Back to GetFilings.com



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended:  December 31, 2004
 
Commission File Number:  0-22175
 

 
EMCORE Corporation
(Exact name of Registrant as specified in its charter)

New Jersey
(State or other jurisdiction of incorporation or organization)

22-2746503
(IRS Employer Identification No.)

145 Belmont Drive, Somerset, NJ  08873
(Address of principal executive offices)

(732) 271-9090
(Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act).  Yes x No o

The number of shares outstanding of the registrant’s common stock, no par value, as of January 31, 2005 was 47,269,689.

 
     
 

TABLE OF CONTENTS
 
 
PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
ITEM 4. CONTROLS AND PROCEDURES.
 
 
PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
ITEM 5. OTHER INFORMATION.
ITEM 6. EXHIBITS.

 
SIGNATURES

 
     
 

PART I.  FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS.
 
EMCORE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended December 31, 2004 and 2003
(in thousands, except (loss) income per share)
(unaudited)
 
   

Three Months Ended
December 31,

  
     
2004
    
2003
  
               
Revenue
  
$
26,964
  
$
23,125
  
Cost of revenue
    
24,889
    
19,945
  
Gross profit
    
2,075
    
3,180
  
               
Operating expenses:
              
Selling, general and administrative
    
5,088
    
5,307
  
Research and development
    
5,059
    
6,046
  
Severance charges
    
472
    
-
  
Total operating expenses
    
10,619
    
11,353
  
               
Operating loss
    
(8,544
)
  
(8,173
)
               
Other (income) expenses:
              
Interest income
    
(233
)
  
(158
)
Interest expense
    
1,202
    
2,025
  
Equity in net income of GELcore
    
(372
)
  
(267
)
Total other expenses
    
597
    
1,600
  
               
Loss from continuing operations
    
(9,141
)
  
(9,773
)
               
Discontinued operations:
              
Loss from discontinued operations
    
-
    
(1,697
)
Gain on disposal of discontinued operations
    
-
    
19,584
  
Income from discontinued operations
    
-
    
17,887
  
               
Net (loss) income
  
$
(9,141
)
$
8,114
  
               
Per Share Data:
              
Basic per share data:
              
Loss from continuing operations
  
$
(0.19
)
$
(0.26
)
Income from discontinued operations
    
-
    
0.47
  
Net (loss) income
  
$
(0.19
)
$
0.21
  
               
Diluted per share data:
              
Loss from continuing operations
  
$
(0.19
)
$
(0.25
)
Income from discontinued operations
    
-
    
0.45
  
Net (loss) income
  
$
(0.19
)
$
0.20
  
               
Weighted average number of common shares outstanding during the period:
              
Basic
    
46,994
    
37,862
  
Diluted
    
46,994
    
39,670
  
               

The accompanying notes are an integral part of these condensed consolidated financial statements.

 
     
 

EMCORE CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2004 and September 30, 2004
(in thousands)
(unaudited)

   
As of
December 31, 2004
  
As of
September 30, 2004
  
ASSETS
              
Current assets:
              
Cash and cash equivalents
  
$
11,926
  
$
19,422
  
Marketable securities
    
26,400
    
32,150
  
Accounts receivable, net
    
20,875
    
20,775
  
Accounts receivable, GELcore
    
205
    
215
  
Inventories, net
    
15,976
    
14,839
  
Prepaid expenses and other current assets
    
2,107
    
2,496
  
Total current assets
    
77,489
    
89,897
  
               
Property, plant and equipment, net
    
63,422
    
65,354
  
Goodwill
    
33,782
    
33,584
  
Intangible assets, net
    
4,798
    
5,177
  
Investments in GELcore
    
10,376
    
10,003
  
Other assets, net
    
10,095
    
9,228
  
Total assets
  
$
199,962
  
$
213,243
  
               
LIABILITIES & SHAREHOLDERS’ EQUITY
              
Current liabilities:
              
Accounts payable
  
$
14,325
  
$
16,064
  
Accrued expenses
    
11,927
    
15,078
  
Customer deposits
    
151
    
171
  
Capitalized lease obligation, current portion
    
37
    
43
  
Total current liabilities
    
26,440
    
31,356
  
               
Convertible subordinated notes
    
96,051
    
96,051
  
Capitalized lease obligation, net of current portion
    
20
    
27
  
Total liabilities
    
122,511
    
127,434
  
               
Commitments and contingencies (see note 7)
              
               
Shareholders’ equity:
              
Preferred stock, $0.0001 par, 5,882 shares authorized, no shares outstanding
    
-
    
-
  
Common stock, no par value, 100,000 shares authorized,
47,246 shares issued and 47,226 outstanding at December 31, 2004;
46,951 shares issued and 46,931 outstanding at September 30, 2004
    
390,499
    
389,750
  
Accumulated deficit
    
(312,005
)
  
(302,864
)
Accumulated other comprehensive loss
    
(111
)
  
(111
)
Shareholders’ notes receivable
    
-
    
(34
)
Treasury stock, at cost; 20 shares