EMCORE Announces Anticipated Sale of Non-Strategic Product Lines

ALHAMBRA, Calif., Aug. 08, 2023 (GLOBE NEWSWIRE) -- EMCORE Corporation (Nasdaq: EMKR), the world’s largest independent provider of inertial navigation solutions to the aerospace and defense industry, announced today the execution of a nonbinding letter of intent for the sale of the Defense Optoelectronics product line and all Broadband segment product lines except chips to Photonics Foundries, Inc. Given this anticipated sale, EMCORE now expects last-time buy revenue from business lines included in our April 21, 2023 restructuring announcement to aggregate approximately $6 million, the majority of which relates to the Company’s chip business, and includes $1.3 million that was recognized as revenue for the three months ended June 30, 2023. It is contemplated that the portion of the remaining projected last-time buys that were previously announced by EMCORE will be transferred to Photonics Foundries if the proposed transaction is completed. The anticipated transaction does not include EMCORE’s chip business or wafer fab assets.  

Jeffrey Rittichier, EMCORE’s President and CEO stated, “We are very pleased to announce the execution of a non-binding letter of intent to transfer substantially all assets, including employees, contracts, intellectual property, inventory, and liabilities primarily related to these businesses except for any exceptions specifically negotiated by the parties, and continuing EMCORE’s efforts to focus solely on its Inertial Navigation business.” Mr. Rittichier went on to say, “Consummation of the transaction remains subject to further buyer diligence, receipt of certain third-party consents, and negotiation and execution of legally binding definitive transaction agreements on mutually agreeable terms, which we currently expect to occur during the quarter ending September 30, 2023.”

Nat Mani, CEO and Managing Partner of Photonics Foundries, Inc added, “We look forward to the completion of this transaction to acquire EMCORE’s Broadband and Defense Opto product lines, which have a long-standing history and reputation for leadership in the industry. We’d like to welcome and assure the customers of these product lines continuity of supply and a seamless transition of both people and technology. We are committed to providing value-added engineering and manufacturing solutions to EMCORE’s customers by leveraging our expertise in optoelectronics.”