EMCORE Corporation (Nasdaq: EMKR), the world’s largest independent
provider of inertial navigation solutions to the aerospace and
defense industry, today announced results for the fiscal 2023 third
quarter (3Q23) ended June 30, 2023. Management will host a
conference call to discuss 3Q23 financial and business results on
August 9, 2023 at 8:00 a.m. Eastern Time (ET).
For 3Q23, EMCORE’s consolidated revenue was $26.7 million.
Aerospace and Defense (A&D) segment revenue of $27.0 million,
comprised of $26.7 million for inertial navigation and $0.3 million
for defense optoelectronics. Broadband segment revenue was reported
as $(0.3) million due to $1.3 million of contract losses stemming
from the announced shutdown of this segment in April. Excluding
this item, Broadband segment revenue was $1.0 million and total
last-time-buy revenue for operations to be shutdown (defense
optoelectronics and the Broadband segment) aggregated to $1.3
million. Net loss was $9.9 million and $7.0 million on a GAAP and
non-GAAP basis, respectively. Adjusted EBITDA was negative $4.3
million. Please refer to the schedules at the end of this press
release for GAAP to non-GAAP reconciliations and other information
related to non-GAAP financial measures.
“Inertial navigation made significant progress during the
quarter, achieving 27% GAAP and 30% non-GAAP gross margins on
strong shipment performance, a favorable mix, and improved
operational execution in our Concord facility. Revenue grew in 3Q23
for the fifth consecutive quarter and 10% sequentially,” said Jeff
Rittichier, President and Chief Executive Officer of EMCORE. “In
April, we announced a major restructuring involving the shutdown of
the Broadband segment and discontinuance of our defense
optoelectronics product lines. Shipment of customer last-time-buys
for these products were in-line with expectation for the June
quarter. As announced earlier today, we expect to consummate a
transaction for the sale of these products, excluding chips, during
the quarter ending September 30, 2023.” Rittichier concluded his
remarks by saying, “We are continuing to work with interested
parties towards a sale of our wafer fabrication facility.”
Consolidated Results
|
Three Months Ended |
|
|
Jun 30, 2023 |
Mar 31, 2023 |
+increase/ |
|
3Q23 |
2Q23 |
-decrease |
Revenue |
$26.7M |
$26.8M |
-$0.1M |
Gross margin |
13% |
14% |
-1% |
Operating expenses |
$13.5M |
$15.8M |
-$2.3M |
Operating margin |
(37%) |
(45%) |
+8% |
Net loss |
($9.9M) |
($12.2M) |
+$2.3M |
Net loss per share diluted |
($0.18) |
($0.27) |
+$0.09 |
Non-GAAP gross margin
(a) |
16% |
16% |
—% |
Non-GAAP operating
expenses (a) |
$11.1M |
$12.4M |
-$1.3M |
Non-GAAP operating
margin (a) |
(25%) |
(30%) |
+5% |
Non-GAAP net loss
(a) |
($7.0M) |
($8.3M) |
+$1.3M |
Non-GAAP net loss per share diluted (a) |
($0.13) |
($0.18) |
+$0.05 |
Adjusted EBITDA |
($4.3M) |
($6.5M) |
+$2.2M |
Ending cash and cash
equivalents |
$20.2M |
$24.8M |
-$4.6M |
Line of credit and loan payable |
$11.7M |
$12.0M |
-$0.3M |
(a) Please refer to the schedules at the end of this press release
for GAAP to non-GAAP reconciliations and other information related
to non-GAAP financial measures. |
|
Aerospace and Defense Segment
For 3Q23, A&D’s sequential-quarter revenue increase was
driven by inertial navigation, which grew to $26.7 million, an
increase of $2.4 million or 10%. This was slightly offset by a drop
in sales of defense optoelectronics. A&D segment gross margin
increased due to the higher revenue and improved operational
performance at our Concord QMEMS site. R&D expense decreased
sequentially driven by lower project material spend.
|
Three Months Ended |
|
|
Jun 30, 2023 |
Mar 31, 2023 |
+increase/ |
|
3Q23 |
2Q23 |
-decrease |
A&D segment
revenue |
$27.0M |
$25.2M |
+$1.8M |
A&D segment gross
margin |
27% |
22% |
+5% |
A&D segment R&D
expense |
$4.4M |
$5.3M |
-$0.9M |
A&D segment gross profit less R&D expense |
$2.7M |
$0.3M |
+$2.4M |
Non-GAAP A&D segment
gross margin (a) |
29% |
24% |
+5% |
Non-GAAP A&D segment
R&D expense (a) |
$4.3M |
$5.1M |
-$0.8M |
Non-GAAP A&D segment gross profit less R&D expense (a) |
$3.6M |
$0.9M |
+$2.7M |
(a) Please refer to the schedules at the end of this press release
for GAAP to non-GAAP reconciliations and other information related
to non-GAAP financial measures. |
|
The following table highlights the comparative inertial
navigation (IN) results within the A&D segment (excluding
defense optoelectronics which was part of the April restructuring
announcement). For 3Q23, IN’s sequential-quarter revenue increase
was driven by double-digit growth for both our Space &
Navigation site in Budd Lake, NJ and QMEMS product shipments from
our Concord, CA facility. Operations in Tinley Park, IL continued
on a steady growth path, with revenue up 5% sequentially. IN’s
gross margin increase was driven by higher revenue, a favorable
mix, and improved operational performance in Concord. R&D
expense decreased sequentially driven by lower project material
spend.
|
Three Months Ended |
|
|
Jun 30, 2023 |
Mar 31, 2023 |
+increase/ |
|
3Q23 |
2Q23 |
-decrease |
IN revenue |
$26.7M |
$24.3M |
+$2.4M |
IN gross margin |
27% |
20% |
+7% |
IN R&D expense |
$4.3M |
$4.9M |
-$0.6M |
IN gross profit less R&D expense |
$2.9M |
$—M |
+$2.9M |
Non-GAAP IN gross margin
(a) |
30% |
22% |
+8% |
Non-GAAP IN R&D
expense (a) |
$4.2M |
$4.7M |
-$0.5M |
Non-GAAP IN gross profit less R&D expense (a) |
$3.7M |
$0.6M |
+$3.1M |
(a) Please refer to the schedules at the end of this press release
for GAAP to non-GAAP reconciliations and other information related
to non-GAAP financial measures. |
|
Broadband Segment
For 3Q23, Broadband’s segment revenue was reported as ($0.3)
million due to $1.3 million of contract losses stemming from the
announced shutdown of this segment in April. Excluding this
adjustment, Broadband segment revenue was $1.0 million representing
the start of shipment for customer last-time-buy orders.
Broadband’s gross margin decline was attributable to the lower
revenue shipped, and was further adversely affected by the reversal
adjustment.
|
Three Months Ended |
|
|
Jun 30, 2023 |
Mar 31, 2023 |
+increase/ |
|
3Q23 |
2Q23 |
-decrease |
Broadband
segment revenue |
($0.3M) |
$1.6M |
-$1.9M |
Broadband
segment gross margin (b) |
N/A |
(112%) |
N/A |
Broadband
segment R&D expense |
$0.7M |
$0.5M |
+$0.2M |
Broadband segment gross profit less R&D expense |
($4.4M) |
($2.3M) |
-$2.1M |
Non-GAAP
Broadband segment gross margin (a) (b) |
N/A |
(104%) |
N/A |
Non-GAAP
Broadband segment R&D expense (a) |
$0.6M |
$0.5M |
+$0.1M |
Non-GAAP Broadband segment gross profit less R&D expense
(a) |
($4.1M) |
($2.1M) |
-$2.0M |
(a) Please refer to the schedules at the end of this press release
for GAAP to non-GAAP reconciliations and other information related
to non-GAAP financial measures.(b) Gross margin for the Broadband
segment is non-computable with the 3Q23 negative revenue. |
|
Business Outlook
The Company expects revenue for the fiscal fourth quarter (4Q23)
ending September 30, 2023 to be in the range of $25 million to $27
million. This excludes Non-Inertial Navigation revenue expected to
be recognized in 4Q23.
Conference Call
The Company will host a conference call to discuss its financial
results on Wednesday, August 9, 2023 at 8:00 a.m. ET (5:00 a.m.
PT). To participate in the conference call, click on the following
link (ten minutes prior to the call) to register:
https://register.vevent.com/register/BIbe2276382842455389518d3137000fd3.
Once registered, participants will have the option of: 1) dialing
in from their phone (using their PIN); or 2) clicking the “Call Me”
option to receive an automated call directly to their phone. The
call will be webcast live via the Company's investor website at
https://investor.emcore.com. Please go to the site beforehand to
register and download any necessary software. The webcast will be
available for replay beginning Wednesday, August 9, 2023, following
the conclusion of the call.
About EMCORE
EMCORE Corporation is a leading provider of inertial navigation
products for the aerospace and defense markets. We leverage
industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, and
Lithium Niobate 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 facilities in Alhambra, CA, Budd Lake, NJ,
Concord, CA, and Tinley Park, IL. Our manufacturing facilities
maintain ISO 9001 quality management certification, and we are
AS9100 aerospace quality certified at our facilities in Alhambra,
CA, Budd Lake, NJ, and Concord, CA. For further information
about EMCORE, please visit https://www.emcore.com.
Use of Non-GAAP Financial Measures
The Company conforms to U.S. Generally Accepted Accounting
Principles (“GAAP”) in the preparation of its financial statements.
We disclose supplemental non-GAAP earnings measures for gross
profit, gross margin, operating expenses, research and development
expenses, operating margin, and net loss, as well as adjusted
EBITDA. The Company has, regardless of result, applied consistent
rationale and methods when presenting supplemental non-GAAP
measures.
Management believes these supplemental non-GAAP measures reflect
the Company’s core ongoing operating performance and facilitates
comparisons across reporting periods. The Company uses these
measures when evaluating its financial results and for planning and
forecasting of future periods. We believe that these supplemental
non-GAAP measures are also useful to investors in assessing our
operating performance. While we believe in the usefulness of these
supplemental non-GAAP measures, there are limitations. Our non-GAAP
measures may not be reported by other companies in our industry
and/or 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 measures
as a supplement to GAAP and by providing the reconciliations to the
most comparable GAAP measure.
The schedules at the end of this press release reconcile the
Company’s non-GAAP measures to the most directly comparable GAAP
measure. The adjustments share one or more of the following
characteristics: they are unusual and the Company does not expect
them to recur in the ordinary course of its business, they do not
involve the expenditure of cash, they are unrelated to the ongoing
operation of the business in the ordinary course, or their
magnitude and timing is largely outside of the Company’s control.
An example of one item that regularly meets one or more of these
characteristics is stock-based compensation. There are also, from
time-to-time, other examples such as litigation-related expenses
(only after a legal matter has turned into active litigation) or
acquisition-related costs. For all reporting periods disclosed, the
Company has applied consistent rationale, method, and adjustments
in reconciling non-GAAP measures to the most directly comparable
GAAP measure.
Non-GAAP measures are not in accordance with or an alternative
to GAAP, nor are they meant to be considered in isolation or as a
substitute for comparable GAAP measures. Our disclosures of these
measures should be read only in conjunction with our financial
statements prepared in accordance with GAAP. Non-GAAP measures
should not be viewed as a substitute for the Company’s GAAP
results.
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
(“Exchange Act”). These forward-looking statements are 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, including expected revenue for 4Q23,
expectations regarding the sale of Broadband and defense
optoelectronics product lines, efforts regarding the potential sale
of our wafer fabrication facility, and statements about our future
results of operations and financial position, 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, future growth, 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) risks
related to the expected sale of our Broadband and defense
optoelectronics businesses and potential sale of our wafer
fabrication facility, including without limitation the failure to
successfully negotiate or execute definitive transaction
agreements, termination of definitive agreement prior to closing,
failure to achieve any anticipated proceeds from any such sale or
to fully realize the anticipated benefits of such a transaction,
even if the potential transaction occurs, diversion of management’s
time and attention from our remaining businesses to the sale of
such businesses, third party costs incurred by the Company related
to any such transaction, and risks associated with any liabilities
related to the transaction or any such assets or business that are
retained by the Company in any sale transaction; (b) any
disruptions to our operations as a result of our restructuring
activities; (c) risks related to costs and expenses incurred in
connection with restructuring activities and anticipated
operational costs savings arising from the restructuring actions;
(d) risks related to the loss of personnel; (e) risks related to
customer and vendor relationships and contractual obligations with
respect to the shutdown of the Broadband business segment and the
discontinuance of its defense optoelectronics product line; (f)
risks and uncertainties related to our current expectations with
respect to potential revenues arising from last time buys by our
Broadband and Defense Optoelectronics customers; (g) risks related
to the closing of the manufacturing support and engineering center
in China; (h) rapidly evolving markets for the Company's products
and uncertainty regarding the development of these markets; (i) 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; (j) delays and other difficulties in commercializing
new products; (k) 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; (l) uncertainties concerning
the availability and cost of commodity materials and specialized
product components that we do not make internally; (m) actions by
competitors; (n) risks and uncertainties related to the outcome of
legal proceedings; (o) risks and uncertainties related to
applicable laws and regulations; (p) acquisition-related risks,
including that (i) the revenues and net operating results obtained
from our recent acquisitions may not meet our expectations, (ii)
the costs and cash expenditures for integration of our recent
acquisitions may be higher than expected, (iii) we may not
recognize the anticipated synergies from our recent acquisitions,
(iv) there could be losses and liabilities arising from these
acquisitions that we will not be able to recover from any source,
and (v) we may not realize sufficient scale from these acquisitions
and will need to take additional steps, including making additional
acquisitions, to achieve our growth objectives; (q) risks related
to our ability to obtain capital; (r) the effect of component
shortages and any alternatives thereto; (s) risks and uncertainties
related to manufacturing and production capacity; (t) risks related
to the conversion of order backlog into product revenue; and (u)
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, 2022, 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 do not intend 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
Balance Sheets(unaudited) |
|
|
|
|
|
June 30, |
|
September 30, |
(in thousands) |
2023 |
|
2022 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
19,717 |
|
|
$ |
25,625 |
|
Restricted cash |
|
495 |
|
|
|
520 |
|
Accounts receivable, net of credit loss of $363 and $337,
respectively |
|
17,451 |
|
|
|
18,073 |
|
Contract assets |
|
5,163 |
|
|
|
4,560 |
|
Inventory |
|
35,833 |
|
|
|
37,035 |
|
Prepaid expenses |
|
3,378 |
|
|
|
4,061 |
|
Other current assets |
|
2,431 |
|
|
|
3,063 |
|
Total current assets |
|
84,468 |
|
|
|
92,937 |
|
Property, plant, and
equipment, net |
|
24,388 |
|
|
|
37,867 |
|
Goodwill |
|
19,043 |
|
|
|
17,894 |
|
Operating lease right-of-use
assets |
|
26,534 |
|
|
|
23,243 |
|
Other intangible assets,
net |
|
15,294 |
|
|
|
14,790 |
|
Other non-current assets |
|
2,326 |
|
|
|
2,351 |
|
Total assets |
$ |
172,053 |
|
|
$ |
189,082 |
|
LIABILITIES and SHAREHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
11,164 |
|
|
$ |
12,729 |
|
Accrued expenses and other current liabilities |
|
10,775 |
|
|
|
8,124 |
|
Contract liabilities |
|
1,359 |
|
|
|
5,300 |
|
Loan payable - current |
|
852 |
|
|
|
852 |
|
Operating lease liabilities - current |
|
2,740 |
|
|
|
2,213 |
|
Total current liabilities |
|
26,890 |
|
|
|
29,218 |
|
Line of credit |
|
6,485 |
|
|
|
9,599 |
|
Loan payable -
non-current |
|
4,403 |
|
|
|
5,042 |
|
Operating lease liabilities -
non-current |
|
24,737 |
|
|
|
21,625 |
|
Asset retirement
obligations |
|
4,143 |
|
|
|
4,664 |
|
Other long-term
liabilities |
|
8 |
|
|
|
106 |
|
Total liabilities |
|
66,666 |
|
|
|
70,254 |
|
Commitments and
contingencies |
|
|
|
Shareholders’
equity: |
|
|
|
Common stock, no par value, 100,000 shares authorized; 61,059
shares issued and 54,153 shares outstanding as of June 30, 2023;
44,497 shares issued and 37,591 shares outstanding as of September
30, 2022 |
|
807,605 |
|
|
|
787,347 |
|
Treasury stock at cost; 6,906 shares as of June 30, 2023 and
September 30, 2022 |
|
(47,721 |
) |
|
|
(47,721 |
) |
Accumulated other comprehensive income |
|
1,380 |
|
|
|
1,301 |
|
Accumulated deficit |
|
(655,877 |
) |
|
|
(622,099 |
) |
Total shareholders’ equity |
|
105,387 |
|
|
|
118,828 |
|
Total liabilities and shareholders’ equity |
$ |
172,053 |
|
|
$ |
189,082 |
|
|
|
|
|
|
|
|
|
|
EMCORE CORPORATIONCondensed Consolidated
Statements of Operations and Comprehensive
Loss(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
(in thousands, except for per
share data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
$ |
26,698 |
|
|
$ |
23,675 |
|
|
$ |
78,471 |
|
|
$ |
98,561 |
|
Cost of revenue |
|
23,198 |
|
|
|
19,777 |
|
|
|
68,201 |
|
|
|
69,849 |
|
Gross profit |
|
3,500 |
|
|
|
3,898 |
|
|
|
10,270 |
|
|
|
28,712 |
|
Operating
expense: |
|
|
|
|
|
|
|
Selling, general, and administrative |
|
6,452 |
|
|
|
7,800 |
|
|
|
26,347 |
|
|
|
22,550 |
|
Research and development |
|
5,171 |
|
|
|
4,513 |
|
|
|
16,319 |
|
|
|
13,675 |
|
Severance |
|
1,838 |
|
|
|
— |
|
|
|
2,296 |
|
|
|
1,318 |
|
Gain on sale of assets |
|
— |
|
|
|
(1,318 |
) |
|
|
(1,147 |
) |
|
|
(1,919 |
) |
Total operating expense |
|
13,461 |
|
|
|
10,995 |
|
|
|
43,815 |
|
|
|
35,624 |
|
Operating loss |
|
(9,961 |
) |
|
|
(7,097 |
) |
|
|
(33,545 |
) |
|
|
(6,912 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest (expense) income, net |
|
(219 |
) |
|
|
9 |
|
|
|
(682 |
) |
|
|
(14 |
) |
Foreign exchange gain (loss) |
|
321 |
|
|
|
(185 |
) |
|
|
442 |
|
|
|
(160 |
) |
Other income (expense) |
|
31 |
|
|
|
(349 |
) |
|
|
184 |
|
|
|
(349 |
) |
Total other income (expense) |
|
133 |
|
|
|
(525 |
) |
|
|
(56 |
) |
|
|
(523 |
) |
Loss before income tax expense |
|
(9,828 |
) |
|
|
(7,622 |
) |
|
|
(33,601 |
) |
|
|
(7,435 |
) |
Income tax expense |
|
(29 |
) |
|
|
(27 |
) |
|
|
(177 |
) |
|
|
(25 |
) |
Net loss |
$ |
(9,857 |
) |
|
$ |
(7,649 |
) |
|
$ |
(33,778 |
) |
|
$ |
(7,460 |
) |
Foreign exchange translation
adjustment |
|
(134 |
) |
|
|
69 |
|
|
|
(79 |
) |
|
|
91 |
|
Comprehensive loss |
$ |
(9,991 |
) |
|
$ |
(7,580 |
) |
|
$ |
(33,857 |
) |
|
$ |
(7,369 |
) |
Per share
data: |
|
|
|
|
|
|
|
Net loss per basic share |
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.20 |
) |
Weighted-average number of
basic shares outstanding |
|
53,926 |
|
|
|
37,425 |
|
|
|
45,546 |
|
|
|
37,197 |
|
Net loss per diluted
share |
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.20 |
) |
Weighted-average number of
diluted shares outstanding |
|
53,926 |
|
|
|
37,425 |
|
|
|
45,546 |
|
|
|
37,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMCORE
CORPORATIONReconciliations of GAAP to Non-GAAP
Financial Measures(unaudited)
|
Three Months Ended |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
(in thousands, except for
percentages) |
3Q23 |
|
2Q23 |
Gross profit |
$ |
3,500 |
|
|
$ |
3,711 |
|
Gross margin |
|
13 |
% |
|
|
14 |
% |
Stock-based compensation
expense |
|
436 |
|
|
|
331 |
|
Asset retirement obligation
(amortization) |
|
51 |
|
|
|
(18 |
) |
Amortization of intangible
assets |
|
353 |
|
|
|
287 |
|
Non-GAAP gross
profit |
$ |
4,340 |
|
|
$ |
4,311 |
|
Non-GAAP gross margin |
|
16 |
% |
|
|
16 |
% |
|
Three Months Ended |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
(in thousands) |
3Q23 |
|
2Q23 |
Operating expense |
$ |
13,461 |
|
|
$ |
15,755 |
|
Stock-based compensation
expense |
|
(1,277 |
) |
|
|
(1,204 |
) |
Severance (expense) income |
|
(1,838 |
) |
|
|
17 |
|
Loss on sale of assets |
|
— |
|
|
|
(24 |
) |
Transition-related expense |
|
(323 |
) |
|
|
(1,264 |
) |
Litigation-related proceeds
(expense) |
|
1,086 |
|
|
|
(884 |
) |
Non-GAAP operating
expense |
$ |
11,109 |
|
|
$ |
12,396 |
|
|
Three Months Ended |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
(in thousands, except for
percentages) |
3Q23 |
|
2Q23 |
Operating profit |
$ |
(9,961 |
) |
|
$ |
(12,044 |
) |
Operating margin |
|
(37 |
%) |
|
|
(45 |
%) |
Stock-based compensation
expense |
|
1,713 |
|
|
|
1,535 |
|
Asset retirement obligation
accretion (amortization) |
|
51 |
|
|
|
(18 |
) |
Amortization of acquired
intangibles |
|
353 |
|
|
|
287 |
|
Severance expense
(income) |
|
1,838 |
|
|
|
(17 |
) |
Loss on sale of assets |
|
— |
|
|
|
24 |
|
Transition-related
expense |
|
323 |
|
|
|
1,264 |
|
Litigation-related (proceeds)
expense |
|
(1,086 |
) |
|
|
884 |
|
Non-GAAP operating
profit |
$ |
(6,769 |
) |
|
$ |
(8,085 |
) |
Non-GAAP operating margin |
|
(25 |
%) |
|
|
(30 |
%) |
Depreciation expense |
|
2,431 |
|
|
|
1,566 |
|
Adjusted
EBITDA |
$ |
(4,338 |
) |
|
$ |
(6,519 |
) |
Adjusted EBITDA % |
|
(16 |
%) |
|
|
(24 |
%) |
|
Three Months Ended |
|
Jun 30, 2023 |
|
Mar 31, 2023 |
(in thousands, except for per
share data and percentages) |
3Q23 |
|
2Q23 |
Net loss |
$ |
(9,857 |
) |
|
$ |
(12,228 |
) |
Net loss per share basic and
diluted |
$ |
(0.18 |
) |
|
$ |
(0.27 |
) |
Stock-based compensation
expense |
|
1,713 |
|
|
|
1,535 |
|
Asset retirement obligation
accretion (amortization) |
|
51 |
|
|
|
(18 |
) |
Amortization of intangible
assets |
|
353 |
|
|
|
287 |
|
Severance expense
(income) |
|
1,838 |
|
|
|
(17 |
) |
Loss on sale of assets |
|
— |
|
|
|
24 |
|
Transition-related
expense |
|
323 |
|
|
|
1,264 |
|
Litigation-related (proceeds)
expense |
|
(1,086 |
) |
|
|
884 |
|
Other income |
|
(31 |
) |
|
|
(46 |
) |
Foreign exchange gain |
|
(321 |
) |
|
|
(46 |
) |
Income tax expense |
|
29 |
|
|
|
54 |
|
Non-GAAP net
loss |
$ |
(6,988 |
) |
|
$ |
(8,307 |
) |
Non-GAAP net loss per share
basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.18 |
) |
Interest expense, net |
|
219 |
|
|
|
222 |
|
Depreciation expense |
|
2,431 |
|
|
|
1,566 |
|
Adjusted
EBITDA |
$ |
(4,338 |
) |
|
$ |
(6,519 |
) |
Adjusted EBITDA % |
|
(16 |
%) |
|
|
(24 |
%) |
|
Three Months Ended |
|
|
Three Months Ended |
(in thousands,
except for percentages) |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
|
Jun 30, 2023 |
|
Mar 31, 2023 |
3Q23 |
|
2Q23 |
|
|
3Q23 |
|
2Q23 |
Aerospace and
Defense |
|
|
|
|
Broadband |
|
|
|
Gross profit |
$ |
7,163 |
|
|
$ |
5,515 |
|
|
Gross profit |
$ |
(3,663 |
) |
|
$ |
(1,804 |
) |
Gross margin |
|
27 |
% |
|
|
22 |
% |
|
Gross margin |
N/A |
|
|
(112 |
%) |
Stock-based compensation
expense |
|
327 |
|
|
|
249 |
|
|
Stock-based compensation
expense |
|
109 |
|
|
|
82 |
|
Asset retirement obligation
accretion |
|
39 |
|
|
|
(30 |
) |
|
Asset retirement obligation
accretion |
|
12 |
|
|
|
12 |
|
Amortization of intangible
assets |
|
320 |
|
|
|
254 |
|
|
Amortization of intangible
assets |
|
33 |
|
|
|
33 |
|
Non-GAAP gross
profit |
$ |
7,849 |
|
|
$ |
5,988 |
|
|
Non-GAAP gross
profit |
$ |
(3,509 |
) |
|
$ |
(1,677 |
) |
Non-GAAP gross margin |
|
29 |
% |
|
|
24 |
% |
|
Non-GAAP gross margin |
N/A |
|
|
(104 |
)% |
|
|
|
|
|
|
|
|
|
R&D
expense |
$ |
4,448 |
|
|
$ |
5,253 |
|
|
R&D
expense |
$ |
723 |
|
|
$ |
544 |
|
Stock-based compensation
expense |
|
(191 |
) |
|
|
(176 |
) |
|
Stock-based compensation
expense |
|
(106 |
) |
|
|
(77 |
) |
Non-GAAP R&D
expense |
$ |
4,257 |
|
|
$ |
5,077 |
|
|
Non-GAAP R&D
expense |
$ |
617 |
|
|
$ |
467 |
|
Non-GAAP gross profit
less R&D expense |
$ |
3,592 |
|
|
$ |
911 |
|
|
Non-GAAP gross profit
less R&D expense |
$ |
(4,126 |
) |
|
$ |
(2,144 |
) |
|
Three Months Ended |
(in thousands,
except for percentages) |
Jun 30, 2023 |
|
Mar 31, 2023 |
3Q23 |
|
2Q23 |
Inertial
Navigation |
|
|
|
Gross profit |
$ |
7,260 |
|
|
$ |
4,861 |
|
Gross margin |
|
27 |
% |
|
|
20 |
% |
Stock-based compensation
expense |
|
264 |
|
|
|
211 |
|
Asset retirement obligation
accretion |
|
39 |
|
|
|
(30 |
) |
Amortization of intangible
assets |
|
320 |
|
|
|
254 |
|
Non-GAAP gross
profit |
$ |
7,883 |
|
|
$ |
5,296 |
|
Non-GAAP gross margin |
|
30 |
% |
|
|
22 |
% |
|
|
|
|
R&D
expense |
$ |
4,345 |
|
|
$ |
4,882 |
|
Stock-based compensation
expense |
|
(146 |
) |
|
|
(143 |
) |
Non-GAAP R&D
expense |
$ |
4,199 |
|
|
$ |
4,739 |
|
Non-GAAP gross profit
less R&D expense |
$ |
3,684 |
|
|
$ |
557 |
|
|
|
|
|
|
|
|
|
Contact:EMCORE CorporationTom Minichiello(626)
293-3400investor@emcore.com
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