$	47,218		$	49,480		$	52,123
Cost of revenue	39,427			36,638			40,010			42,090
Gross profit	12,680			10,580			9,470			10,033
Operating expenses (income):
Selling, general, and administrative	8,264			9,380			9,657			8,281
Research and development	7,191			7,984			9,549			8,129
Impairments	—			—			—			8,000
Litigation settlements, net	—			(2,590		)	1,465			(20		)
Total operating expenses	15,455			14,774			20,671			24,390
Operating loss	(2,775		)	(4,194		)	(11,201		)	(14,357		)
Other income (expense):
Interest income	—			—			—			2
Interest expense	(258		)	(130		)	(132		)	(122		)
Foreign exchange gain (loss)	(335		)	749			625			(304		)
Loss from equity method investment	—			(587		)	(259		)	(996		)
Change in fair value of financial instruments	(272		)	(1,038		)	(107		)	1,487
Other expense	(5		)	(5		)	(5		)	—
Total other income (expense)	(870		)	(1,011		)	122			67
Net loss	$	(3,645	)	$	(5,205	)	$	(11,079	)	$	(14,290	)
Per share data:
Net loss per basic and diluted share	$	(0.04	)	$	(0.06	)	$	(0.12	)	$	(0.15	)
Weighted-average number of basic and diluted shares outstanding	85,250			87,216			89,843			93,305

EMCORE CORPORATION

Quarterly Consolidated Statements of Operations

For the Fiscal Year Ended September 30, 2010

(in thousands, except loss per share)

(unaudited)



	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,
	2009			2010			2010			2010
Revenue	$	42,402		$	48,194		$	46,606		$	54,076
Cost of revenue	33,089			32,436			33,797			41,295
Gross profit	9,313			15,758			12,809			12,781
Operating expenses:
Selling, general, and administrative	12,227			9,023			14,004			7,295
Research and development	7,513			7,596			7,147			7,282
Total operating expenses	19,740			16,619			21,151			14,577
Operating loss	(10,427		)	(861		)	(8,342		)	(1,796		)
Other income (expense):
Interest income	2			17			3			2
Interest expense	(116		)	(103		)	(111		)	(109		)
Foreign exchange gain (loss)	(232		)	(729		)	(928		)	881
Change in fair value of financial instruments	(1,132		)	322			176			159
Other expense	(228		)	(108		)	(12		)	(22		)
Total other income (expense)	(1,706		)	(601		)	(872		)	911
Net loss	$	(12,133	)	$	(1,462	)	$	(9,214	)	$	(885	)
Per share data:
Net loss per basic and diluted share	$	(0.15	)	$	(0.02	)	$	(0.11	)	$	(0.01	)
Weighted-average number of basic and diluted shares outstanding	81,113			82,459			84,117			85,009

Significant transactions that affect the comparability of our operating results and financial condition include:

Fiscal 2011

•

Joint Venture: We entered into a joint venture agreement in fiscal 2010 with San'an Optoelectronics Co., Ltd. (San'an) for the purpose of engaging in the development, manufacturing, and distribution of CPV receivers, modules, and systems for terrestrial solar power applications under a technology license from us. The joint venture, Suncore Photovoltaic Technology Co., Ltd. (Suncore) was established in January 2011. To date, we have contributed $12.0 million in cash to Suncore as a capital contribution and have received $8.5 million of consulting fees from an affiliate of San'an. We have accounted for our investment in Suncore using the equity method of accounting and we have recorded the consulting fees as a reduction to our investment in Suncore. During fiscal 2011, we held a 40% registered ownership in Suncore and we recorded a $1.8 million loss from this equity method investment which was primarily related to start-up activities. See Footnote 17 - Suncore Joint Venture in the notes to the consolidated financial statements for additional information related to our Suncore joint venture.

•

Litigation Settlements: During the three months ended March 31, 2011, we received a cash payment of approximately $2.6 million, net of legal fees, in satisfaction of a judgment for damages awarded. During the three months ended June 30, 2011, we accrued $1.5 million for legal settlements considered probable. See Footnote 14 - Commitments and Contingencies in the notes to the consolidated financial statements for additional information related to our litigation proceedings.


•	Impairment Charge: During the three months ended September 30, 2011, we recorded a non-cash impairment charge of approximately $8.0 million related to long-lived assets associated with our Fiber Optics segment. See Footnote 9 - Intangible Assets in the notes to the consolidated financial statements for additional information related to this impairment charge.

•

Asset Retirement Obligations: We have known conditional asset retirement conditions, such as certain asset decommissioning and restoration of rented facilities to be performed in the future. During the three months ended September 30, 2011, we completed a review of our asset retirement and environmental obligations and we recorded an asset retirement obligation with an offset to fixed assets totaling $4.8 million. See Footnote 14 - Commitments and Contingencies in the notes to the consolidated financial statements for additional information related to our asset retirement obligations.

Fiscal 2010


•	Bad Debt: In June 2010, we recorded a $2.4 million reserve on accounts receivable related to a solar power system contract that management had uncertainty with respect to its total collectability.


•	Termination Fee: In June 2010, we incurred a one-time non-recurring $2.8 million charge associated with a termination fee on our previously announced joint venture with Tangshan Caofeidian Investment Corporation.


•	Legal Expenses: Throughout the year, we incurred $4.7 million related to legal expenses associated with certain patent and other litigation.