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 August 7, 2014, issued by EMCORE Corporation. |
EMCORE CORPORATION | |
Dated: August 7, 2014 | By: /s/ Mark B. Weinswig Name: Mark B. Weinswig Title: Chief Financial Officer |
• | Consolidated Q3 revenue of $44.6 million |
• | Consolidated Q3 GAAP net loss of $3.2 million and non-GAAP net loss of $1.6 million |
• | Anticipate Q4 revenue of $41 to $45 million |
Financial Highlights | For the Three Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands) | 6/30/2014 | 3/31/2014 | 6/30/2013 | |||||||||||||||||||||||||||||||||
Fiber | Solar | Consolidated | Fiber | Solar | Consolidated | Fiber | Solar | Consolidated | ||||||||||||||||||||||||||||
Revenue | $ | 26,172 | $ | 18,410 | $ | 44,582 | $ | 23,620 | $ | 18,627 | $ | 42,247 | $ | 21,560 | $ | 11,913 | $ | 33,473 | ||||||||||||||||||
Gross Profit | $ | 4,288 | $ | 5,105 | $ | 9,393 | $ | 1,933 | $ | 4,933 | $ | 6,866 | $ | 638 | $ | 3,406 | $ | 4,044 | ||||||||||||||||||
Operating (loss) income | $ | (5,092 | ) | $ | 1,961 | $ | (3,131 | ) | $ | (7,320 | ) | $ | 2,071 | $ | (5,249 | ) | $ | (8,998 | ) | $ | 1,329 | $ | (7,669 | ) |
• | Consolidated revenue was $44.6 million, representing a 5.5% increase from the immediate preceding quarter |
• | Fiber Optics revenues increased 10.8% over the immediate preceding quarter to $26.2 million, and Photovoltaics revenue decreased 1.2% to $18.4 million over the immediate preceding quarter |
• | Consolidated gross margin was 21.1%, an increase from the 16.3% gross margin reported in the immediate preceding quarter |
• | On a segment basis, Fiber Optics gross margin increased to 16.4% from the 8.2% gross margin reported in the immediate preceding quarter and Photovoltaics gross margin increased to 27.7% from the 26.5% gross margin reported in the immediate preceding quarter. |
• | Consolidated operating loss was $3.1 million, a $2.1 million improvement when compared to the immediate preceding quarter |
• | Consolidated net loss was $3.2 million, a $2.2 million improvement when compared to the immediate preceding quarter |
• | Consolidated net loss per share was $0.10 compared to a net loss per share of $0.18 in the immediate preceding quarter |
• | Non-GAAP net loss was $1.6 million, or $0.05 per share, an improvement of approximately $1.0 million, or $0.03 per share, over the immediate preceding quarter |
• | Order backlog for our Photovoltaics segment totaled $70.5 million as of June 30, 2014, representing a 37.2% increase from $51.4 million reported as of March 31, 2014 |
• | Cash and cash equivalents stayed relatively flat at $18.2 million at the end of the third quarter |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||||
Revenue | $ | 44,582 | $ | 42,247 | $ | 33,473 | $ | 131,040 | $ | 125,056 | |||||||||
Cost of revenue | 35,189 | 35,381 | 29,429 | 104,646 | 102,231 | ||||||||||||||
Gross profit | 9,393 | 6,866 | 4,044 | 26,394 | 22,825 | ||||||||||||||
Operating expense (income): | |||||||||||||||||||
Selling, general, and administrative | 7,843 | 6,911 | 7,039 | 22,726 | 20,714 | ||||||||||||||
Research and development | 4,681 | 5,204 | 4,674 | 14,288 | 14,176 | ||||||||||||||
Flood-related insurance proceeds | — | — | — | — | (19,000 | ) | |||||||||||||
Gain on sale of assets | — | — | — | — | (413 | ) | |||||||||||||
Total operating expense | 12,524 | 12,115 | 11,713 | 37,014 | 15,477 | ||||||||||||||
Operating (loss) income | (3,131 | ) | (5,249 | ) | (7,669 | ) | (10,620 | ) | 7,348 | ||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense, net | (134 | ) | (117 | ) | (185 | ) | (377 | ) | (609 | ) | |||||||||
Foreign exchange gain (loss) | 5 | (90 | ) | 181 | 15 | 261 | |||||||||||||
Gain on sale of investment | — | 17 | — | 307 | — | ||||||||||||||
Change in fair value of financial instruments | 110 | 7 | 373 | 39 | 343 | ||||||||||||||
Other expense | — | — | 17 | — | 17 | ||||||||||||||
Total other (expense) income | (19 | ) | (183 | ) | 386 | (16 | ) | 12 | |||||||||||
(Loss) income before income tax expense | (3,150 | ) | (5,432 | ) | (7,283 | ) | (10,636 | ) | 7,360 | ||||||||||
Income tax expense | — | — | — | — | (120 | ) | |||||||||||||
Net (loss) income | $ | (3,150 | ) | $ | (5,432 | ) | $ | (7,283 | ) | $ | (10,636 | ) | $ | 7,240 | |||||
Per share data: | |||||||||||||||||||
Net (loss) income per basic share | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.27 | ) | $ | (0.35 | ) | $ | 0.27 | |||||
Net (loss) income per diluted share | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.27 | ) | $ | (0.35 | ) | $ | 0.27 | |||||
Weighted-average number of basic shares outstanding | 30,656 | 30,392 | 26,609 | 30,327 | 26,320 | ||||||||||||||
Weighted-average number of diluted shares outstanding | 30,656 | 30,392 | 26,609 | 30,327 | 26,620 |
As of | As of | ||||||
June 30, 2014 | September 30, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 18,165 | $ | 16,104 | |||
Restricted cash | 806 | 815 | |||||
Accounts receivable, net | 43,196 | 41,826 | |||||
Inventory | 27,549 | 32,115 | |||||
Prepaid expenses and other current assets | 7,633 | 9,437 | |||||
Total current assets | 97,349 | 100,297 | |||||
Property, plant, and equipment, net | 46,048 | 49,744 | |||||
Goodwill | 20,384 | 20,384 | |||||
Other intangible assets, net | 1,396 | 2,159 | |||||
Other non-current assets, net | 835 | 1,130 | |||||
Total assets | $ | 166,012 | $ | 173,714 | |||
LIABILITIES and SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Borrowings from credit facility | $ | 20,937 | $ | 21,706 | |||
Accounts payable | 21,185 | 19,643 | |||||
Deferred gain associated with sale of assets | 3,400 | — | |||||
Warrant liability | 116 | 155 | |||||
Accrued expenses and other current liabilities | 19,846 | 21,597 | |||||
Total current liabilities | 65,484 | 63,101 | |||||
Asset retirement obligations | 5,209 | 5,053 | |||||
Deferred gain associated with sale of assets | — | 3,400 | |||||
Other long-term liabilities | 806 | 981 | |||||
Total liabilities | 71,499 | 72,535 | |||||
Shareholders’ equity: | |||||||
Common stock | 753,236 | 749,266 | |||||
Treasury stock | (2,071 | ) | (2,071 | ) | |||
Accumulated other comprehensive income | 1,623 | 1,623 | |||||
Accumulated deficit | (658,275 | ) | (647,639 | ) | |||
Total shareholders’ equity | 94,513 | 101,179 | |||||
Total liabilities and shareholders’ equity | $ | 166,012 | $ | 173,714 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||||
Net (loss) income - US GAAP | $ | (3,150 | ) | $ | (5,432 | ) | $ | (7,283 | ) | $ | (10,636 | ) | $ | 7,240 | |||||
Adjustments: | |||||||||||||||||||
Amortization expense | 254 | 254 | 317 | 762 | 952 | ||||||||||||||
Stock-based compensation expense | 1,180 | 1,104 | 1,152 | 3,419 | 3,285 | ||||||||||||||
Asset retirement obligations - accretion expense | 52 | 52 | 53 | 156 | 161 | ||||||||||||||
Specific severance and restructuring charges | 179 | 358 | 241 | 991 | 422 | ||||||||||||||
Flood-related insurance proceeds | — | — | — | — | (19,000 | ) | |||||||||||||
Gain on sale of assets | — | — | — | — | (358 | ) | |||||||||||||
Specific warranty charges | — | 1,045 | — | 1,045 | 1,425 | ||||||||||||||
Foreign exchange (gain) loss | (5 | ) | 90 | (181 | ) | (15 | ) | (261 | ) | ||||||||||
Gain on sale of investment | — | (17 | ) | — | (307 | ) | — | ||||||||||||
Change in fair value of financial instruments | (110 | ) | (7 | ) | (373 | ) | (39 | ) | (343 | ) | |||||||||
Income tax expense | — | — | — | — | 120 | ||||||||||||||
Total adjustments | 1,550 | 2,879 | 1,209 | 6,012 | (13,597 | ) | |||||||||||||
Net loss - Non-GAAP | $ | (1,600 | ) | $ | (2,553 | ) | $ | (6,074 | ) | $ | (4,624 | ) | $ | (6,357 | ) | ||||
Net loss - Non-GAAP per basic share | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.23 | ) | $ | (0.15 | ) | $ | (0.24 | ) | ||||
Net loss - Non-GAAP per diluted share | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.23 | ) | $ | (0.15 | ) | $ | (0.24 | ) | ||||
Weighted average number of basic shares outstanding | 30,656 | 30,392 | 26,609 | 30,327 | 26,320 | ||||||||||||||
Weighted average number of diluted shares outstanding | 30,656 | 30,392 | 26,609 | 30,327 | 26,320 |
Stock-based Compensation Expense | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
(in thousands) | June 30, 2014 | March 31, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||
Cost of revenue | $ | 254 | $ | 214 | $ | 311 | $ | 685 | $ | 916 | |||||||||
Selling, general, and administrative | 607 | 579 | 485 | 1,827 | 1,326 | ||||||||||||||
Research and development | 319 | 311 | 356 | 907 | 1,043 | ||||||||||||||
Total stock-based compensation expense | $ | 1,180 | $ | 1,104 | $ | 1,152 | $ | 3,419 | $ | 3,285 | |||||||||
D!\@'Z`@,"#`(4`AT"
M)@(O`C@"00)+`E0"70)G`G$">@*$`HX"F`*B`JP"M@+!`LL"U0+@`NL"]0,`
M`PL#%@,A`RT#.`-#`T\#6@-F`W(#?@.*`Y8#H@.N`[H#QP/3`^`#[`/Y!`8$
M$P0@!"T$.P1(!%4$8P1Q!'X$C`2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C`:=!J\&
MP`;1!N,&]0<'!QD'*P<]!T\'80=T!X8'F0>L![\'T@?E!_@("P@?"#((1@A:
M"&X(@@B6"*H(O@C2".<(^PD0"24).@E/"60)>0F/":0)N@G/">4)^PH1"B<*
M/0I4"FH*@0J8"JX*Q0K<"O,+"PLB"SD+40MI"X`+F`NP"\@+X0OY#!(,*@Q#
M#%P,=0R.#*<,P`S9#/,-#0TF#4`-6@UT#8X-J0W##=X-^`X3#BX.20YD#G\.
MFPZV#M(.[@\)#R4/00]>#WH/E@^S#\\/[!`)$"800Q!A$'X0FQ"Y$-<0]1$3
M$3$13Q%M$8P1JA')$>@2!Q(F$D429!*$$J,2PQ+C$P,3(Q-#$V,3@Q.D$\43
MY10&%"<4211J%(L4K13.%/`5$A4T%585>!6;%;T5X!8#%B86219L%H\6LA;6
M%OH7'1=!%V47B1>N%](7]Q@;&$`891B*&*\8U1CZ&2`911EK&9$9MQG=&@0:
M*AI1&G<:GAK%&NP;%!L[&V,;BANR&]H<`APJ'%(<>QRC',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB`5($$@;""8(,0@\"$<(4@A
M=2&A(