GlobeNewswire Inc | Nov 30, 2021 04:01PM EST

November 30, 2021

ALHAMBRA, Calif., Nov. 30, 2021 (GLOBE NEWSWIRE) -- EMCORE Corporation (Nasdaq: EMKR), a leading provider of advanced mixed-signal products that serve the aerospace and defense, communications, and sensing markets, today announced results for the fiscal 2021 fourth quarter (4Q21) and full fiscal year (FY21) ended September 30, 2021. Management will host a conference call to discuss financial and business results tomorrow, Wednesday, December 1, 2021, at 8:00 AM Eastern Time (ET).

For 4Q21, consolidated revenue was $44.0 million, comprised of $11.7 million from the Aerospace and Defense (A&D) segment and $32.2 million from the Broadband segment. Net income was $5.1 million and $6.8 million on a GAAP and non-GAAP basis, respectively. Adjusted EBITDA was $7.8 million.

For FY21, consolidated revenue was $158.4 million, comprised of $50.8 million from the A&D segment and $107.6 million from the Broadband segment. Net income was $25.6 million and $24.0 million on a GAAP and non-GAAP basis, respectively. Adjusted EBITDA was $28.1 million.

Please refer to the schedules at the end of this press release for GAAP to non-GAAP reconciliations and other information related to non-GAAP financial measures.

We delivered record-setting financial performance in the fiscal fourth quarter and for the full fiscal year 2021 despite headwinds from semiconductor shortages and supply chain problems. Strong demand from our Broadband customers and solid execution by the Emcore operating team combined to showcase the operating leverage in our business. For FY21, revenue was up 44%, gross margin expanded to 39%, and net income was 16% of revenue, said Jeff Rittichier, Chief Executive Officer of EMCORE. While the global pandemic impacted our A&D results in FY21, we made strong progress with the development and integration of new products for the navigation market and in strengthening our sales and marketing team. Now that our A&D customers are returning to more normal working environments, we expect significant growth from this segment in FY22.

Consolidated Results

Three Months Ended Sep 30, Jun 30, +increase 2021 2021 / 4Q21 3Q21 -decreaseRevenue $44.0M $42.7M +$1.3MGross Margin 39% 40% -1%Operating Expenses $11.6M $10.8M +$0.8MOperating Margin 13% 15% -2%Net Income (1) $5.1M $13.6M -$8.5MEarnings Per Share Diluted (1) $0.13 $0.35 -$0.22Non-GAAP Gross Margin (2) 39% 41% -2%Non-GAAP Operating Expenses (2) $10.5M $9.6M +0.9MNon-GAAP Operating Margin (2) 16% 19% -3%Non-GAAP Net Income (2) $6.8M $7.9M -$1.1MNon-GAAP Earnings Per Share Diluted (2) $0.17 $0.20 -$0.03Adjusted EBITDA $7.8M $8.9M -$1.1MEnding Cash and Cash Equivalents $71.7M $68.3M +$3.4M(1) 3Q21 includes $7.4M of non-recurring gains related to extinguishment ofdebt and expiring tax-related liabilities.(2) Please refer to the schedules at the end of this press release for GAAPto non-GAAP reconciliations and other information related to non-GAAPfinancial measures.

Twelve Months Ended Sep 30, Sep 30, +increase/ 2021 2020 -decrease FY21 FY20Revenue $158.4M $110.1M +$48.3MGross Margin 39% 32% +7%Operating Expenses $42.5M $42.6M -$0.1MOperating Margin 12% (6)% +18%Net Income (Loss) (1) $25.6M $(7.0)M +$32.6MEarnings (Loss) Per Share Diluted (1) $0.72 $(0.24) +$0.96Non-GAAP Gross Margin (2) 39% 33% +6%Non-GAAP Operating Expenses (2) $38.2M $39.7M -1.5MNon-GAAP Operating Margin (2) 15% (3)% +18%Non-GAAP Net Income (Loss) (2) $24.0M $(3.5)M +$27.5MNon-GAAP Earnings (Loss) Per Share Diluted (2) $0.67 $(0.12) +$0.79Adjusted EBITDA $28.1M $2.1M +$26.0MEnding Cash and Cash Equivalents $71.7M $30.5M +$41.2MLoan Payable $? $6.5M -$6.5M(1) FY21 includes $7.4M of non-recurring gains related to extinguishment ofdebt and expiring tax-related liabilities.(2) Please refer to the schedules at the end of this press release for GAAPto non-GAAP reconciliations and other information related to non-GAAPfinancial measures.





Aerospace and Defense Segment

For 4Q21, A&Ds sequential-quarter revenue decrease was due to lower sales of QMEMS and Defense Optoelectronics products, partially offset by higher FOG revenue. The lower A&D gross margin was primarily due to lower QMEMS margins. Research and development (R&D) expense increased primarily due to lower customer-funded R&D and increased project material costs. For FY21, A&Ds revenue decrease was due to lower Navigation revenue (QMEMS and FOG) and lower sales of Defense Optoelectronics products. The lower A&D gross margin was primarily due to the revenue decrease. The reduced R&D expense was primarily attributable to our FOG product line.

Three Months Ended Sep 30, Jun 30, +increase 2021 2021 / 4Q21 3Q21 -decreaseA&D Segment Revenue (1) $11.7M $12.3M -$0.6MA&D Segment Gross Margin 17% 31% -14%A&D Segment R&D Expense $4.2M $3.6M +$0.6MA&D Segment Profit (1) ($2.2M) $0.3M -$2.5MNon-GAAP A&D Segment Gross Margin (2) 18% 33% -15%Non-GAAP A&D Segment R&D Expense (2) $4.0M $3.5M +$0.5MNon-GAAP A&D Segment Profit ($2.0M) $0.6M -$2.6M(1) Individual components may not sum to the total of reported consolidatedamounts due to rounding.(2) Please refer to the schedules at the end of this press release for GAAPto non-GAAP reconciliations and other information related to non-GAAPfinancial measures.

Twelve Months Ended Sep 30, Sep 30, +increase 2021 2020 / FY21 FY20 -decreaseA&D Segment Revenue (1) $50.8M $55.2M -$4.4MA&D Segment Gross Margin 27% 30% -3%A&D Segment R&D Expense $14.6M $17.5M -$2.9MA&D Segment Profit (1) ($0.9M) ($0.7M) -$0.2MNon-GAAP A&D Segment Gross Margin (2) 28% 31% -3%Non-GAAP A&D Segment R&D Expense (2) $14.1M $15.6M -$1.5MNon-GAAP A&D Segment Profit $0.1M $1.6M -$1.5M(1) Individual components may not sum to the total of reported consolidatedamounts due to rounding.(2) Please refer to the schedules at the end of this press release for GAAPto non-GAAP reconciliations and other information related to non-GAAPfinancial measures.

Broadband Segment

For 4Q21 and FY21, Broadbands revenue increase was driven by record sales of Cable TV products, which also drove better gross margins. For 4Q21, the R&D expense decrease when compared to 3Q21 was primarily attributable to our Cable TV product line. For FY21, R&D expense was flat when compared to FY20.

Three Months Ended Sep 30, Jun 30, +increase 2021 2021 / 4Q21 3Q21 -decreaseBroadband Segment Revenue (1) $32.2M $30.3M +$1.9MBroadband Segment Gross Margin 47% 44% +3%Broadband Segment R&D Expense $0.7M $0.9M -$0.2MBroadband Segment Profit (1) $14.4M $12.5M +$1.9MNon-GAAP Broadband Segment Gross Margin (2) 47% 44% +3%Non-GAAP Broadband Segment R&D Expense (2) $0.6M $0.8M -$0.2MNon-GAAP Broadband Segment Profit $14.6M $12.6M +$2.0M(1) Individual components may not sum to the total of reported consolidatedamounts due to rounding.(2) Please refer to the schedules at the end of this press. release for GAAP tonon-GAAP reconciliations and other information related to non-GAAP financialmeasures.

Twelve Months Ended Sep 30, Sep 30, +increase/ 2021 2020 -decrease FY21 FY20Broadband Segment Revenue (1) $107.6M $54.9M +$52.7MBroadband Segment Gross Margin 44% 34% +10%Broadband Segment R&D Expense $2.8M $2.8M $?MBroadband Segment Profit (1) $45.0M $16.1M +$28.9MNon-GAAP Broadband Segment Gross Margin (2) 45% 35% +10%Non-GAAP Broadband Segment R&D Expense (2) $2.5M $2.5M $?MNon-GAAP Broadband Segment Profit $45.6M $16.6M +$29.0M(1) Individual components may not sum to the total of reported consolidatedamounts due to rounding.(2) Please refer to the schedules at the end of this press. release for GAAP tonon-GAAP reconciliations and other information related to non-GAAP financialmeasures.

Business Outlook

The Company expects revenue for the fiscal 2022 first quarter ending December 31, 2021 to be in the range of $41 million to $43 million.

Conference Call

The Company will discuss its financial results on December 1, 2021 at 8:00 a.m. ET (5:00 a.m. PT). The call will be available, live, to interested parties by dialing 877-614-0009. For international callers, please dial +1 786-460-7199. The conference passcode number is 5156156. The call will be webcast live via the Company's website at http://www.emcore.com. A webcast will be available for replay beginning Wednesday, December 1, 2021 following the conclusion of the call.

About EMCORE

EMCORE Corporation is a leading provider of advanced mixed-signal products that serve the aerospace and defense, communications, and sensing markets. Our best-in-class components and systems support a broad array of applications including navigation and inertial sensing, defense optoelectronics, broadband communications, optical sensing, and specialty chips for telecom and data center. 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, research and development expenses, operating profit, 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, including our growth expectations in the A&D segment, 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) uncertainties regarding the effects of the COVID-19 pandemic, the length of time it will take for the COVID 19 pandemic to subside, and the impact of measures intended to reduce its spread on our business and operations, which is evolving and beyond our control; (b) the rapidly evolving markets for the Company's products and uncertainty regarding the development of these markets; (c) 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; (d) delays and other difficulties in commercializing new products; (e) 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; (f) uncertainties concerning the availability and cost of commodity materials and specialized product components that we do not make internally; (g) actions by competitors; (h) risks and uncertainties related to applicable laws and regulations, including the impact of changes to applicable tax laws and tariff regulations; (i) 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) there could be losses and liabilities arising from the acquisition of SDI that we will not be able to recover from any source, and (iii) 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; (j) risks related to our ability to obtain capital; (k) risks related to the transition of certain of our manufacturing operations from our Beijing facility to a contract manufacturers facility; (l) risks and uncertainties related to manufacturing and production capacity and expansion plans related thereto; (m) risks related to the conversion of order backlog into product revenue; and (n) 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 entitledRisk Factorsin 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 and Comprehensive Income (Loss)(in thousands, except for per share data)(unaudited)

Forthethreemonthsended Forthe fiscal yearended September 30, September 30, 2021 2020 2021 2020 Revenue $ 43,954 $ 33,530 $ 158,444 $ 110,128 Cost of revenue 26,897 21,067 96,956 74,546 Gross profit 17,057 12,463 61,488 35,582 Operating expense: Selling, general, and 6,603 5,669 24,544 24,631 administrativeResearch and development 4,881 6,236 17,448 20,269 Loss (gain) on sale of 76 (55 ) 515 (2,284 )assetsTotal operating expense 11,560 11,850 42,507 42,616 Operating income (loss) 5,497 613 18,981 (7,034 )Other (expense) income: Gain on extinguishment ? ? 6,561 ? of debtInterest (expense) (15 ) (50 ) 466 (104 )income, netForeign exchange (loss) (49 ) 227 207 198 gainTotal other (expense) (64 ) 177 7,234 94 incomeIncome (loss) before 5,433 790 26,215 (6,940 )income tax expenseIncome tax expense (358 ) (87 ) (572 ) (60 )Net income (loss) $ 5,075 $ 703 $ 25,643 $ (7,000 )Foreign exchange (205 ) (27 ) (231 ) (32 )translation adjustmentComprehensive income $ 4,870 $ 676 $ 25,412 $ (7,032 )(loss)Per share data Net income (loss) per $ 0.14 $ 0.02 $ 0.75 $ (0.24 )basic shareWeighted-average numberof basic shares 36,845 29,386 34,020 29,136 outstandingNet income (loss) per $ 0.13 $ 0.02 $ 0.72 $ (0.24 )diluted shareWeighted-average numberof diluted shares 38,993 29,386 35,789 29,136 outstanding

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

As of September 30 2021 2020ASSETS Current assets: Cash and cash equivalents $ 71,621 $ 30,390 Restricted cash 61 148 Accounts receivable, net of credit loss of $260 and 31,849 25,324 $227, respectivelyContract assets 361 1,566 Inventory 32,309 25,525 Prepaid expenses and other current assets 6,877 5,589 Assets held for sale 1,241 1,568 Total current assets 144,319 90,110 Property, plant, and equipment, net 22,544 21,052 Goodwill 69 69 Operating lease right-of-use assets 13,489 14,566 Other intangible assets, net 167 202 Other non-current assets 225 242 Total assets $ 180,813 $ 126,241 LIABILITIES and SHAREHOLDERS? EQUITY Current liabilities: Accounts payable $ 16,686 $ 16,484 Accrued expenses and other current liabilities 9,936 11,577 Operating lease liabilities - current 1,198 992 Total current liabilities 27,820 29,053 PPP liability - non-current ? 6,488 Operating lease liabilities - non-current 12,684 13,735 Asset retirement obligations 2,049 2,022 Other long-term liabilities 794 794 Total liabilities 43,347 52,092 Commitments and contingencies Shareholders? equity: Common stock, no par value, 50,000 sharesauthorized; 43,890 shares issued and 36,984 sharesoutstanding as of September30, 2021; 36,461 shares 782,266 744,361 issued and 29,551 shares outstanding as ofSeptember30, 2020Treasury stock at cost; 6,906 shares as ofSeptember30, 2021 and 6,910 shares as of (47,721 ) (47,721 )September30, 2020Accumulated other comprehensive income 687 918 Accumulated deficit (597,766 ) (623,409 )Total shareholders? equity 137,466 74,149 Total liabilities and shareholders? equity $ 180,813 $ 126,241

EMCORE CORPORATIONReconciliations of GAAP to Non-GAAP Financial Measures

ThreeMonthsEnded TwelveMonthsEnded Sep 30, Jun 30, Sep 30, Sep 30, 2021 2021 2021 2020 4Q21 3Q21 FY21 FY20Gross Profit $ 17,057 $ 17,225 $ 61,488 $ 35,582 Gross Margin 39 % 40 % 39 % 32 % Adjustments: Stock-based 204 220 767 692 compensation expenseAsset retirement 9 11 48 32 obligation accretionAmortization of 9 9 36 36 acquired intangiblesTotal adjustments 222 240 851 760 Non-GAAP Gross Profit $ 17,279 $ 17,465 $ 62,339 $ 36,342 Non-GAAP Gross Margin 39 % 41 % 39 % 33 %

Three Months Ended Twelve Months Ended Sep 30, Jun 30, Sep 30, Sep 30, 2021 2021 2021 2020 4Q21 3Q21 FY21 FY20Operating Expenses $ 11,560 $ 10,831 $ 42,507 $ 42,616 Stock-based compensation expense (966 ) (956 ) (3,413 ) (2,824 )Acquisition related expenses ? ? ? (45 )Severance and restructuring ? ? (55 ) (407 )chargesCATV transition - severance ? ? ? (224 )chargeCATV transition - (loss) gain on (76 ) (250 ) (133 ) 1,950 sale of assets(Loss) gain on sale of assets ? ? (382 ) 334 Litigation-related expenses (58 ) (70 ) (297 ) (1,705 )Non-GAAP Operating Expenses $ 10,460 $ 9,555 $ 38,227 $ 39,695

ThreeMonthsEnded TwelveMonthsEnded Sep 30, Jun 30, Sep 30, Sep 30, 2021 2021 2021 2020 4Q21 3Q21 FY21 FY20Operating Profit $ 5,497 $ 6,394 $ 18,981 $ (7,034 )Operating Margin 13 % 15 % 12 % (6 ) % Adjustments: Stock-based compensation 1,170 1,176 4,180 3,516 expenseAsset retirement obligation 9 11 48 32 accretionAcquisition related expenses ? ? ? 45 Amortization of acquired 9 9 36 36 intangiblesSeverance and restructuring ? ? 55 407 chargesCATV transition - severance ? ? ? 224 chargeCATV transition - loss (gain) 76 250 133 (1,950 )on sale of assetsLoss (gain) on sale of assets ? ? 382 (334 )Litigation-related expenses 58 70 297 1,705 Total adjustments 1,322 1,516 5,131 3,681 Non-GAAP Operating Profit 6,819 7,910 24,112 (3,353 )Non-GAAP Operating Margin 16 % 19 % 15 % (3 ) % Depreciation expense 990 1,016 3,978 5,416 Adjusted EBITDA $ 7,809 $ 8,926 $ 28,090 $ 2,063 Adjusted EBITDA % 18 % 21 % 18 % 2 %

ThreeMonthsEnded TwelveMonthsEnded Sep 30, Jun 30, Sep 30, Sep 30, 2021 2021 2021 2020 4Q21 3Q21 FY21 FY20Net Income (Loss) $ 5,075 $ 13,615 $ 25,643 $ (7,000 )Earnings (Loss) Per Share 0.14 0.37 0.75 (0.24 )BasicEarnings (Loss) Per Share 0.13 0.35 0.72 (0.24 )Diluted Non-recurring gains, tax effected:Gain on extinguishment of debt ? (6,417 ) (6,417 ) ? Release of uncertain tax ? (1,007 ) (1,007 ) ? reserve and related interestTotal non-recurring gains, tax ? (7,424 ) (7,424 ) ? effected Net Income (Loss), excludingnon-recurring gains tax $ 5,075 $ 6,191 $ 18,219 $ (7,000 )effectedEarnings (Loss) Per ShareBasic, excluding non-recurring 0.14 0.17 0.54 (0.24 )gains tax effectedEarnings (Loss) Per ShareDiluted, excluding 0.13 0.16 0.51 (0.24 )non-recurring gains taxeffected Adjustments: Stock-based compensation 1,170 1,176 4,180 3,516 expenseAsset retirement obligation 9 11 48 32 accretionAcquisition-related expenses ? ? ? 45 Amortization of acquired 9 9 36 36 intangiblesSeverance and restructuring ? ? 55 407 chargesCATV transition - severance ? ? ? 224 chargeCATV transition - loss (gain) 76 250 133 (1,950 )on sale of assetsLitigation-related expenses 58 70 297 1,705 Loss (gain) on sale of assets ? ? 382 (334 )Foreign exchange loss (gain) 49 (87 ) (207 ) (198 )Income tax expense 358 265 831 60 Total adjustments 1,729 1,694 5,755 3,543 Non-GAAP Net Income (Loss) 6,804 7,885 23,974 (3,457 )Non-GAAP Earnings (Loss) Per 0.18 0.21 0.70 (0.12 )Share BasicNon-GAAP Earnings (Loss) Per 0.17 0.20 0.67 (0.12 )Share Diluted Interest expense, net 15 25 138 104 Depreciation expense 990 1,016 3,978 5,416 Adjusted EBITDA $ 7,809 $ 8,926 $ 28,090 $ 2,063 Adjusted EBITDA % 18 % 21 % 18 % 2 %

Three Months Ended Three Months Ended Sep 30, Jun 30, Sep 30, Jun 30, 2021 2021 2021 2021 4Q21 3Q21 4Q21 3Q21Aerospace and Broadband DefenseGross Profit $ 1,959 $ 3,872 Gross Profit $ 15,098 $ 13,353 Gross Margin 17 % 31 % Gross Margin 47 % 44 % Adjustments: Adjustments: Stock-based 118 129 Stock-based 86 91 compensation compensationAsset Assetretirement ? ? retirement 9 11 obligation obligationaccretion accretionAmortization of Amortization ofacquired 9 9 acquired ? ? intangibles intangiblesTotal 127 138 Total 95 102 adjustments adjustments Non-GAAP Gross $ 2,086 $ 4,010 Non-GAAP Gross $ 15,193 $ 13,455 Profit ProfitNon-GAAP Gross 18 % 33 % Non-GAAP Gross 47 % 44 %Margin Margin R&D Expenses $ 4,175 $ 3,598 R&D Expenses $ 706 $ 902 Stock-based (131 ) (139 ) Stock-based (76 ) (65 )compensation compensationNon-GAAP R&D $ 4,044 $ 3,459 Non-GAAP R&D $ 630 $ 837 Expenses Expenses

Twelve Months Ended Twelve Months Ended Sep 30, Sep 30, Sep 30, Sep 30, 2021 2020 2021 2020 FY21 FY20 FY21 FY20Aerospace and Broadband DefenseGross Profit $ 13,705 $ 16,729 Gross Profit $ 47,783 $ 18,853 Gross Margin 27 % 30 % Gross Margin 44 % 34 % Adjustments: Adjustments: Stock-based 458 466 Stock-based 308 226 compensation compensationAsset retirement Asset retirementobligation ? ? obligation 48 32 accretion accretionAmortization of Amortization ofacquired 36 36 acquired ? ? intangibles intangiblesTotal adjustments 494 502 Total adjustments 356 258 Non-GAAP Gross $ 14,199 $ 17,231 Non-GAAP Gross $ 48,139 $ 19,111 Profit ProfitNon-GAAP Gross 28 % 31 % Non-GAAP Gross 45 % 35 %Margin Margin R&D Expenses $ 14,616 $ 17,469 R&D Expenses $ 2,832 $ 2,800 Stock-based (529 ) (374 ) Stock-based (295 ) (295 )compensation compensationLitigation-related ? (1,464 ) Litigation-related ? ? expenses expensesNon-GAAP R&D $ 14,087 $ 15,631 Non-GAAP R&D $ 2,537 $ 2,505 Expenses Expenses

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