Q2 2024 EMCORE Corp Earnings Call Transcript
Key Points
- EMCORE Corp (EMKR) successfully completed the sale of its discontinued chips business line and Alhambra indium phosphide wafer fab, generating $2.92 million in cash proceeds.
- The company has established a restructuring committee to direct necessary cost reductions and restructuring, aiming for adjusted cash flow breakeven by the end of September 2024.
- EMCORE Corp (EMKR) has entered into a new lending agreement with Hale Capital, providing additional financial flexibility for necessary changes.
- The company anticipates flat to slightly up quarterly revenues between the back half of fiscal '24 and early fiscal '25, with a return to top line growth expected in the first half of fiscal '25.
- EMCORE Corp (EMKR) has a current book of business backlog and opportunity pipeline that supports the expected return to top line growth.
- Revenue for fiscal 2Q was $19.6 million, a decrease from the prior quarter's $24.1 million, primarily due to delayed orders and material arrival issues.
- Gross margin significantly decreased to 15% in fiscal 2Q from 29% the previous quarter, impacted by lower revenue and production yield issues.
- Operating loss widened to $6.9 million in the March quarter from $2.6 million in the December quarter, with negative adjusted EBITDA of $5.8 million.
- EMCORE Corp (EMKR) experienced a cash balance decrease, ending the quarter with $12 million compared to $20 million at the end of the previous quarter.
- The company faces ongoing challenges with revenue decline from its Bud Lake site following the cancellation of the Team We project and needs to implement significant cost structure adjustments.
Thank you for standing by. My name is Benjamin, and I will be your conference operator today. At this time, I would like to welcome everyone to Amcor Corporation's fiscal 2024 second quarter results conference call. All lines have been placed on mute to prevent any background noise.
After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I would like to turn the call over to Tom and he CELLO Amcor's Chief Financial Officer. Please go ahead.
Thank you, Benjamin, and good afternoon, everyone, and welcome to our conference call to discuss Amcor's fiscal 2024 second quarter results. The news release we issued this afternoon is posted on our website, amcor.com. Joining me on the call today is clearest glass and-or Chairman of the Board, and Matt Vargas, Vice President of Sales, Marketing and Business Development.
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