Small-Cap Stock Spotlight: EMCORE Corp. (EMKR) Shares Up following Q4 Results
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    Stock Alert for EMCORE Corp. (EMKR)

    EMCORE Corp. (EMKR) offers a broad portfolio of compound semiconductor based products for the broadband, fiber optics, space and solar power markets. The Company’s Fiber Optics segment 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. EMKR’s Solar Photovoltaics segment provides solar products for satellite and terrestrial applications. For space and satellite applications, the Company offers high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells, and fully integrated solar panels. For terrestrial applications, it 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.

    Share Statistics (28-June-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol EMKR Revenue, $Mn 176.36 191.28 8.5% 48.19 47.22 -2.0%
    Current price $2.59 Gross marg. -3.6% 26.5% -836.1% 32.7% 22.4% -31.5%
    52wk Range: $0.71-$3.25 Oper. margin -11.2% 8.9%
    Avg Vol (3m): 1,204,570 Net margin -78.7% -12.4% -84.2% -3.0% -11.0% 266.7%
    Market Cap. 228.79M
    Shares Outstanding 88.33M EPS, $ -0.89 -0.23 -74.2% -0.02 -0.09 350.0%

    Source: Reuters.com, SEC Filings.

    Recent News

    EMKR saw its shares gain nearly 12% on high volume yesterday on no news released. The stock reached an intraday high of $2.62 before closing at $2.61.  EMKR has been moving within a range of $0.71 – $3.25 over the past 52 weeks. The stock is currently trading above its 50-day moving average of $2.35 and above its 200-day moving average $2.10. Market capitalization currently stands at $228.79 million and it has 88.33 million outstanding shares.

    About two weeks ago, the semiconductor products maker announced the addition of the NEXTGEN OTP-DVI optical extension cards for the popular Optiva platform. EMKR said the product is a new technology platform designed to deliver high-bandwidth video over fiber optic transport systems for the broadcast and professional audio/visual market.

    The Company unveiled the product at the Infocomm 2011 show in Florida.

    EMKR last month announced that it signed a long-term supply agreement with Space Systems/Loral (SS/L), marking the Company’s second largest award in its history.  Under the deal, EMKR will manufacture and deliver high-efficiency, multi-junction solar cells for Space Systems/Loral’s commercial satellite programs.

    EMKR has delivered more than 800,000 solar cells to Space Systems/Loral over the past decade.  EMKR COO Christopher Larocca said the latest agreement further strengthens the companies’ successful long-term relationship.

    Visit EMKR at www.emcore.com

    Financial Summary

    EMKR reported a consolidated revenue of $47.2 million for the second quarter ended March 31, 2011, down 2% from the prior-year quarter and down 9% from the immediate preceding quarter. On a segment basis, revenue for the Fiber Optics segment was $30.0 million, a 1% decrease compared to the prior year and a 5% decrease compared to the immediate preceding quarter. Revenue for the Photovoltaics segment was $17.2 million, a 4% decrease compared to the prior year and a 17% decrease compared to the immediate preceding quarter.

    The Company reported a consolidated net loss $5.2 million for the quarter, which represents a $3.7 million increase in net loss when compared to the prior year and a $1.6 million increase in net loss when compared to the immediate preceding quarter. The consolidated net loss per share was $(0.06), which represents a $0.04 increase in net loss per share when compared to the prior year and a $0.02 increase in net loss per share when compared to the immediate preceding quarter. During the second quarter ended March 31, 2011, the Company recorded $0.6 million of non-operating expense related to the Company’s Suncore joint venture.

    Excluding certain non-cash and other adjustments, adjusted EBITDA for the second quarter ended March 31, 2011, was negative $2.3 million, which represents an additional loss of $5.6 million from the adjusted EBITDA reported for the prior year and an additional loss of $3.2 million from the adjusted EBITDA reported for the immediate preceding quarter.

    EMKR’s cash and cash equivalents and restricted cash totaled approximately $17.0 million as of March 31, 2011.  In April 2011, the Company announced a common stock private placement of $9.6 million. The closing of the private placement is subject to the completion of customary closing conditions for transactions of this type, including approval of applicable Chinese government agencies.

    Source: www.emcore.com

    Financial Strength (28-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 0.96 1.80 2.28 0.71
    Current Ratio (MRQ) 1.46 2.15 2.72 1.03
    LT Debt to Equity (MRQ) 0.00 18.68 13.74 137.21
    Total Debt to Equity (MRQ) 12.73 29.07 24.37 182.98
    Interest Coverage (TTM) -57.71 0.34 0.79 18.03

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among one polled investment analysts. Against the Emcore Corp company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 0 1 0 0 0 0
    4 weeks ago 0 1 0 0 0 0
    2 months ago 0 1 0 0 0 0
    3 months ago 0 0 0 0 0 0
    Last year 0 0 0 0 0 1

    The two analysts offering 12-month price targets for EMKR have a median target of 4.25, with a high estimate of 4.50 and a low estimate of 4.00. The median estimate represents a 81.62% increase from the last price of 2.34.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Jun-11 1 49.76 49.76 49.76
    Quarter Ending Sep-11 1 53.70 53.70 53.70
    Year Ending Sep-11 1 202.78 202.78 202.78
    Year Ending Sep-12 1 244.37 244.37 244.37
    EARNINGS (per share)
    Quarter Ending Jun-11 1 -0.04 -0.04 -0.04
    Quarter Ending Sep-11 1 -0.02 -0.02 -0.02
    Year Ending Sep-11 1 -0.15 -0.15 -0.15
    Year Ending Sep-12 1 0.07 0.07 0.07

    Technical Analysis

    Source: http://stockcharts.com

    EMKR is above the upper Bollinger Band, implying that it is currently extended from its recent trend.

    EMKR’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June28-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    JDS Uniphase Corp. JDSU 16.78 3.81B 18.04 14.98 2.10 1.90
    Finisar Corp. FNSR 17.66 1.58B 19.20 12.80 1.63 1.44
    Avago Technologies Ltd. AVGO 36.95 9.12B 14.49 13.49 3.91 3.53
    Opnext Inc. OPXT 2.23 201.33M n/a 20.27 0.49 0.42
    Semiconductor – Integrated Circuits Median 14.73 n/a 1.72 n/a
    EMCORE Corp. EMKR 2.59 228.79M n/a 37.00 1.13 0.94

    Source: Thomson Financial

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