EMCORE Corporation (NASDAQ: EMKR - News), a leading provider of
advanced Mixed-Signal Optics products that provide the foundation
for today's high-speed communications network infrastructures and
leading-edge defense systems, today announced financial results for
its fiscal third quarter ended June 30, 2018.
Jeffrey Rittichier, EMCORE's President and CEO commented,
“Several factors represented significant headwinds in the quarter.
The trough in CATV orders hurt us on the top line while a poor
product margin mix exerted additional pressure on margins. When
coupled with higher factory costs due to weak absorption and higher
E&O charges, our net income fell well below expectations.”
Rittichier went on to say “Despite these challenges, our cash
balance remained roughly unchanged in the quarter. Looking forward,
we see stronger ordering patterns in Cable Television, especially
with our LEML products, and a return toward more consistent
manufacturing costs.”
Financial Highlights - Fiscal Third
Quarter Ended June 30, 2018
Financial Highlights |
|
For the Three Months
Ended |
(in
thousands) |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
Revenue |
|
$ |
17,717 |
|
|
$ |
18,623 |
|
|
$ |
30,952 |
|
GAAP Gross
Profit |
|
$ |
1,198 |
|
|
$ |
4,947 |
|
|
$ |
10,842 |
|
Non-GAAP
Gross Profit |
|
$ |
1,298 |
|
|
$ |
5,078 |
|
|
$ |
10,972 |
|
GAAP
Operating (loss) income |
|
$ |
(7,954 |
) |
|
$ |
(3,929 |
) |
|
$ |
2,009 |
|
Non-GAAP
Operating (loss) income |
|
$ |
(6,926 |
) |
|
$ |
(2,235 |
) |
|
$ |
3,565 |
|
GAAP
pre-tax (loss) income from continuing operations |
|
$ |
(8,414 |
) |
|
$ |
(3,240 |
) |
|
$ |
2,455 |
|
Non-GAAP
pre-tax (loss) income from continuing operations |
|
$ |
(6,710 |
) |
|
$ |
(2,072 |
) |
|
$ |
3,642 |
|
GAAP
pre-tax EPS from continuing operations - per diluted share |
|
$ |
(0.31 |
) |
|
$ |
(0.12 |
) |
|
$ |
0.09 |
|
Non-GAAP
pre-tax EPS from continuing operations - per diluted share |
|
$ |
(0.26 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Statement Highlights for the
Third Quarter of Fiscal 2018:
- Consolidated revenue was $17.7 million, representing a 4.9%
decrease from the prior quarter
- Consolidated GAAP gross margin was 6.8%, representing a
decrease from the 26.6% gross margin in the prior quarter
- Consolidated Non-GAAP gross margin was 7.3%, representing a
decrease from 27.3% in the prior quarter
- Consolidated GAAP operating margin was (44.9)%, representing a
decrease from (21.1)% in the prior quarter
- Consolidated Non-GAAP operating margin was (39.1)%,
representing a decrease from (12.0)% in the prior quarter
- GAAP diluted pre-tax EPS from continuing operations was
$(0.31), representing a decrease from $(0.12) in the prior
quarter
- Non-GAAP diluted pre-tax EPS from continuing operations was
$(0.26), representing a decrease from $(0.08) in the prior
quarter
- Cash and cash equivalents was $65.3 million at the end of the
quarter, a decrease of $0.2 million when compared to the end of the
prior quarter
Business OutlookThe Company expects revenue for
the fiscal fourth quarter ending September 30, 2018 to be in
the range of $21 to $23 million.
Conference CallThe Company will discuss its
financial results on August 2, 2018 at 8:00 a.m. EDT (5:00 a.m
PDT). The call will be available by dialing 877-260-1479. For
international callers, please dial +1 334-323-0522. The conference
passcode number is 3752015. The call will be webcast live via the
Company's website at http://investor.emcore.com/events.cfm. A
webcast will be available for replay beginning Thursday,
August 2, 2018 for at least 90 days following the conclusion
of the call on the Company's website.
About EMCOREEMCORE Corporation is a leading
provider of advanced Mixed-Signal Optics products that provide the
foundation for today’s high-speed communication network
infrastructures and leading-edge defense systems. Our optical
chips, components, subsystems and systems enable broadband and
wireless providers to continually enhance their network capacity,
speed and coverage to advance the free flow of information that
empowers the lives of millions of people daily. The Mixed-Signal
Optics technology at the heart of our broadband transmission
products is shared with our fiber optic gyros and military
communications links to provide the aerospace and defense markets
state-of-the-art systems that keep us safe in an increasingly
unpredictable world. EMCORE’s performance-leading optical
components and systems serve a broad array of applications
including cable television, fiber-to-the-premise networks,
telecommunications, data centers, wireless infrastructure,
satellite RF fiber links, navigation systems and military
communications. EMCORE has fully vertically-integrated
manufacturing capability through its world-class Indium Phosphide
(InP) wafer fabrication facility at our headquarters in Alhambra,
California and is ISO 9001 certified in Alhambra and at our
facility in Beijing, China. For further information about EMCORE,
visit http://www.emcore.com.
Use of Non-GAAP Financial
MeasuresWe disclose non-GAAP gross profit, gross margin
percentage, operating income (loss), operating margin percentage,
pre-tax EPS from continuing operations and pre-tax income (loss)
from continuing operations as a supplemental measure to U.S. GAAP
gross profit, gross margin percentage, operating income (loss),
operating margin percentage, pre-tax EPS from continuing operations
and pre-tax income (loss) from continuing operations regarding our
operational performance. These financial measures exclude the
impact of certain items that we do not believe are indicative of
our core operating results; therefore, they have not been
calculated in accordance with U.S. GAAP. A reconciliation of
non-GAAP pre-tax income from continuing operations to GAAP income
from continuing operations, which identifies the items excluded
from the non-GAAP measures, are provided in the table below titled
"Reconciliation of GAAP to Non-GAAP Financial Measures".
We believe that these additional non-GAAP financial measures are
useful to investors in assessing our operating performance. We also
use these financial measures internally to evaluate our operating
performance and for planning and forecasting of future periods. In
addition, financial analysts that follow us may focus on and
publish both historical results and future projections based on our
non-GAAP financial measures. We also believe that it is in the best
interests of our investors to provide this non-GAAP
information.
While we believe that these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of these non-GAAP financial measures. Our
non-GAAP financial measures may not be reported by all of our
competitors and they may not be directly comparable to similarly
titled measures of other companies due to potential differences in
calculation. We compensate for these limitations by using these
non-GAAP financial measures as a supplement to U.S. GAAP and by
providing a reconciliation of our non-GAAP financial measures to
the most comparable U.S. GAAP financial measures.
Non-GAAP financial measures are not in accordance with or an
alternative for U.S. GAAP. Our non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable U.S. GAAP financial measures and our disclosures of
these measures should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S.
GAAP.
Forward-Looking StatementsThe information
provided herein may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking
statements are largely based on our current expectations and
projections about future events and financial trends affecting the
financial condition of our business. Such forward-looking
statements include, in particular, projections about our future
results included in our Exchange Act reports, statements about our
plans, strategies, business prospects, changes and trends in our
business and the markets in which we operate.
These forward-looking statements may be identified by the use of
terms and phrases such as “anticipates”, “believes”, “can”,
“could”, “estimates”, “expects”, “forecasts”, “intends”, “may”,
“plans”, “projects”, “targets”, “will”, and similar expressions or
variations of these terms and similar phrases. Additionally,
statements concerning future matters such as the development of new
products, enhancements or technologies, sales levels, expense
levels and other statements regarding matters that are not
historical are forward-looking statements. We caution that these
forward-looking statements relate to future events or our future
financial performance and are subject to business, economic, and
other risks and uncertainties, both known and unknown, that may
cause actual results, levels of activity, performance or
achievements of our business or our industry to be materially
different from those expressed or implied by any forward-looking
statements.
These forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
projected, including without limitation, the following: (a) the
rapidly evolving markets for the Company's products and uncertainty
regarding the development of these markets; (b) the Company's
historical dependence on sales to a limited number of customers and
fluctuations in the mix of products and customers in any period;
(c) delays and other difficulties in commercializing new products;
(d) the failure of new products: (i) to perform as expected without
material defects, (ii) to be manufactured at acceptable volumes,
yields, and cost, (iii) to be qualified and accepted by our
customers, and (iv) to successfully compete with products offered
by our competitors; (e) uncertainties concerning the availability
and cost of commodity materials and specialized product components
that we do not make internally; (f) actions by competitors; and (g)
other risks and uncertainties discussed under Item 1A - Risk
Factors in our Annual Report on Form 10-K for the fiscal year ended
September 30, 2017, as updated by our subsequent periodic
reports.
Forward-looking statements are based on certain assumptions and
analysis made in light of our experience and perception of
historical trends, current conditions and expected future
developments as well as other factors that we believe are
appropriate under the circumstances. While these statements
represent our judgment on what the future may hold, and we believe
these judgments are reasonable, these statements are not guarantees
of any events or financial results. All forward-looking statements
in this press release are made as of the date hereof, based on
information available to us as of the date hereof, and subsequent
facts or circumstances may contradict, obviate, undermine, or
otherwise fail to support or substantiate such statements. We
caution you not to rely on these statements without also
considering the risks and uncertainties associated with these
statements and our business that are addressed in our filings with
the Securities and Exchange Commission (“SEC”) that are available
on the SEC’s web site located at www.sec.gov, including the
sections entitled “Risk Factors” in our Annual Report on Form 10-K
and our Quarterly Reports on Form 10-Q. Certain information
included in this press release may supersede or supplement
forward-looking statements in our other Exchange Act reports filed
with the SEC. We assume no obligation to update any forward-looking
statement to conform such statements to actual results or to
changes in our expectations, except as required by applicable law
or regulation.
EMCORE
CORPORATIONCondensed Consolidated Statements of
Operations(in thousands, except per share
data)(unaudited)
|
|
For the Three Months
Ended |
|
For the Nine Months
Ended |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
Revenue |
|
$ |
17,717 |
|
|
$ |
18,623 |
|
|
$ |
30,952 |
|
|
$ |
60,376 |
|
|
$ |
93,719 |
|
Cost of
revenue |
|
16,519 |
|
|
13,676 |
|
|
20,110 |
|
|
46,317 |
|
|
61,796 |
|
Gross profit |
|
1,198 |
|
|
4,947 |
|
|
10,842 |
|
|
14,059 |
|
|
31,923 |
|
Operating
expense: |
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative |
|
5,237 |
|
|
5,644 |
|
|
5,815 |
|
|
15,700 |
|
|
17,065 |
|
Research and development |
|
3,915 |
|
|
3,300 |
|
|
3,340 |
|
|
11,015 |
|
|
8,680 |
|
Impairments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
468 |
|
(Gain) loss on sale of assets |
|
— |
|
|
(68 |
) |
|
(322 |
) |
|
39 |
|
|
(322 |
) |
Total operating expense |
|
9,152 |
|
|
8,876 |
|
|
8,833 |
|
|
26,754 |
|
|
25,891 |
|
Operating (loss) income |
|
(7,954 |
) |
|
(3,929 |
) |
|
2,009 |
|
|
(12,695 |
) |
|
6,032 |
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
216 |
|
|
163 |
|
|
77 |
|
|
490 |
|
|
146 |
|
Foreign exchange (loss) gain |
|
(676 |
) |
|
526 |
|
|
53 |
|
|
136 |
|
|
(306 |
) |
Other income |
|
— |
|
|
— |
|
|
316 |
|
|
— |
|
|
316 |
|
Total other (expense) income |
|
(460 |
) |
|
689 |
|
|
446 |
|
|
626 |
|
|
156 |
|
(Loss) income from continuing operations before income tax
benefit (expense) |
|
(8,414 |
) |
|
(3,240 |
) |
|
2,455 |
|
|
(12,069 |
) |
|
6,188 |
|
Income tax
benefit (expense) |
|
— |
|
|
169 |
|
|
(19 |
) |
|
502 |
|
|
(131 |
) |
(Loss) income from continuing operations |
|
(8,414 |
) |
|
(3,071 |
) |
|
2,436 |
|
|
(11,567 |
) |
|
6,057 |
|
Loss from discontinued operations, net of tax |
|
— |
|
|
— |
|
|
(11 |
) |
|
— |
|
|
(27 |
) |
Net (loss) income |
|
$ |
(8,414 |
) |
|
$ |
(3,071 |
) |
|
$ |
2,425 |
|
|
$ |
(11,567 |
) |
|
$ |
6,030 |
|
Per
share data: |
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per basic share: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.31 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
|
$ |
(0.43 |
) |
|
$ |
0.23 |
|
Discontinued operations |
|
— |
|
|
— |
|
|
(0.00 |
) |
|
— |
|
|
(0.00 |
) |
Net (loss)
income per basic share |
|
$ |
(0.31 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
|
$ |
(0.43 |
) |
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per diluted share: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.31 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
|
$ |
(0.43 |
) |
|
$ |
0.22 |
|
Discontinued operations |
|
— |
|
|
— |
|
|
(0.00 |
) |
|
— |
|
|
(0.00 |
) |
Net (loss)
income per diluted share |
|
$ |
(0.31 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
|
$ |
(0.43 |
) |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of basic shares outstanding |
|
27,387 |
|
|
27,197 |
|
|
26,833 |
|
|
27,204 |
|
|
26,577 |
|
Weighted-average number of diluted shares outstanding |
|
27,387 |
|
|
27,197 |
|
|
27,816 |
|
|
27,204 |
|
|
27,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMCORE
CORPORATIONCondensed Consolidated Balance
Sheets(in
thousands)(unaudited)
|
As of June 30,
2018 |
|
As of September 30,
2017 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
65,312 |
|
|
$ |
68,333 |
|
Restricted cash |
193 |
|
|
421 |
|
Accounts receivable, net |
14,870 |
|
|
22,265 |
|
Inventory |
24,152 |
|
|
25,139 |
|
Prepaid expenses and other current assets |
11,553 |
|
|
8,527 |
|
Total current assets |
116,080 |
|
|
124,685 |
|
Property,
plant, and equipment, net |
17,577 |
|
|
16,635 |
|
Non-current
inventory |
2,092 |
|
|
2,686 |
|
Other
non-current assets, net |
245 |
|
|
78 |
|
Total assets |
$ |
135,994 |
|
|
$ |
144,084 |
|
LIABILITIES and SHAREHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
11,519 |
|
|
$ |
11,818 |
|
Accrued expenses and other current liabilities |
11,332 |
|
|
9,825 |
|
Total current liabilities |
22,851 |
|
|
21,643 |
|
Asset
retirement obligations |
1,648 |
|
|
1,638 |
|
Other
long-term liabilities |
68 |
|
|
29 |
|
Total liabilities |
24,567 |
|
|
23,310 |
|
Shareholders’ equity: |
|
|
|
Common stock |
732,806 |
|
|
730,906 |
|
Treasury stock |
(47,721 |
) |
|
(47,721 |
) |
Accumulated other comprehensive income |
881 |
|
|
561 |
|
Accumulated deficit |
(574,539 |
) |
|
(562,972 |
) |
Total shareholders’ equity |
111,427 |
|
|
120,774 |
|
Total liabilities and shareholders’ equity |
$ |
135,994 |
|
|
$ |
144,084 |
|
|
|
|
|
|
|
|
|
We have provided a reconciliation of our non-GAAP pre-tax income
from continuing operations financial measure to its most directly
comparable U.S. GAAP financial measure as indicated in the table
below:
EMCORE
CorporationRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES(Loss) Income from Continuing
Operations(in thousands, except per share
data)(unaudited)
|
|
For the Three Months
Ended |
|
For the Nine Months
Ended |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
US
GAAP net (loss) income |
|
$ |
(8,414 |
) |
|
$ |
(3,071 |
) |
|
$ |
2,425 |
|
|
$ |
(11,567 |
) |
|
$ |
6,030 |
|
US GAAP net
loss from discontinued operations |
|
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
27 |
|
US
GAAP (loss) income from Continuing Operations |
|
(8,414 |
) |
|
(3,071 |
) |
|
2,436 |
|
|
(11,567 |
) |
|
6,057 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense |
|
— |
|
|
(169 |
) |
|
19 |
|
|
(502 |
) |
|
131 |
|
Other
income |
|
— |
|
|
— |
|
|
(316 |
) |
|
— |
|
|
(316 |
) |
Currency
exchange loss (gain) |
|
676 |
|
|
(526 |
) |
|
(53 |
) |
|
(136 |
) |
|
306 |
|
Total other income & tax related
adjustments |
|
676 |
|
|
(695 |
) |
|
(350 |
) |
|
(638 |
) |
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation expense - R&D |
|
157 |
|
|
166 |
|
|
143 |
|
|
461 |
|
|
362 |
|
Stock based
compensation expense - SG&A |
|
625 |
|
|
652 |
|
|
824 |
|
|
1,915 |
|
|
1,957 |
|
Litigation
related expenses |
|
127 |
|
|
174 |
|
|
7 |
|
|
593 |
|
|
361 |
|
Severance
and restructuring charges |
|
19 |
|
|
639 |
|
|
774 |
|
|
747 |
|
|
1,482 |
|
Impairments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
468 |
|
(Gain) loss
on sale of assets |
|
— |
|
|
(68 |
) |
|
(322 |
) |
|
39 |
|
|
(322 |
) |
Total operating expense adjustments |
|
928 |
|
|
1,563 |
|
|
1,426 |
|
|
3,755 |
|
|
4,308 |
|
|
|
|
|
|
|
|
|
|
|
|
ARO
accretion |
|
17 |
|
|
16 |
|
|
17 |
|
|
50 |
|
|
51 |
|
Stock based
compensation expense - COGS |
|
83 |
|
|
115 |
|
|
113 |
|
|
337 |
|
|
353 |
|
Total COGS adjustments |
|
100 |
|
|
131 |
|
|
130 |
|
|
387 |
|
|
404 |
|
Non-GAAP pre-tax (loss) income from continuing
operations |
|
$ |
(6,710 |
) |
|
$ |
(2,072 |
) |
|
$ |
3,642 |
|
|
$ |
(8,063 |
) |
|
$ |
10,890 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS from continuing operations - per diluted
share |
|
$ |
(0.31 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
|
$ |
(0.43 |
) |
|
$ |
0.22 |
|
Other
income and tax related adjustments |
|
0.02 |
|
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
0.00 |
|
Operating
expense adjustments |
|
0.03 |
|
|
0.06 |
|
|
0.05 |
|
|
0.14 |
|
|
0.16 |
|
COGS
adjustments |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.01 |
|
|
0.01 |
|
Non-GAAP pre-tax EPS from continuing operations - per
diluted share |
|
$ |
(0.26 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.13 |
|
|
$ |
(0.30 |
) |
|
$ |
0.39 |
|
GAAP Gross
Margin Percentage |
|
6.8 |
% |
|
26.6 |
% |
|
35.0 |
% |
|
23.3 |
% |
|
34.1 |
% |
Non GAAP
Gross Margin Percentage |
|
7.3 |
% |
|
27.3 |
% |
|
35.4 |
% |
|
23.9 |
% |
|
34.5 |
% |
GAAP
Operating Margin Percentage |
|
(44.9 |
)% |
|
(21.1 |
)% |
|
6.5 |
% |
|
(21.0 |
)% |
|
6.4 |
% |
Non GAAP
Operating Margin Percentage |
|
(39.1 |
)% |
|
(12.0 |
)% |
|
11.5 |
% |
|
(14.2 |
)% |
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenseThe effect of recording
stock-based compensation expense was as follows:
Stock-based Compensation Expense |
For the Three Months
Ended |
|
For the Nine Months
Ended |
(in
thousands) |
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
Cost of
revenue |
$ |
83 |
|
|
$ |
115 |
|
|
$ |
113 |
|
|
$ |
337 |
|
|
$ |
353 |
|
Selling,
general, and administrative |
625 |
|
|
652 |
|
|
824 |
|
|
1,915 |
|
|
1,957 |
|
Research
and development |
157 |
|
|
166 |
|
|
143 |
|
|
461 |
|
|
362 |
|
Total stock-based compensation expense |
$ |
865 |
|
|
$ |
933 |
|
|
$ |
1,080 |
|
|
$ |
2,713 |
|
|
$ |
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:EMCORE CorporationJikun Kim(626)
293-3400investor@emcore.com
Sapphire Investor Relations, LLCErica Mannion or Michael
Funari(617) 542-6180investor@emcore.com
EMCORE (NASDAQ:EMKR)
過去 株価チャート
から 6 2024 まで 7 2024
EMCORE (NASDAQ:EMKR)
過去 株価チャート
から 7 2023 まで 7 2024