EMCORE Announces Transfer of Production Equipment and Overseas Manufacturing Operations from Hytera to Fastrain
August 11 2021 - 4:01PM
EMCORE Corporation (Nasdaq: EMKR), a leading provider of advanced
mixed-signal products that serve the aerospace & defense and
broadband communications markets, announced today that the
equipment sale and manufacturing agreements entered into with
Hytera in October 2019 has reached mutually agreed termination by
both parties and EMCORE entered into further agreements with
Shenzhen Fastrain Technology Co., Ltd. and Hong Kong Fastrain
Company Limited (collectively, “Fastrain”), with the term of the
new manufacturing agreement with Fastrain extended to December 31,
2025.
In 2019, EMCORE announced the sale of its Cable TV
(CATV) production equipment and transfer of its CATV manufacturing
operations from the Company’s Beijing facility to Hytera
Communications (Hong Kong) Company Limited and Shenzhen Hytera
Communications Co., Ltd. (collectively, “Hytera”). The sale price
for the equipment was approximately $5.5 million and Hytera used
the equipment to manufacture CATV components and subsystems from
its facility in Southeast Asia.
With the execution of these new agreements and
transfer of production ownership from Hytera to Fastrain, EMCORE
will achieve a key milestone in furthering a transition of its CATV
business to a variable cost, electronics manufacturing services
(EMS) model. The agreement with Fastrain includes the sale of
further EMCORE production equipment for approximately $1.4M, and in
addition it will create positive value to both companies while
addressing present external global risks and opportunities. These
operational changes in CATV will fulfill the objective of enabling
the product lines to move forward servicing the market needs with a
full portfolio of transmitter and laser offerings.
“Our 2019 agreement with Hytera has played an
integral role in the transition to a fully EMS-based model for our
Cable TV products. We are very appreciative that Hytera has been
with us during this transformation,” said Iain Black, Senior Vice
President of Operations at EMCORE. “We are extremely pleased to
take this new step with Fastrain and are looking forward to many
years of success together, with continuing improvements in
operational efficiencies and capabilities over the coming
quarters,” added Mr. Black.
About EMCOREEMCORE Corporation is
a leading provider of advanced mixed-signal products that serve the
aerospace & defense and broadband communications
markets. Our best-in-class components and systems support a
broad array of applications including navigation and inertial
sensing, defense optoelectronics, broadband transport, 5G wireless
infrastructure, optical sensing, and cloud data centers. We
leverage industry-leading Quartz MEMS, Lithium Niobate, and Indium
Phosphide chip-level technology to deliver state-of-the-art
component and system-level products across our end-market
applications. EMCORE has vertically-integrated manufacturing
capability at its wafer fabrication facility in Alhambra, CA, and
Quartz MEMS manufacturing facility in Concord, CA. Our
manufacturing facilities maintain ISO 9001 quality management
certification, and we are AS9100 aerospace quality certified at our
facility in Concord. For further information about EMCORE, please
visit http://www.emcore.com.
About Fastrain Fastrain is a
professional manufacturing solutions provider of high-quality,
durable electronic products, headquartered in Shenzhen, China with
additional regional and global operations across Thailand,
Malaysia, and Hong Kong. Fastrain has accumulated extensive
experience of operation and has been providing best-in-class
services, including Design, Manufacturing, Testing, and Supply
Chain solutions for industry leaders in Optical Communications and
Marine Communications.
About Hytera Hytera
Communications Corporation Limited (002583.SZ) is a global
privately-run company headquartered in Shenzhen China. Established
in 1993, Hytera, a global leading Private Mobile Radio (PMR)
solution provider, is dedicated to fulfilling the needs of
customers in industries such as public safety, emergency response,
transportation, energy, industry, and commerce to improve
organizational efficiency and make the world safer. Hytera also
endeavors to provide high-quality one-stop electronics
manufacturing services (EMS) to top enterprises in selective
industries including automotive electronics, artificial
intelligence, communication service, robotics, and other sectors.
For more information, please visit www.hytera.com.
Forward-looking statements: The
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, as amended.
Such statements include statements regarding EMCORE's plans,
strategies, business prospects, growth opportunities, changes, and
trends in our business and expansion into new markets. These
forward-looking statements are based on management's current
expectations, estimates, forecasts, and projections about EMCORE
and are subject to risks and uncertainties that could cause actual
results and events to differ materially from those stated in the
forward-looking statements, including without limitation, the
following: (a) uncertainties regarding the effects of the COVID-19
pandemic and the impact of measures intended to reduce its spread
on our business and operations, which is evolving and beyond our
control; (b) the rapidly evolving markets for EMCORE's products and
uncertainty regarding the development of these markets; (c)
EMCORE's historical dependence on sales to a limited number of
customers and fluctuations in the mix of products and customers in
any period; (d) delays and other difficulties in commercializing
new products; (e) 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; (f) uncertainties concerning
the availability and cost of commodity materials and specialized
product components that we do not make internally; (g) actions by
competitors; (h) risks and uncertainties related to applicable laws
and regulations, including the impact of changes to applicable tax
laws and tariff regulations; (i) risks related to the transition of
certain of our manufacturing operations from our Beijing facility
to a contract manufacturer’s facility in Thailand; (j) risks and
uncertainties related to manufacturing and production capacity and
expansion plans related thereto; and (k) 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, 2020,
as updated by our subsequent periodic reports. Forward-looking
statements contained in this press release are made only as of the
date hereof, and EMCORE undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
EMCORE Corporation
Tom Minichiello Chief Financial Officer (626)
293-3400 investor@emcore.com
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