EMCORE Corporation Announces Unaudited Results for Its Third Quarter Ended June 30, 2009

ALBUQUERQUE, NM--(Marketwire - August 17, 2009) - EMCORE Corporation (NASDAQ: EMKR), a
leading provider of compound semiconductor-based components and subsystems
for the fiber optics and solar power markets, today announced unaudited
financial results for its fiscal third quarter and nine-month periods ended
June 30, 2009.

Quarterly Results:

Revenue:

Revenue for the third quarter of fiscal 2009 was $38.5 million, a decrease
of $4.8 million, or 11%, from $43.3 million reported in the immediately
preceding quarter.

On a segment basis, third quarter revenue for the Photovoltaics segment was
$16.1 million, an increase of $1.2 million, or 8%, from $14.9 million
reported in the immediately preceding quarter with the increase due to
greater demand for satellite solar power products. The Photovoltaics
segment accounted for 42% of the Company's consolidated third quarter
revenue compared to 34% in the preceding second fiscal quarter.

Third quarter revenue for the Fiber Optics segment was $22.4 million, a
decrease of $6.0 million, or 21%, from $28.4 million reported in the
immediately preceding quarter with the decline in revenue concentrated
primarily in the telecom and CATV product lines. The Fiber Optics segment
accounted for 58% of the Company's consolidated third quarter revenue
compared to 66% in the preceding second fiscal quarter.

Gross Profit / (Loss):

After excluding certain adjustments, as set forth in the attached non-GAAP
tables, the third quarter consolidated non-GAAP gross profit was $5.9
million, a $4.5 million improvement from $1.4 million reported in the
preceding quarter with the corresponding non-GAAP gross margin increasing
to 15.3% from 3.3% in the preceding quarter. On a GAAP basis, the
consolidated gross loss for the third quarter was $2.4 million, an
improvement of $4.6 million from a $7.0 million gross loss reported in the
preceding quarter. During the quarter, the Company recorded approximately
$6.4 million in non-cash losses on firm inventory purchase commitments and
$1.9 million in non-cash inventory reserve adjustments in its Fiber Optics
segment, both of which adversely impacted gross profit and margins.

On a segment basis, third quarter Photovoltaics non-GAAP gross margin was a
record 33.9%, a significant increase from a 20.5% gross margin reported in
the preceding quarter with the improvement due primarily to increased sales
of higher margin satellite solar panels along with improved manufacturing
yields on solar cells. The third quarter marks the second consecutive
quarter of sequentially improved non-GAAP gross margins in the
Photovoltaics segment. On a GAAP basis, the third quarter Photovoltaic
gross margin mirrored the non-GAAP gross margin at 33.9% compared to a
negative 24.7% gross margin in the preceding quarter.

Third quarter Fiber Optics non-GAAP gross margin was 1.8%, an increase from
a negative 5.7% gross margin reported in the preceding quarter with the
improvement due primarily to higher margins in the Company's broadband
product lines. On a GAAP basis, third quarter Fiber Optics gross margin was
negative 35.2%, a decrease from a negative 11.7% gross margin reported in
the preceding quarter with the decline due primarily to non-cash losses
recorded on firm inventory purchase commitments which will become excess
and/or obsolete, non-cash inventory valuation write-downs and unabsorbed
overhead expenses, the result of lower revenue levels.

Operating Expenses:

Sales, general, and administrative expenses for the third quarter totaled
$10.9 million, a decrease of $1.1 million, or 9%, from $12.0 million
reported in the preceding quarter. Research and development expenses for
the third quarter totaled $5.7 million, a decrease of $1.2 million, or 18%,
from $6.9 million reported in the preceding quarter. As a result of the
Company's on-going cost reduction initiatives, SG&A expenses declined
sequentially in each of the last two fiscal quarters while R&D expenses
declined in each of the last four fiscal quarters.

Impairment:

During the three months ended June 30, 2009, the Company performed an
evaluation of its Fiber Optics assets for impairment as required by
Statement of Financial Accounting Standard No. 144. As a result of the
evaluation, it was determined that impairment existed, and a charge of
$27.0 million was recorded to write down the long-lived assets to estimated
fair value, which was determined based on a combination of guideline public
company comparisons and discounted estimated future cash flows.

The current economic and financial market conditions had a significant
negative effect on the Company's assessment of the fair value of the Fiber
Optics asset groups. The magnitude of the impairment charge resulted from
the effects of recent declines in market values of comparable public
companies' debt and equity securities and the combined effect of the
current slowdown in product orders and lower product pricing exacerbated by
currently high discount rates used in estimating fair values.

Operating and Net Loss:

After excluding certain non-cash and other adjustments, as set forth in the
attached non-GAAP tables, the third quarter consolidated non-GAAP operating
loss was $7.2 million, a $7.4 million, or 51%, improvement from a $14.6
million operating loss reported in the preceding quarter. On a GAAP basis,
the third quarter consolidated operating loss was $46.0 million, a $20.1
million increase from an operating loss of $25.9 million reported in the
preceding quarter.

After excluding certain non-cash and other adjustments, as set forth in the
attached non-GAAP tables, the third quarter consolidated non-GAAP net loss
was $7.3 million, a $7.4 million, or 50%, improvement from a $14.7 million
net loss reported in the preceding quarter. On a GAAP basis, the
consolidated net loss for the third quarter was $45.4 million, a $21.6
million increase from a net loss of $23.7 million reported in the preceding
quarter.

On a per share basis, the third quarter non-GAAP net loss per share was
$0.09, an improvement of $0.10 per share from a $0.19 loss per share
reported in the preceding quarter. On a GAAP basis, the third quarter net
loss per share was $0.57, an increase of $0.27 per share from a $0.30 net
loss per share reported in the preceding quarter.

Cash Flow:

On a consolidated basis, the Company generated positive cash flow from
operations during the third quarter due to the combination of a lower cash
operating loss and the continuation of improved working capital management.

Order Backlog:

As of June 30, 2009, the Company had a consolidated order backlog of
approximately $49.6 million, an $18.9 million, or 62%, increase from a
$30.7 million order backlog reported as of the end of the preceding
quarter. On a segment basis, the quarter-end Photovoltaics order backlog
totaled $36.2 million, a $16.4 million, or 83%, increase from $19.8 million
reported as of the end of the preceding quarter. The quarter-end Fiber
Optics order backlog totaled $13.4 million, a $2.5 million, or 23% increase
from $10.9 million reported as of the end of the preceding quarter. Order
backlog is defined as purchase orders or supply agreements accepted by the
Company with expected product delivery and / or services to be performed
within the next twelve months.

Liquidity and Balance Sheet Highlights:

-- As of June 30, 2009, cash, cash equivalents, and restricted cash
totaled approximately $9.9 million and working capital totaled $45.3
million.

-- During the third quarter, the Company generated positive cash flow
from operations and positive free cash flow, net of capital expenditures.

-- Over the last two quarters, the Company generated $15.9 million from
the reduction in inventory levels and $15.4 million from the collection of
accounts receivable while, at the same time, lowering its accounts payable
obligations by $23.6 million.

-- Over the last two quarters, the Company has reduced the amount of debt
outstanding under its line of credit with Bank of America by $10.5 million,
to $5.0 million at the end of the third quarter, and is in full compliance
with its bank financial covenants.

In addition to continuing to focus on improving profitability and managing
its working capital, the Company continues to pursue and evaluate a number
of capital raising alternatives including debt and/or equity financings,
product joint-venture opportunities and the potential separation or
divestiture of certain portions of the Company's business. Subsequent to
the end of the third quarter, the Company filed a Form S-3 Registration
Statement with the Securities and Exchange Commission that provides for up
to $50 million in debt and/or equity securities.

Business Outlook:

For the fourth quarter of fiscal 2009, ending September 30, 2009, the
Company expects consolidated revenue to be in the range of $38 to $42
million and expects to generate positive cash flow from operations.

Conference Call:

EMCORE will discuss its unaudited results for its fiscal third quarter and
nine-month period ended June 30, 2009 on a conference call to be held on
Monday, August 17, 2009 at 5:00 pm ET. To participate in the conference
call, U.S. callers should dial (toll free) 800-930-1344 and international
callers should dial 913-312-0847. The access code for the call is 4504248.
A replay of the call will be available beginning August 17, 2009 at
8:30p.m. ET until August 24, 2009 at 11:59 p.m. ET. The replay call-in
number for U.S. callers is 888-203-1112, for international callers it is
719-457-0820 and the access code is 4504248. The call also will be web
cast via the Company's web site at http://www.emcore.com. Please go to the
site beforehand to download any necessary software.

About EMCORE:

EMCORE Corporation is a leading provider of compound semiconductor-based
components and subsystems for the fiber optics and solar power markets.
EMCORE'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. EMCORE's Solar Power segment provides solar products for
satellite and terrestrial applications. For satellite applications, EMCORE
offers high-efficiency compound semiconductor-based multi-junction 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 multi-junction 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
http://www.emcore.com.

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 relating to future events that
involve risks and uncertainties. Such forward-looking statements include
but are not limited to words such as "expects," "anticipates," "intends,"
"plans," believes," and "estimates," and variations of these words and
similar expressions, identify these forward-looking statements. These
forward-looking statements also include, without limitation, (a) any
statements or implications regarding our ability to remain competitive and
a leader in its industry, and the future growth of the Company, or the
industry and the economy in general; (b) statements regarding the expected
level and timing of benefits from our current cost reduction efforts,
including (i) expected cost reductions and their impact on our financial
performance, (ii) our ability to reduce operating expenses associated with
recent acquisitions (iii) our continued leadership in technology and
manufacturing in our markets, and (iv) the belief that the cost reduction
efforts will not impact product development or manufacturing execution; (c)
any statement or implication that the products described in this press
release (i) will be successfully introduced or marketed, (ii) will be
qualified and purchased by our customers, or (iii) will perform to any
particular specifications or performance or reliability standards; (d) any
and all guidance provided by us regarding its expected financial
performance in future periods, including, without limitation, with respect
to anticipated revenues for the fourth quarter of fiscal 2009. 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 impact on the Company, our customers and
our suppliers from the current worldwide economic crisis; (b) our cost
reduction efforts may not be successful in achieving their expected
benefits, (including, among other things, cost structure, gross margin and
other profitability improvements), due to, among other things, shifts in
product mix, selling price pressures, costs and delays related to product
transfers to lower cost manufacturing locations and associated facility
closures, integration difficulties, and execution concerns; (c) we may
encounter difficulties in integrating recent acquisitions and as a result
may sustain increased operating expenses, delays in commercializing new
products, production difficulties associated with transferring products to
our manufacturing facilities and disruption of customer relationships; (d)
the failure of the 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) we may
not be successful in undertaking the steps currently planned in order to
increase our liquidity; and (f) other risks and uncertainties described in
our filings with the Securities and Exchange Commission such as
cancellations, rescheduling or delays in product shipments; manufacturing
capacity constraints; lengthy sales and qualification cycles; difficulties
in the production process; changes in semiconductor industry growth;
increased competition; delays in developing and commercializing new
products; and other factors. The forward-looking statements contained in
this press release are made as of the date hereof and we do not assume any
obligation to update the reasons why actual results could differ materially
from those projected in the forward-looking statements.

EMCORE CORPORATION
Condensed Consolidated Statements of Operations
For the three and nine months ended June 30, 2009 and 2008
(in thousands, except loss per share)
(unaudited)

Three Months Ended Nine Months Ended
June 30, June 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------

Revenue 38,489 75,502 135,829 178,668

Cost of revenue 40,917 61,856 143,673 148,271
---------- ---------- ---------- ----------

Gross (loss) profit (2,428) 13,646 (7,844) 30,397

Operating expenses:
Selling, general, and
administrative 10,914 13,906 35,039 36,032
Research and development 5,654 11,382 20,655 28,132
Impairments 27,000 - 60,781 -
---------- ---------- ---------- ----------
Total operating
expenses 43,568 25,288 116,475 64,164
---------- ---------- ---------- ----------

Operating loss (45,996) (11,642) (124,319) (33,767)

Other (income) expense:
Interest income (3) (124) (83) (778)
Interest expense 105 - 443 1,580
Impairment of investment - - 366 -
Loss from conversion of
subordinated notes - - - 4,658
Stock-based expense from
tolled options - - - 4,316
Gain from sale of
investments - (3,692) (3,144) (3,692)
Loss on disposal of
equipment - - - 86
Foreign exchange (gain)
loss (745) (104) 635 (302)
---------- ---------- ---------- ----------
Total other (income)
expense (643) (3,920) (1,783) 5,868
---------- ---------- ---------- ----------

Net loss $ (45,353) $ (7,722) $ (122,536) $ (39,635)
========== ========== ========== ==========

Per share data:
Basic and diluted per share
data:
Net loss $ (0.57) $ (0.10) $ (1.56) $ (0.62)
========== ========== ========== ==========

Weighted-average number of
basic and diluted shares
outstanding 79,700 76,582 78,632 64,155
========== ========== ========== ==========

EMCORE CORPORATION
Condensed Consolidated Balance Sheets
As of June 30, 2009 and September 30, 2008
(In thousands)
(unaudited)

June 30, September 30,
2009 2008
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 9,386 $ 18,227
Restricted cash 366 1,854
Available-for-sale securities 1,400 2,679
Accounts receivable 41,892 60,313
Inventory, net 39,503 64,617
Prepaid expenses and other current assets 4,424 7,100
---------- ----------

Total current assets 96,971 154,790

Property, plant, and equipment, net 57,695 83,278
Goodwill 20,384 52,227
Other intangible assets, net 13,539 28,033
Investments in unconsolidated affiliates - 8,240
Available-for-sale securities, non-current - 1,400
Long-term restricted cash 163 569
Other non-current assets, net 802 741
---------- ----------

Total assets $ 189,554 $ 329,278
========== ==========

LIABILITIES and SHAREHOLDERS’ EQUITY
Current liabilities:
Line of credit $ 4,984 $ -
Short-term debt 889 -
Accounts payable 21,861 52,266
Accrued expenses and other current liabilities 23,909 23,290
---------- ----------

Total liabilities 51,643 75,556

Commitments and contingencies

Shareholders’ equity:
Preferred stock, $0.0001 par, 5,882 shares
authorized, no shares outstanding - -
Common stock, no par value, 200,000 shares
authorized, 80,647 shares issued and 80,488
outstanding at June 30, 2009; 77,920 shares
issued and 77,761 shares outstanding at
September 30, 2008 686,392 680,020
Accumulated deficit (547,300) (424,764)
Accumulated other comprehensive income 902 549
Treasury stock, at cost; 159 shares as of June 30,
2009 and September 30, 2008 (2,083) (2,083)
---------- ----------

Total shareholders’ equity 137,911 253,722
---------- ----------

Total liabilities and shareholders’ equity $ 189,554 $ 329,278
========== ==========

Use of Non-GAAP Measures

EMCORE provides non-GAAP gross profit and gross margin, non-GAAP operating
loss, and non-GAAP net loss and net loss per share as supplemental measures
to GAAP regarding our operational performance. These financial measures
exclude the impact of certain items and, therefore, have not been
calculated in accordance with GAAP. A detailed explanation of each of the
adjustments to such financial measures is described below. This press
release also contains a reconciliation of each of these non-GAAP financial
measures to its most comparable GAAP financial measure.

EMCORE believes that the additional non-GAAP measures are useful to
investors in assessing the Company's financial condition and performance.
In particular, management believes it is appropriate in evaluating EMCORE's
operations to exclude gains or losses from specific accounts receivable and
inventory write-downs, loss from firm purchase commitments, patent
litigation and other corporate legal-related charges; impairment charges;
and warranty, severance and restructuring-related expenses because these
items would make results less comparable between periods. Management also
uses these measures internally to evaluate the Company's operating
performance, and the measures are used for planning and forecasting of
future periods. In addition, many financial analysts that follow our
Company focus on and publish both historical results and future projections
based on non-GAAP financial measures. We believe that it is in the best
interest of our investors to provide this information to analysts so that
they accurately report the non-GAAP financial information. However,
non-GAAP measures are not in accordance with, nor are they a substitute
for, GAAP measures.

While management believes that these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of these non-GAAP financial measures. These
non-GAAP financial measures are not prepared in accordance with GAAP, may
not be reported by all of the Company's competitors and may not be directly
comparable to similarly titled measures of the Company's competitors due to
potential differences in the exact method of calculation. The Company
compensates for these limitations by using these non-GAAP financial
measures as supplements to GAAP financial measures and by reviewing the
reconciliations of the non-GAAP financial measures to their most comparable
GAAP financial measures.

Non-GAAP financial measures are not in accordance with, or an alternative
for, generally accepted accounting principles in the United States. The
Company's non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial measures, and
should be read only in conjunction with the Company's consolidated
financial statements prepared in accordance with GAAP.

The Company has provided a reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial measures as
indicated in the tables listed below:

Non-GAAP Table
Gross profit (loss) and margin
Unaudited
(in thousands, except
percentages)

Three Months Ended Three Months Ended
March 31, 2009 June 30, 2009
---------------------------- ----------------------------
Fiber Photovol- Fiber Photovol-
Optics taics Total Optics taics Total
-------- -------- -------- -------- -------- --------

Gross (loss)
profit - GAAP $ (3,330) $ (3,675) $ (7,005) $ (7,889) $ 5,461 $ (2,428)

Specific
adjustments:
Inventory
valuation 1,468 5,663 7,131 1,919 - 1,919
Loss on
commitments - - - 6,380 - 6,380
Product
warranty 248 1,056 1,304 - - -
-------- -------- -------- -------- -------- --------

Gross (loss)
profit -
Non-GAAP $ (1,614) $ 3,044 $ 1,430 $ 410 $ 5,461 $ 5,871
======== ======== ======== ======== ======== ========

Gross margin -
GAAP (11.7%) (24.7%) (16.2%) (35.2%) 33.9% (6.3%)
======== ======== ======== ======== ======== ========

Gross margin -
Non-GAAP (5.7%) 20.5% 3.3% 1.8% 33.9% 15.3%
======== ======== ======== ======== ======== ========

Non-GAAP Table Three Months Three Months
Operating Loss Ended March 31, Ended June 30,
Unaudited 2009 2009
(in thousands) ------------- -------------

Operating loss - GAAP $ (25,862) $ (45,996)

Specific adjustments:
Impairments - 27,000
Provision for doubtful accounts 1,717 2,112
Corporate legal expense 836 1,325
Severance and restructuring-related expense 294 57
Inventory valuation adjustments 7,131 1,919
Loss on commitments - 6,380
Product warranty adjustments 1,304 -
------------- -------------

Operating loss - Non-GAAP $ (14,580) $ (7,203)
============= =============

Non-GAAP Table Three Months Three Months
Net Loss Ended March 31, Ended June 30,
Unaudited 2009 2009
(in thousands) ------------- -------------

Net loss - GAAP $ (23,739) $ (45,353)

Specific adjustments:
Impairments - 27,000
Provision for doubtful accounts 1,717 2,112
Corporate legal expense 836 1,325
Severance and restructuring-related expense 294 57
Inventory valuation adjustments 7,131 1,919
Loss on commitments - 6,380
Product warranty adjustments 1,304 -
Gain from sale of investments (3,144) -
Foreign exchange (gain) loss 908 (745)
------------- -------------

Net loss - Non-GAAP $ (14,693) $ (7,305)
============= =============

Net loss per basic and diluted share -
GAAP $ (0.30) $ (0.57)
============= =============

Net loss per basic and diluted share -
Non-GAAP $ (0.19) $ (0.09)
============= =============