Group 1 - Emcore reported a quarterly loss of $0.49 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -716.67% [1] - The company's revenues for the quarter ended June 2024 were $20.44 million, exceeding the Zacks Consensus Estimate by 2.18%, but down from $26.7 million a year ago [2] - Emcore shares have declined approximately 77.7% year-to-date, contrasting with the S&P 500's gain of 8.7% [3] Group 2 - The earnings outlook for Emcore is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.03 on revenues of $21.3 million, and -$0.21 on revenues of $85 million for the current fiscal year [7] - The Zacks Industry Rank places Electronics - Manufacturing Machinery in the top 44% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

[EMCORE Fiscal 2024 Third Quarter Results](index=1&type=section&id=EMCORE_Fiscal_2024_Third_Quarter_Results) EMCORE reported strong Q3 2024 financial results, highlighting improved gross margins, reduced operating expenses, and a positive outlook for Q4 [Company Information and Disclosures](index=1&type=section&id=Company_Information_and_Disclosures) EMCORE provides inertial navigation products, with disclosures on conference calls, forward-looking statements, and associated risks - EMCORE is a provider of inertial navigation solutions for the aerospace and defense industry, using PIC, Quartz MEMS, and Lithium Niobate chip-level technology[1](index=1&type=chunk)[4](index=4&type=chunk) - A conference call to discuss the financial results is scheduled for August 7, 2024, at 8:00 a.m. ET[3](index=3&type=chunk) - The report includes forward-looking statements and warns of risks including ability to obtain capital, restructuring challenges, loss of personnel, and competition[8](index=8&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - The company explains its use of non-GAAP measures to reflect core ongoing operating performance, noting these are supplemental to GAAP and may not be comparable to other companies' measures[4](index=4&type=chunk)[5](index=5&type=chunk) [Financial Highlights and Business Outlook](index=1&type=section&id=Financial_Highlights_and_Business_Outlook) EMCORE reported strong Q3 2024 revenue and improved margins, with a positive outlook for Q4 revenue and continued cost reductions Q3 FY2024 vs Q2 FY2024 Financial Highlights (in millions) | Metric | Q3 2024 (ended Jun 30, 2024) | Q2 2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | Revenue | $20.4M | $19.6M | +$0.8M | | Gross Margin | 25% | 17% | +8% | | Non-GAAP Gross Margin | 24% | 15% | +9% | | Non-GAAP Operating Expenses | $9.1M | $9.8M | -$0.7M | | Net Loss on Continuing Operations | ($14.5M) | ($7.8M) | -$6.7M | | Non-GAAP Net Loss on Continuing Operations | ($4.4M) | ($7.0M) | +$2.6M | | Adjusted EBITDA | ($3.6M) | ($5.8M) | +$2.2M | | Ending Cash and Cash Equivalents | $9.0M | $12.0M | -$3.0M | - Revenue strength in Q3 2024 was attributed to record high shipments from the Concord site and solid performance at the Tinley Park operation[2](index=2&type=chunk) - The company's restructuring and asset impairment charges in Q3 2024 totaled **$4.3 million**[2](index=2&type=chunk) - For Q4 2024, revenue is projected to be in the range of **$20 million to $22 million**[2](index=2&type=chunk)[8](index=8&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated_Financial_Statements) This section presents the unaudited condensed consolidated balance sheets and statements of operations for the specified periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed_Consolidated_Balance_Sheets) Total assets, liabilities, and shareholders' equity decreased from September 2023 to June 2024, primarily due to reduced cash Balance Sheet Comparison (in thousands) | Account | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,477 | $26,211 | | Total current assets | $67,729 | $92,386 | | Total assets | $108,441 | $143,913 | | Total current liabilities | $23,524 | $28,791 | | Total liabilities | $54,089 | $63,623 | | Total shareholders' equity | $54,352 | $80,290 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed_Consolidated_Statements_of_Operations) Q3 2024 revenue decreased, and net loss from continuing operations significantly increased due to restructuring and impairment charges Statement of Operations Summary - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $20,435 | $26,718 | | Gross profit | $5,013 | $7,260 | | Total operating expense | $14,276 | $10,070 | | Operating loss | ($9,263) | ($2,810) | | Net loss from continuing operations | ($14,527) | ($3,028) | | Net loss from continuing operations per share | ($1.60) | ($0.56) | Statement of Operations Summary - Nine Months Ended June 30 (in thousands, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $64,192 | $70,947 | | Gross profit | $14,348 | $16,500 | | Operating loss | ($21,196) | ($19,914) | | Net loss from continuing operations | ($26,665) | ($20,566) | | Net loss from continuing operations per share | ($2.96) | ($4.52) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation_of_GAAP_to_Non-GAAP_Financial_Measures) This section reconciles GAAP to non-GAAP financial measures, providing adjusted gross profit, operating expenses, net loss, and Adjusted EBITDA GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Gross Profit | $5,013 | $3,247 | | Non-GAAP Gross Profit | $4,824 | $2,862 | | GAAP Gross Margin | 25% | 17% | | Non-GAAP Gross Margin | 24% | 15% | GAAP to Non-GAAP Operating Expense Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Operating Expense | $14,276 | $10,870 | | Non-GAAP Operating Expense | $9,071 | $9,785 | GAAP Net Loss to Non-GAAP Net Loss and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Net Loss from Continuing Operations | ($14,527) | ($7,775) | | Non-GAAP Net Loss from Continuing Operations | ($4,426) | ($6,990) | | Adjusted EBITDA | ($3,577) | ($5,769) |

At JNC, EMCORE will showcase its comprehensive navigation & inertial sensing product line and be meeting with customers in booth #315, June 4-5. Highlights will include the TAC-450 series of photonic FOGs and IMUs, the TACNAV 3D inertial navigation system for assured PNT, and our new TAC-440 MEMS IMU, the world's smallest 1°/hour IMU. "We are continually demonstrating that our products provide progressively higher performance with lower CSWaP than competing alternatives and are looking forward to presenting ...

BUDD LAKE, NJ, May 23, 2024 (GLOBE NEWSWIRE) -- EMCORE Corporation (Nasdaq: EMKR), the world's largest independent provider of inertial navigation solutions to the aerospace and defense industry, today announced personnel and expense reduction actions, including the planned full closure of the Alhambra, CA site. Personnel reductions are expected to result in annualized savings of approximately $17 million and are the first stage of a restructuring program that is expected to include additional actions desig ...

BUDD LAKE, NJ, May 23, 2024 (GLOBE NEWSWIRE) -- EMCORE Corporation (Nasdaq: EMKR), the world's largest independent provider of inertial navigation solutions to the aerospace and defense industry, today announced personnel and expense reduction actions, including the planned full closure of the Alhambra, CA site. Personnel reductions are expected to result in annualized savings of approximately $17 million and are the first stage of a restructuring program that is expected to include additional actions desig ...

Core Viewpoint - Emcore (EMKR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][2][10] Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][3] - A company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with its stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [3] Emcore's Earnings Outlook - For the fiscal year ending September 2024, Emcore is expected to earn -$0.21 per share, reflecting a 93.6% change from the previous year's reported figure [7] - Over the past three months, the Zacks Consensus Estimate for Emcore has increased by 86.1%, indicating a positive trend in earnings expectations [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6] - Emcore's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [10]

Cautionary Note Regarding Forward-Looking Statements This report contains forward-looking statements concerning future results, plans, and business trends, subject to numerous risks and uncertainties that could cause actual results to differ materially from projections - Key risk factors highlighted include the company's ability to continue as a **going concern**, risks related to the **Chips Transaction** and the **Forbearance Agreement** with its new lenders, costs and benefits of restructuring, potential loss of personnel, and challenges in commercializing new products[9](index=9&type=chunk) PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, reflect a **net loss of $8.5 million**, reduced cash, and reclassification of the chips business, with notes detailing strategic shifts and **going concern** doubt [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The financial statements for the quarter ended March 31, 2024, show a **net loss of $8.5 million**, reduced cash, a decrease in total assets from **$143.9 million** to **$121.0 million**, and quarterly revenue of **$19.6 million**, down from **$24.3 million** Condensed Consolidated Balance Sheet Data (in thousands) | | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,495 | $26,211 | | Total current assets | $73,782 | $92,386 | | Total assets | $120,997 | $143,913 | | Total current liabilities | $22,543 | $28,791 | | Total liabilities | $53,662 | $63,623 | | Total shareholders' equity | $67,335 | $80,290 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Revenue | $19,634 | $24,250 | | Gross profit | $3,247 | $4,861 | | Operating loss | $(7,623) | $(9,134) | | Net loss from continuing operations | $(7,775) | $(9,366) | | Net loss | $(8,495) | $(12,228) | | Net loss per share, basic and diluted | $(0.95) | $(2.70) | Condensed Consolidated Statements of Cash Flows (in thousands) | | Six Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,691) | $(22,789) | | Net cash provided by investing activities | $739 | $9,480 | | Net cash (used in) provided by financing activities | $(2,764) | $12,012 | | Net decrease in cash, cash equivalents, and restricted cash | $(14,716) | $(1,159) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's transition to an Inertial Navigation business, **substantial doubt** about its **going concern** ability, the **Forbearance Agreement** with **Hale Capital**, a **10-for-1 reverse stock split**, and the **Resilience Litigation** settlement of approximately **$1.8 million** - The company has completed its multi-year transition to an inertial navigation company following the sales of its cable TV, wireless, sensing, defense optoelectronics, and chips business lines[23](index=23&type=chunk) - **Substantial doubt** exists about the company's ability to continue as a **going concern**, citing a **net loss of $8.5 million** for the quarter and net cash outflows from continuing operations of **$9.7 million** for the six months ended March 31, 2024[27](index=27&type=chunk)[28](index=28&type=chunk) - On April 30, 2024, the company sold its discontinued chips business line to **HieFo Corporation** for **$2.92 million** in cash and assumption of certain liabilities, following the October 2023 divestiture of its cable TV, wireless, and other business lines to **Photonics Foundries, Inc.**[35](index=35&type=chunk)[39](index=39&type=chunk) - A **10-for-1 reverse stock split** of the company's common stock became effective on April 1, 2024, with all share figures in the report presented on a post-split basis[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's transformation into an aerospace and defense provider, detailing recent divestitures, a **reverse stock split**, and a new **Forbearance Agreement**, with operations showing a **19%** revenue decline but reduced operating loss due to cost-cutting, while addressing **going concern** risk and liquidity measures [Business Overview and Recent Developments](index=28&type=section&id=Business%20Overview%20and%20Recent%20Developments) EMCORE finalized its shift to an Inertial Navigation business, marked by a **10-for-1 reverse stock split**, a **Forbearance Agreement** with **Hale Capital**, the sale of its chips business to **HieFo** for **$2.92 million**, and the divestiture of broadband businesses to **Photonics Foundries** as part of a major restructuring - A **10-for-1 reverse stock split** was effective on April 1, 2024[104](index=104&type=chunk) - On April 29, 2024, the company entered into a **Forbearance Agreement** with new lender **Hale Capital**, which acquired its credit facility, providing temporary relief from certain defaults, setting a fixed interest rate of **12%**, and allowing for payment-in-kind interest[107](index=107&type=chunk) - The company sold its discontinued chips business line to **HieFo Corporation** for **$2.92 million** in cash on April 30, 2024[114](index=114&type=chunk) - The April 2023 restructuring program included the shutdown of the Broadband business segment, resulting in the elimination of approximately **24%** of the total workforce and a **25%** reduction in facility footprint[120](index=120&type=chunk)[141](index=141&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2024, revenue decreased **19.0%** to **$19.6 million** due to program termination, gross profit fell **33.2%** to **$3.2 million**, but cost reductions led to a **22.3%** decrease in operating expenses, resulting in a smaller operating loss of **$7.6 million** Results of Operations Comparison (in thousands) | | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $19,634 | $24,250 | $(4,616) | (19.0)% | | Gross profit | $3,247 | $4,861 | $(1,614) | (33.2)% | | Total operating expense | $10,870 | $13,995 | $(3,125) | (22.3)% | | Operating loss | $(7,623) | $(9,134) | $1,511 | 16.5% | - The **$4.6 million** (**19.0%**) decrease in quarterly revenue was primarily due to a **$3.9 million** reduction from Budd Lake operations following the termination of the **TAIMU program** by a customer[127](index=127&type=chunk) - SG&A expenses decreased by **$3.1 million** (**33.6%**) and R&D expenses decreased by **$1.2 million** (**23.7%**) for the quarter, driven by headcount reductions and cost management[132](index=132&type=chunk)[135](index=135&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces **significant liquidity pressure** with cash at **$12.0 million**, leading to **substantial doubt** about its **going concern** ability, despite actions like the **Forbearance Agreement**, **Chips Transaction** proceeds, and a **$15.6 million** equity offering aimed at securing resources for the next 12 months - As of March 31, 2024, cash and cash equivalents totaled **$12.0 million**, including **$0.5 million** in restricted cash[139](index=139&type=chunk) - The company has taken several actions to manage liquidity, including entering the **Forbearance Agreement**, completing the **Chips Transaction** for **$2.92 million** in cash, and raising **$15.6 million** in an August 2023 equity offering[140](index=140&type=chunk) - Despite liquidity actions, **substantial doubt** about the company's ability to continue as a **going concern** exists, and failure to execute its plans or comply with its credit agreement could impair operations[141](index=141&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of March 31, 2024, disclosure controls and procedures were **not effective** due to a **material weakness** in internal control over financial reporting related to ineffective communication for new business arrangements, with remediation efforts underway - A **material weakness** in internal control over financial reporting was identified, stemming from ineffective communication that failed to ensure new or novel arrangements were reviewed for proper technical accounting[153](index=153&type=chunk) - This control deficiency resulted in a correctable error related to the accounting for certain insurance premium and supplier financing agreements, which did not cause a material misstatement in previously filed financial statements[154](index=154&type=chunk) - Remediation efforts are underway and focus on clarifying company policies and training employees on the importance of elevating new arrangements for technical accounting oversight[154](index=154&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the financial statements, detailing legal matters, primarily the **Resilience Litigation** which was settled in April 2023 with payments totaling approximately **$1.8 million** - The company is subject to various legal proceedings arising in the ordinary course of business[76](index=76&type=chunk)[156](index=156&type=chunk) - The **Resilience Litigation** was settled in April 2023, requiring EMCORE to make payments totaling approximately **$1.8 million**, which were completed by December 2023[81](index=81&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new risks associated with its secured credit facility, where restrictive covenants and the temporary **Forbearance Agreement** expiring **May 31, 2024**, create a **significant risk of default** and debt **acceleration**, potentially threatening its **going concern** ability - The company's secured credit facility contains financial and restrictive covenants that, if violated, could result in the **acceleration** of outstanding debt[158](index=158&type=chunk) - A **Forbearance Agreement** with the new lender, **Hale**, is in effect but expires on **May 31, 2024**, and failure to comply with its terms or extend it could allow the lender to exercise **default** remedies[160](index=160&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) The company states that during the three months ended March 31, 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement for company securities - No director or officer of the Company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[162](index=162&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including the **Asset Purchase Agreement** with **HieFo Corporation**, the **Forbearance Agreement** with **Hale Capital**, and required Sarbanes-Oxley Act certifications - Key exhibits filed with this report include the **Asset Purchase Agreement** for the **Chips Transaction**, the **Forbearance Agreement** and Second Amendment to the Credit Agreement, and officer certifications[164](index=164&type=chunk)

Emcore (NASDAQ:EMKR) stock is falling hard on Thursday following the release of the navigation system and inertial sensing products company’s fiscal Q2 2024 earnings report. That comes alongside revenue of $19.6 million for the quarter. This is still well below the $23.86 million in revenue that Wall Street was expecting. It’s also down from the $24.25 million reported in the same period of the year prior. That’s despite the company reporting adjusted earnings per share of -8 cents during the quarter. This ...

Financial Data and Key Metrics Changes - Revenue for fiscal Q2 was $19.6 million, down from $24.1 million in the prior quarter, primarily due to delays in shipments and production issues [28][29] - Gross margin decreased to 15% in fiscal Q2 from 29% in the previous quarter, attributed to lower revenue and production yield issues [29] - Operating loss for the March quarter was $6.9 million compared to $2.6 million in the December quarter, with a negative adjusted EBITDA of $5.8 million [8][29] Business Line Data and Key Metrics Changes - The decline in revenue was significantly impacted by two torpedo programs, Mark 54 and Mark 48, where shipments were delayed [28] - Operating expenses increased to $9.8 million in fiscal Q2 from $9.5 million in fiscal Q1, with R&D expenses rising due to lower nonrecurring engineering revenue [29] Market Data and Key Metrics Changes - The company is experiencing a continued decline in revenue from its Budd Lake site following the cancellation of a project, which has affected overall performance [7][28] Company Strategy and Development Direction - The company is focused on bottom line growth and has initiated actions to right-size its cost structure, with a restructuring committee evaluating further actions [10][33] - The company aims to achieve adjusted cash flow breakeven by the end of the quarter ending September 2024, excluding restructuring costs [33][53] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with the second fiscal quarter results but is committed to taking necessary actions for future success [15][36] - Guidance for the June quarter anticipates revenue in the range of $19 million to $21 million, with expectations for a return to top line growth in the first half of fiscal '25 [31][36] Other Important Information - The company completed the sale of its discontinued Chips business line for $2.92 million, marking the exit from legacy businesses [27][32] - A new lender has been secured, providing additional flexibility and removing previous liquidity requirements [12][20] Q&A Session Summary Question: What is the current cash burn rate and urgency to rectify cash levels? - Management indicated a cash balance of $12 million at the end of March, with expectations to increase this to $14 million with additional proceeds from the sale of the fab [41][50] Question: What actions are being contemplated regarding cost restructuring and capital raises? - Management acknowledged the need for restructuring, which will incur expenses, and is exploring options to raise necessary cash [49][51] Question: Can you clarify the outlook for revenue and profitability? - Management clarified that the objective is to achieve cash flow breakeven by the end of September 2024, with revenue expected to remain flat in the second half of 2024 before returning to growth in early 2025 [53][54]

Emcore (EMKR) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 73.33%. A quarter ago, it was expected that this maker of components for communications gear and solar panels would post a loss of $0.20 per share when it actually produced a loss of $0.30, delivering a surprise of -50%.Over the la ...