EMCORE Complies With Nasdaq Marketplace Rule 4350(b)(1)(B)
Albuquerque, NM, January 6, 2009 — EMCORE Corporation (Nasdaq: EMKR) a leading provider of semiconductor-based components and subsystems for the broadband, fiber-optic, satellite and terrestrial solar power markets, announced that its financial statements for the fiscal year ended September 30, 2008, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 30, 2008, contain a going concern qualification from its independent accounting firm, Deloitte and Touche. As set forth in the Company's Form 10-K, the Company has implemented and is actively pursuing a number of cost reduction and capital raising initiatives to address its future liquidity requirements.
These initiatives include a realignment of the Company's businesses, structural cost and headcount reductions, reduction of capital spending, a greater emphasis on managing working capital, liquefying auction rate securities and pursuing certain asset sales including the recently completed sale of non-core equity interests for approximately $5.7 million in cash.
In addition to these measures, the Company expects to complete the sale of an additional $5.7 million in non-core equity interests by the end of the current fiscal quarter and is actively pursuing a number of capital raising initiatives including the sale of a minority ownership position in the Company's photovoltaics business as an initial step towards a potential spin off of the business. In October 2008, the Company announced the closing of a $25 million secured credit facility with Bank of America.
This announcement is being made in compliance with Nasdaq Rule 4350(b)(1)(B), which requires separate disclosure of a recent audit opinion that contains a going concern qualification. This announcement does not represent any change or amendment to the Company's 2008 financial statements or to its Annual Report on Form 10-K.
EMCORE Corporation is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. EMCORE's Fiber Optics unit offers optical components, subsystems and systems that enable the transmission of video, voice and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable television (CATV) and fiber-to-the-premises (FTTP) networks. EMCORE's Solar Power unit provides solar products for satellite and terrestrial applications. For satellite applications, EMCORE offers high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells and fully integrated solar panels. For terrestrial applications, EMCORE offers concentrating photovoltaic (CPV) systems for utility scale solar applications as well as offering its high-efficiency GaAs solar cells and CPV components for use in solar power concentrator systems. For specific information about our company, our products or the markets we serve, please visit our website at www.emcore.com.
Statements in this press release that are not historical facts, and the assumptions underlying such statements, constitute "forward- looking statements" and assumptions underlying "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 and involve a number of risks and uncertainties, including (a) the failure of the products mentioned (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, and (iii) to be successful under field conditions, (b) the failure of the products to be selected by prospective customers for large-scale deployment; © the ability of the Company's customers to attain their own financial and business objectives; and (d) the ability of the Company to successfully implement its cost reduction and capital raising initiatives. Readers should also review the risk factors set forth in EMCORE's Annual Report on Form 10-K for the fiscal year ended September 30, 2008. These forward-looking statements are made as of the date hereof, and EMCORE does not assume any obligation to update these statements.
Silvia M. Gentile