New Jersey | 0-22175 | 22-2746503 |
State of Incorporation | Commission File Number | IRS Employer Identification Number |
Item 2.02 | Results of Operations and Financial Condition. |
Exhibit Number | Exhibit Description | |
99.1 | Press Release, dated May 7, 2014, issued by EMCORE Corporation. |
EMCORE CORPORATION | |
Dated: May 7, 2014 | By: /s/ Mark B. Weinswig Name: Mark B. Weinswig Title: Chief Financial Officer |
• | Consolidated Q2 revenue of $42.2 million |
• | Consolidated Q2 GAAP net loss of $5.4 million and non-GAAP net loss of $2.6 million |
• | Anticipate Q3 revenue of $40 to $44 million |
Financial Highlights | For the Three Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands) | 3/31/2014 | 12/31/2013 | 3/31/2013 | |||||||||||||||||||||||||||||||||
Fiber | Solar | Consolidated | Fiber | Solar | Consolidated | Fiber | Solar | Consolidated | ||||||||||||||||||||||||||||
Revenue | $ | 23,620 | $ | 18,627 | $ | 42,247 | $ | 23,292 | $ | 20,919 | $ | 44,211 | $ | 23,130 | $ | 19,147 | $ | 42,277 | ||||||||||||||||||
Gross Profit | $ | 1,933 | $ | 4,933 | $ | 6,866 | $ | 2,397 | $ | 7,738 | $ | 10,135 | $ | 1,619 | $ | 6,214 | $ | 7,833 | ||||||||||||||||||
Operating (loss) income | $ | (7,320 | ) | $ | 2,071 | $ | (5,249 | ) | $ | (6,571 | ) | $ | 4,331 | $ | (2,240 | ) | $ | 7,892 | $ | 4,279 | $ | 12,171 |
• | Consolidated revenue was $42.2 million, representing a decrease from the immediate preceding quarter |
• | Fiber Optics revenues increased 1.4% over the immediate preceding quarter to $23.6 million, and Photovoltaics revenue decreased 11.0% to $18.6 million over the immediate preceding quarter |
• | Consolidated gross margin was 16.3%, a decrease from the 22.9% gross margin reported in the immediate preceding quarter |
• | On a segment basis, Fiber Optics gross margin declined to 8.2% from the 10.3% gross margin reported in the immediate preceding quarter and Photovoltaics gross margin decreased to 26.5% from the 37.0% gross margin reported in the immediate preceding quarter. A $1.0 million warranty reserve related to the previously divested Enterprise business was recorded this period. |
• | Consolidated operating loss was $5.2 million, a $3.0 million higher loss when compared to the immediate preceding quarter |
• | Consolidated net loss was $5.4 million, a $3.4 million higher loss when compared to the immediate preceding quarter |
• | Consolidated net loss per share was $0.18 compared to a net loss per share of $0.07 in the immediate preceding quarter |
• | Non-GAAP net loss was $3.6 million, or $0.12 per share, a decline of approximately $3.1 million, or $0.10 per share, over the immediate preceding quarter |
• | Order backlog for our Photovoltaics segment totaled $51.4 million as of March 31, 2014, representing a 7.1% decrease from $55.3 million reported as of December 31, 2013 |
• | Cash and cash equivalents increased $0.1 million to $18.2 million at the end of the second quarter, compared to $18.1 million at the end of the preceding quarter |
• | 15th Annual B. Riley & Co. Investor Conference at Loews Santa Monica Beach Hotel, Santa Monica, CA on May 21, 2014. |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | March 31, 2014 | March 31, 2013 | |||||||||||||||
Revenue | $ | 42,247 | $ | 44,211 | $ | 42,277 | $ | 86,458 | $ | 91,583 | |||||||||
Cost of revenue | 35,381 | 34,076 | 34,444 | 69,457 | 72,802 | ||||||||||||||
Gross profit | 6,866 | 10,135 | 7,833 | 17,001 | 18,781 | ||||||||||||||
Operating expense (income): | |||||||||||||||||||
Selling, general, and administrative | 6,911 | 7,972 | 6,771 | 14,883 | 13,675 | ||||||||||||||
Research and development | 5,204 | 4,403 | 4,112 | 9,607 | 9,502 | ||||||||||||||
Flood-related insurance proceeds | — | — | (14,808 | ) | — | (19,000 | ) | ||||||||||||
Gain on sale of assets | — | — | (413 | ) | — | (413 | ) | ||||||||||||
Total operating expense (income) | 12,115 | 12,375 | (4,338 | ) | 24,490 | 3,764 | |||||||||||||
Operating (loss) income | (5,249 | ) | (2,240 | ) | 12,171 | (7,489 | ) | 15,017 | |||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense, net | (117 | ) | (126 | ) | (186 | ) | (243 | ) | (424 | ) | |||||||||
Foreign exchange (loss) gain | (90 | ) | 100 | (21 | ) | 10 | 80 | ||||||||||||
Gain on sale of investment | 17 | 290 | — | 307 | — | ||||||||||||||
Change in fair value of financial instruments | 7 | (78 | ) | (267 | ) | (71 | ) | (30 | ) | ||||||||||
Total other (expense) income | (183 | ) | 186 | (474 | ) | 3 | (374 | ) | |||||||||||
(Loss) income before income tax expense | (5,432 | ) | (2,054 | ) | 11,697 | (7,486 | ) | 14,643 | |||||||||||
Income tax expense | — | — | — | — | (120 | ) | |||||||||||||
Net (loss) income | $ | (5,432 | ) | $ | (2,054 | ) | $ | 11,697 | $ | (7,486 | ) | $ | 14,523 | ||||||
Per share data: | |||||||||||||||||||
Net (loss) income per basic share | $ | (0.18 | ) | $ | (0.07 | ) | $ | 0.44 | $ | (0.25 | ) | $ | 0.55 | ||||||
Net (loss) income per diluted share | $ | (0.18 | ) | $ | (0.07 | ) | $ | 0.44 | $ | (0.25 | ) | $ | 0.54 | ||||||
Weighted-average number of basic shares outstanding | 30,392 | 29,938 | 26,310 | 30,162 | 26,142 | ||||||||||||||
Weighted-average number of diluted shares outstanding | 30,392 | 29,938 | 26,642 | 30,162 | 26,432 |
As of | As of | ||||||
March 31, 2014 | September 30, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 18,175 | $ | 16,104 | |||
Restricted cash | 1,993 | 815 | |||||
Accounts receivable, net | 37,453 | 41,826 | |||||
Inventory | 28,518 | 32,115 | |||||
Prepaid expenses and other current assets | 7,144 | 9,437 | |||||
Total current assets | 93,283 | 100,297 | |||||
Property, plant, and equipment, net | 47,213 | 49,744 | |||||
Goodwill | 20,384 | 20,384 | |||||
Other intangible assets, net | 1,650 | 2,159 | |||||
Other non-current assets, net | 888 | 1,130 | |||||
Total assets | $ | 163,418 | $ | 173,714 | |||
LIABILITIES and SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Borrowings from credit facility | $ | 17,600 | $ | 21,706 | |||
Accounts payable | 19,006 | 19,643 | |||||
Deferred gain associated with sale of assets | 3,400 | — | |||||
Warrant liability | 226 | 155 | |||||
Accrued expenses and other current liabilities | 20,461 | 21,597 | |||||
Total current liabilities | 60,693 | 63,101 | |||||
Asset retirement obligations | 5,157 | 5,053 | |||||
Deferred gain associated with sale of assets | — | 3,400 | |||||
Other long-term liabilities | 898 | 981 | |||||
Total liabilities | 66,748 | 72,535 | |||||
Shareholders’ equity: | |||||||
Common stock | 752,241 | 749,266 | |||||
Treasury stock | (2,071 | ) | (2,071 | ) | |||
Accumulated other comprehensive income | 1,625 | 1,623 | |||||
Accumulated deficit | (655,125 | ) | (647,639 | ) | |||
Total shareholders’ equity | 96,670 | 101,179 | |||||
Total liabilities and shareholders’ equity | $ | 163,418 | $ | 173,714 |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | March 31, 2014 | March 31, 2013 | |||||||||||||||
Net (loss) income - US GAAP | $ | (5,432 | ) | $ | (2,054 | ) | $ | 11,697 | $ | (7,486 | ) | $ | 14,523 | ||||||
Adjustments: | |||||||||||||||||||
Amortization expense | 254 | 254 | 317 | 508 | 634 | ||||||||||||||
Stock-based compensation expense | 1,104 | 1,135 | 1,051 | 2,239 | 2,133 | ||||||||||||||
Asset retirement obligations - accretion expense | 52 | 52 | 54 | 104 | 108 | ||||||||||||||
Specific severance and restructuring charges | 358 | 454 | 181 | 812 | 181 | ||||||||||||||
Flood-related insurance proceeds | — | — | (14,808 | ) | — | (19,000 | ) | ||||||||||||
Gain on sale of assets | — | — | (358 | ) | — | (358 | ) | ||||||||||||
Specific warranty charges | 1,045 | — | 1,425 | 1,045 | 1,425 | ||||||||||||||
Foreign exchange loss (gain) | 90 | (100 | ) | 24 | (10 | ) | (77 | ) | |||||||||||
Gain on sale of investment | (17 | ) | (290 | ) | — | (307 | ) | — | |||||||||||
Change in fair value of financial instruments | (7 | ) | 78 | 267 | 71 | 30 | |||||||||||||
Income tax expense | — | — | — | — | 120 | ||||||||||||||
Total adjustments | 2,879 | 1,583 | (11,847 | ) | 4,462 | (14,804 | ) | ||||||||||||
Net (loss) income - Non-GAAP | $ | (2,553 | ) | $ | (471 | ) | $ | (150 | ) | $ | (3,024 | ) | $ | (281 | ) | ||||
Net (loss) income - Non-GAAP per basic share | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.10 | ) | $ | (0.01 | ) | ||||
Net (loss) income - Non-GAAP per diluted share | $ | (0.08 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.10 | ) | $ | (0.01 | ) | ||||
Weighted average number of basic shares outstanding | 30,392 | 29,938 | 26,310 | 30,162 | 26,142 | ||||||||||||||
Weighted average number of diluted shares outstanding | 30,392 | 29,938 | 26,310 | 30,162 | 26,142 |
Stock-based Compensation Expense | For the Three Months Ended | For the Six Months Ended | |||||||||||||||||
(in thousands) | March 31, 2014 | December 31, 2013 | March 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||||||
Cost of revenue | $ | 214 | $ | 217 | $ | 290 | $ | 431 | $ | 605 | |||||||||
Selling, general, and administrative | 579 | 641 | 459 | 1,220 | 841 | ||||||||||||||
Research and development | 311 | 277 | 302 | 588 | 687 | ||||||||||||||
Total stock-based compensation expense | $ | 1,104 | $ | 1,135 | $ | 1,051 | $ | 2,239 | $ | 2,133 | |||||||||
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