EMCORE Corporation Acquires Opticomm Corporation
Acquisition enhances EMCORE's position in the video transport market
SOMERSET, N.J., April 16 / -- EMCORE Corporation (NASDAQ:EMKR), a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and solar power markets, today announced that it has acquired privately-held Opticomm Corporation of San Diego, California, including its fiber optic video, audio and data networking business, technologies, and intellectual property. The stock purchase transaction closed on Friday, April 13, 2007. EMCORE paid $4 million initial consideration for all of the shares of Opticomm. EMCORE also agreed to an additional earn-out payment based on Opticomm's 2007 revenues. EMCORE management anticipates that this transaction will provide approximately $7 million of revenue for calendar year 2007, and upon integration will be operationally profitable. In 2006, Opticomm generated profitable revenues of $6.3 million.
Founded in 1986, Opticomm is one of the leading specialists in the field of fiber optic video, audio and data networking for the commercial, governmental and industrial sectors. Its flagship product is the Optiva Platform, a complete line of transmission systems built to address the primary optical communication requirements of the following markets:
oBroadcast and Media
oSecurity and Surveillance
oHealthcare
oTraffic and Rail
oGovernment and Military
"We are very pleased to welcome Opticomm and its well-known Optiva line to the EMCORE family. This represents a tremendous opportunity to increase EMCORE's presence in the rapidly expanding video transport market," said Chris Larocca, Vice President and General Manager of EMCORE's Ortel division. "This transaction enables EMCORE to integrate the complementary technologies added from the recent acquisition of Force Inc. into a single, high-density and modular platform. The combined product line uniquely positions EMCORE as a leading supplier of products to aggregate, process and transport video signals to IP, HFC, FTTx and wireless networks."
"We are excited to join EMCORE, where Opticomm's product line, technology and worldwide market presence will both expand EMCORE's current video offerings, as well as benefit from the increased resources and experience available in the Ortel Division," said David Caidar, President of Opticomm.
About EMCORE:
EMCORE Corporation offers a broad portfolio of compound semiconductor- based products for the broadband, fiber optic, satellite and solar power markets. EMCORE's Fiber Optic segment offers optical components, subsystems and systems for high-speed data and telecommunications networks, cable television (CATV) and fiber-to-the-premises (FTTP). EMCORE's Photovoltaic segment provides products for both satellite and terrestrial applications. For satellite applications, EMCORE offers high efficiency Gallium Arsenide (GaAs) solar cells, Covered Interconnect Cells (CICs) and panels. For terrestrial applications, EMCORE is adapting its high-efficiency GaAs solar cells for use in solar concentrator systems. For further information about EMCORE, visit http://www.emcore.com/.
Source: EMCORE
CONTACT:Frank Weiss, Director of Video Business Development of EMCORE Corporation, +1-215-259-2400, frank_weiss@emcore.com
Web site: http://www.emcore.com/
