EMCORE Corporation Announces Financial Results for Fiscal Second Quarter

EMCORE Corporation (NASDAQ:EMKR), a leading provider of advanced mixed signal optics products announced financial results for its second quarter ended March 31, 2018.

The company had a consolidated revenue of $18.6 million which is a 22.5 percent decrease from the prior quarter. Emcore’s consolidated GAAP gross margin was 26.6 percent representing a decrease from the 32.9 percent gross margin in the previous quarter.

As quoted in the press release:

Jeffrey Rittichier, EMCORE’s President and CEO commented, “Despite solid continued MSO capital expenditures, customer inventory adjustments led to an order shortfall this quarter for our Cable TV business. However, we saw good design win traction with our LEML products, an uptick in demand from our other CATV customers and good performance in line with our expectations in our Chip and Navigation businesses.”

Financial Highlights – Fiscal Second Quarter Ended March 31, 2018

Financial Highlights		For the Three Months Ended
(in thousands)		March 31, 2018				December 31, 2017				March 31, 2017
Revenue		$	18,623			$	24,036			$	32,591
GAAP Gross Profit		$	4,947			$	7,914			$	11,038
Non-GAAP Gross Profit		$	5,078			$	8,070			$	11,202
GAAP Operating (loss) income		$	(3,929	)		$	(812	)		$	1,757
Non-GAAP Operating (loss) income		$	(2,235	)		$	608			$	3,703
GAAP pre-tax (loss) income from continuing operations		$	(3,240	)		$	(415	)		$	1,847
Non-GAAP pre-tax (loss) income from continuing operations		$	(2,072	)		$	719			$	3,749
GAAP pre-tax EPS from continuing operations – per diluted share		$	(0.12	)		$	(0.02	)		$	0.07
Non-GAAP pre-tax EPS from continuing operations – per diluted share		$	(0.08	)		$	0.03			$	0.14

Financial Statement Highlights for the Second Quarter of Fiscal 2018:

• Consolidated Non-GAAP gross margin was 27.3%, representing a decrease from 33.6% in the prior quarter
• Consolidated GAAP operating margin was (21.1)%, representing a decrease from (3.4)% in the prior quarter
• Consolidated Non-GAAP operating margin was (12.0)%, representing a decrease from 2.5% in the prior quarter
• GAAP diluted pre-tax EPS from continuing operations of $(0.12), representing a decrease from $(0.02) in the prior quarter
• Non-GAAP diluted pre-tax EPS from continuing operations of $(0.08), representing a decrease from $0.03 in the prior quarter
• Cash and cash equivalents was $65.5 million at the end of the quarter, an increase of $1.3 million when compared to the end of the prior quarter

Business Outlook
The Company expects revenue for the fiscal third quarter ending June 30, 2018 to be in the range of $17 to $19 million.

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