GlobeNewswire Inc | Feb 3, 2021 10:30PM EST

February 04, 2021

ALHAMBRA, CA, Feb. 03, 2021 (GLOBE NEWSWIRE) -- In a release issued under the same headline on Wednesday, February 3rd by EMCORE Corporation (Nasdaq: EMKR), please note that the word revenue was missing following combining in the 3rd paragraph. The corrected release follows:

EMCORE Corporation (Nasdaq: EMKR), a leading provider of advanced mixed-signal products that serve the aerospace & defense and broadband communications markets, today announced results for the fiscal 2021 first quarter ended December 31, 2020 (1Q21). Management will host a conference call to discuss financial and business results tomorrow, Thursday, February 4, 2021, at 8:00 AM Eastern Time.

Consolidated revenue for 1Q21 was $33.4 million, comprised of $13.6 million from the Aerospace & Defense segment and $19.8 million from the Broadband segment. Net income on a GAAP and non-GAAP basis was $2.6 million and $3.4 million, respectively, in 1Q21 compared with a net income on a GAAP and non-GAAP basis of $0.7 million and $2.9 million, respectively, in 4Q20. Adjusted EBITDA was positive $4.4 million in 1Q21.

The EMCORE team executed well in 1Q21combining revenue and gross margin consistency with lower operating expenses to drive strong sequential-quarter earnings growth, said Jeff Rittichier, Chief Executive Officer of EMCORE. We continued to overcome COVID-19 related challenges in our supply chain and operations, and made good progress on product qualification and new programs capture despite the COVID headwinds. We remain excited and confident about the growth prospects across our Aerospace & Defense product portfolio. On the Broadband side, we have strong order book for our Cable TV products through the September 2021 quarter with MSOs favoring proven linear optics to provide the network bandwidth that customers need, concluded Rittichier.

Consolidated Results

Three Months Ended Dec 31, 2020 Sep 30, 2020 + increase / 1Q21 4Q20 - decreaseRevenue $33.4M $33.5M -$0.1MGross Margin 38% 37% +1% Operating Expenses $10.1M $11.9M -$1.8MOperating Margin 8% 2% +6% Net Income $2.6M $0.7M +$1.9MEarnings Per Share Basic $0.09 $0.02 +$0.07 Earnings Per Share Diluted $0.08 $0.02 +$0.06 Non-GAAP Gross Margin (1) 38% 38% - Non-GAAP Operating Expenses (1) $9.3M $9.7M -0.4MNon-GAAP Operating Margin (1) 10% 9% +1% Non-GAAP Net Income (1) $3.4M $2.9M +$0.5MNon-GAAP Earnings Per Share Basic (1) $0.12 $0.10 +$0.02 Non-GAAP Earnings Per Share Diluted (1) $0.11 $0.10 +$0.01 Adjusted EBITDA $4.4M $4.0M +$0.4MEnding Cash and Cash Equivalents $31.2M $30.5M +$0.7MLoan Payable $6.5M $6.5M - (1) Please refer to the schedules at the end of this press release for completeGAAP to non-GAAP reconciliations and otherinformation related to non-GAAP financial measures.

Aerospace and Defense (A&D) Segment

A&Ds sequential-quarter revenue decrease was primarily due to lower sales of Navigation products. A&Ds gross margin decreased slightly, primarily due to the lower revenue.

Three Months Ended Dec 31, 2020 Sep 30, 2020 + increase / 1Q21 4Q20 - decreaseA&D Segment Revenue $13.6M $14.5M -$0.9MA&D Segment Gross Margin 30 % 31 % -1 %A&D Segment R&D Expense (2) $3.7M $5.6M -$1.9MA&D Segment Profit $0.4M -$1.1M +$1.5MNon-GAAP A&D Segment Gross Margin (1) 31 % 32 % -1 %Non-GAAP A&D Segment R&D Expense (1) $3.6M $4.0M -$0.4MNon-GAAP A&D Segment Profit $0.6M $0.6M - (1) Please refer to the schedules at the end of this press release forcomplete GAAP to non-GAAPreconciliations and other information related to non-GAAP financial measures.(2) Individual components may not sum to the total of reported consolidatedamounts due to rounding.

Broadband Segment

Broadbands sequential-quarter revenue increase was primarily driven by higher sales of Cable TV optical transmitters and components. Broadbands gross margin increased slightly, primarily driven by the higher revenue.

Three Months Ended Dec 31, Sep 30, + increase 2020 2020 / 1Q21 4Q20 - decreaseBroadband Segment Revenue $19.8M $19.0M +$0.8MBroadband Segment Gross Margin 43 % 42 % +1 %Broadband Segment R&D Expense (2) $0.6M $0.7M -$0.1MBroadband Segment Profit $7.9M $7.3M +$0.6MNon-GAAP Broadband Segment Gross Margin (1) 43 % 42 % +1 %Non-GAAP Broadband Segment R&D Expense (1) $0.5M $0.6M -$0.1MNon-GAAP Broadband Segment Profit $8.0M $7.4M +$0.6M(1) Please refer to the schedules at the end of this press. release forcomplete GAAP to non-GAAPreconciliations and other information related to non-GAAP financial measures.(2) Individual components may not sum to the total of reported consolidatedamounts due to rounding.

Business Outlook

The Company expects revenue for the fiscal second quarter ending March 31, 2021 to be in the range of $34 million to $36 million.

Conference Call

The Company will discuss its financial results on February 4, 2021 at 8:00 a.m. ET (5:00 a.m. PT). The call will be available, live, to interested parties by dialing 866-248-8441. For international callers, please dial +1 323-289-6576. The conference passcode number is 8047032. The call will be webcast live via the Company's website at http://www.emcore.com. A webcast will be available for replay beginning Thursday, February 4, 2021 following the conclusion of the call.

About EMCORE

EMCORE Corporation is a leading provider of advanced mixed-signal products that serve the aerospace & defense and broadband communications markets. Our best-in-class components and systems support a broad array of applications including navigation and inertial sensing, defense optoelectronics, broadband transport, 5G wireless infrastructure, optical sensing, and cloud data centers. We leverage industry-leading Quartz MEMS, Lithium Niobate and Indium Phosphide chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its wafer fabrication facility in Alhambra, CA, and Quartz MEMS manufacturing facility in Concord, CA. Our manufacturing facilities maintain ISO 9001 quality management certification, and we are AS9100 aerospace quality certified at our facility in Concord. For further information about EMCORE, please visit http://www.emcore.com.

Use of Non-GAAP Financial Measures

The Company conforms to U.S. Generally Accepted Accounting Principles (GAAP) in the preparation of its financial statements. We disclose supplemental non-GAAP earnings measures for gross profit margin, operating expenses, operating profit margin, net income, and earnings per share, as well as adjusted EBITDA.

Management believes these supplemental non-GAAP measures reflect the Companys core ongoing operating performance and facilitates comparisons across reporting periods. The Company uses these measures when evaluating its financial results and for planning and forecasting of future periods. We believe that these supplemental non-GAAP measures are also useful to investors in assessing our operating performance. While we believe in the usefulness of these supplemental non-GAAP measures, there are limitations. Our non-GAAP measures may not be reported by other companies in our industry and/or may not be directly comparable to similarly titled measures of other companies due to potential differences in calculation. We compensate for these limitations by using these non-GAAP measures as a supplement to GAAP and by providing the reconciliations to the most comparable GAAP measure.

The schedules at the end of this press release reconcile the Companys non-GAAP measures to the most directly comparable GAAP measure. The adjustments share one or more of the following characteristics: they are unusual and the Company does not expect them to recur in the ordinary course of its business, they do not involve the expenditure of cash, they are unrelated to the ongoing operation of the business in the ordinary course, or their magnitude and timing is largely outside of the Companys control. For all reporting periods disclosed, the Company has applied consistent rationale, method, and adjustments in reconciling non-GAAP measures to the most directly comparable GAAP measure.

Non-GAAP measures are not in accordance with or an alternative to GAAP, nor are they meant to be considered in isolation or as a substitute for comparable GAAP measures. Our disclosures of these measures should be read only in conjunction with our financial statements prepared in accordance with GAAP. Non-GAAP measures should not be viewed as a substitute for the Companys GAAP results.

Forward-Looking Statements

The information provided herein may include 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 (Exchange Act). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate.

These forward-looking statements may be identified by the use of terms and phrases such as anticipates, believes, can, could, estimates, expects, forecasts, intends, may, plans, projects, targets, will, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as projected financial results, the development of new products, enhancements or technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. We caution that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) the rapidly evolving markets for the Company's products and uncertainty regarding the development of these markets; (b) the Company's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; (c) delays and other difficulties in commercializing new products; (d) the failure of new products: (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and (iv) to successfully compete with products offered by our competitors; (e) uncertainties concerning the availability and cost of commodity materials and specialized product components that we do not make internally; (f) actions by competitors; (g) risks and uncertainties related to applicable laws and regulations, including the impact of changes to applicable tax laws and tariff regulations; (h) acquisition-related risks, including that (i) the revenues and net operating results obtained from our acquisition of the Systron Donner Inertial ("SDI") business may not meet our expectations, (ii) the costs and cash expenditures for integration of the SDI business operations may be higher than expected, (iii) there could be losses and liabilities arising from the acquisition of SDI that we will not be able to recover from any source, and (iv) we may not realize sufficient scale in our navigation systems product line from the SDI acquisition and will need to take additional steps, including making additional acquisitions, to achieve our growth objectives for this product line; (i) risks related to our ability to obtain capital; (j) risks related to the transition of certain of our manufacturing operations from our Beijing facility to a contract manufacturers facility; (k) the outbreak of COVID-19 and the impact on our business and operations, which is evolving and beyond our control; and (l) other risks and uncertainties discussed under Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as updated by our subsequent periodic reports.

Forward-looking statements are based on certain assumptions and analysis made in light of our experience and perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate under the circumstances. While these statements represent our judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission (SEC) that are available on the SECs web site located at www.sec.gov, including the sections entitled Risk Factors in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We do not intend to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

EMCORE CORPORATIONCondensed Consolidated Statement of Operations(in thousands, except for per share data)(unaudited)

Forthethreemonthsended December31, 2020 2019 Revenue $ 33,426 $ 25,482 Cost of revenue 20,854 18,008 Gross profit 12,572 7,474 Operating expense: Selling, general, and 5,798 5,887 administrativeResearch and development 4,296 4,642 Gain on sale of assets (29 ) (1,602 ) Total operating expense 10,065 8,927 Operating income (loss) 2,507 (1,453 ) Other income: Interest expense, net (49 ) (15 ) Foreign exchange gain 237 147 Total other income 188 132 Income (loss) before 2,695 (1,321 ) income tax expenseIncome tax expense (126 ) (14 ) Net income (loss) $ 2,569 $ (1,335 ) Foreign exchange (10 ) (36 ) translation adjustmentComprehensive income $ 2,559 $ (1,371 ) (loss)Per share data: Net income (loss) per $ 0.09 $ (0.05 ) basic shareWeighted-average number of 29,503 28,832 basic shares outstandingNet income (loss) per $ 0.08 $ (0.05 ) diluted shareWeighted-average number of 30,377 28,832 diluted shares outstanding

EMCORE CORPORATIONCondensed Consolidated Balance Sheets(in thousands)(unaudited)

December 31, September 30, 2020 2020 ASSETS Current assets: Cash and cash equivalents $ 31,120 $ 30,390 Restricted cash 38 148 Accounts receivable, net of allowance of $234 and 27,276 25,324 $227, respectivelyContract assets 582 1,566 Inventory 27,855 25,525 Prepaid expenses and other current assets 4,283 5,589 Assets held for sale 1,661 1,568 Total current assets 92,815 90,110 Property, plant, and equipment, net 20,558 21,052 Goodwill 69 69 ROU assets 14,262 14,566 Other intangible assets, net 193 202 Other non-current assets 229 242 Total assets $ 128,126 $ 126,241 LIABILITIES and SHAREHOLDERS? EQUITY Current liabilities: PPP liability - current $ 1,093 $ ? Accounts payable 17,158 16,484 Accrued expenses and other current liabilities 9,650 11,577 ROU liability - current 979 992 Total current liabilities 28,880 29,053 PPP liability - non-current 5,395 6,488 ROU liability - non-current 13,481 13,735 Asset retirement obligations 2,041 2,022 Other long-term liabilities 794 794 Total liabilities 50,591 52,092 Commitments and contingencies Shareholders? equity: Common stock, no par value, 50,000 sharesauthorized; 36,693 shares issued and 29,783shares 745,188 744,361 outstanding as of December31,2020; 36,461shares issued and 29,551 shares outstanding as ofSeptember30,2020Treasury stock at cost; 6,910 shares (47,721 ) (47,721 )Accumulated other comprehensive income 908 918 Accumulated deficit (620,840 ) (623,409 )Total shareholders? equity 77,535 74,149 Total liabilities and shareholders? equity $ 128,126 $ 126,241

EMCORE CORPORATION

Reconciliations of GAAP to Non-GAAP Financial Measures

ThreeMonthsEnded Dec31,2020 Sep30,2020 1Q21 4Q20Gross Profit $ 12,572 $ 12,463 Gross Margin 38 % 37 % Adjustments: Stock-based compensation 141 194 Asset retirement obligation 19 8 (ARO) accretionAmortization of acquired 9 9 intangiblesTotal adjustments 169 211 Non-GAAP Gross Profit $ 12,741 $ 12,674 Non-GAAP Gross Margin 38 % 38 %

ThreeMonthsEnded Dec31,2020 Sep30,2020 1Q21 4Q20Operating Expenses $ 10,065 $ 11,850 Stock-based compensation (762 ) (697 )Severance and restructuring charges (41 ) (5 )CATV transition - gain on sale of asset 29 55 Litigation-related expenses ? (1,464 )Gain/loss due to change in ARO estimate ? ? Gain/loss on sale of assets ? ? Non-GAAP Operating Expenses $ 9,291 $ 9,739

ThreeMonthsEnded Dec31,2020 Sep30,2020 1Q21 4Q20Operating Profit $ 2,507 $ 613 Operating Margin 8 % 2 % Adjustments: Stock-based compensation 903 891 Asset retirement obligation (ARO) accretion 19 8 Amortization of acquired intangibles 9 9 Severance and restructuring charges 41 5 CATV transition - gain on sale of asset (29 ) (55 )Litigation-related expenses ? 1,464 Total adjustments 943 2,322 Non-GAAP Operating Profit 3,450 2,935 Non-GAAP Operating Margin 10 % 9 % Depreciation 996 1,108 Adjusted EBITDA $ 4,446 $ 4,043 Adjusted EBITDA % 13 % 12 %

ThreeMonthsEnded Dec31,2020 Sep30,2020 1Q21 4Q20Net Income $ 2,569 $ 703 Earnings Per Share Basic 0.09 0.02 Earnings Per Share Diluted 0.08 0.02 Adjustments: Stock-based compensation 903 891 Asset retirement obligation (ARO) accretion 19 8 Amortization of acquired intangibles 9 9 Severance and restructuring charges 41 5 CATV transition - gain on sale of asset (29 ) (55 )Litigation-related expenses ? 1,464 Foreign currency gain (237 ) (227 )Income tax expense 126 87 Total adjustments 832 2,182 Non-GAAP Net Income 3,401 2,885 Non-GAAP Earnings Per Share Basic 0.12 0.10 Non-GAAP Earnings Per Share Diluted 0.11 0.10 Interest expense, net 49 50 Depreciation 996 1,108 Adjusted EBITDA $ 4,446 $ 4,043 Adjusted EBITDA % 13 % 12 %

ThreeMonthsEnded ThreeMonthsEnded Dec31,2020 Sep30,2020 Dec31,2020 Sep30,2020 1Q21 4Q20 1Q21 4Q20Aerospace and Broadband DefenseGross Profit $ 4,100 $ 4,501 Gross Profit $ 8,472 $ 7,962 Gross Margin 30 % 31 % Gross Margin 43 % 42 % Adjustments: Adjustments: Stock-based 91 154 Stock-based 50 40 compensation compensationAsset retirement Asset retirementobligation (ARO) ? ? obligation (ARO) 19 8 accretion accretionAmortization of Amortization ofacquired 9 9 acquired ? ? intangibles intangiblesTotal adjustments 100 163 Total adjustments 69 48 Non-GAAP Gross $ 4,200 $ 4,664 Non-GAAP Gross $ 8,541 $ 8,010 Profit ProfitNon-GAAP Gross 31 % 32 % Non-GAAP Gross 43 % 42 %Margin Margin Aerospace and Broadband DefenseR&D Expenses $ 3,686 $ 5,574 R&D Expenses $ 610 $ 662 Stock-based (123 ) (70 ) Stock-based (80 ) (42 )compensation compensationLitigation-related ? (1,464 ) Litigation-related ? ? expenses expensesNon-GAAP R&D $ 3,563 $ 4,040 Non-GAAP R&D $ 530 $ 620 Expenses Expenses

Contact:EMCORE CorporationTom Minichiello(626) 293-3400investor@emcore.com