Semiconductor-based components and satellite solar panel developer Emcore has announced the completion of its company-wide restructuring following the sale of its terrestrial concentrating photovoltaics (CPV) assets.
Emcore has entered into an asset…
Semiconductor-based components and satellite solar panel developer Emcore has announced the completion of its company-wide restructuring following the sale of its terrestrial concentrating photovoltaics (CPV) assets.
Emcore has entered into an asset purchase agreement with Suncore Photovoltaics, a joint venture owned 40% by Emcore and 60% by China-based San’An Optoelectronics. Under the terms of the transaction, Emcore has agreed to sell substantially all of the assets used in its CPV product line, including fixed assets and intellectual property, to the JV, which in turn will assume all associated liabilities.
Financial details regarding the sale, which is expected to be completed by early November 2012, were not disclosed.
The deal comes four months after Emcore closed the sale of its enterprise product lines to Sumitomo Electric Device Innovations USA. Both asset sales were part of the company’s realignment strategy to focus on its core, more profitable fibre optic and satellite solar panel businesses. Emcore estimates that losses from both the enterprise and CPV product lines over the past year were approximately US$15m.
Emcore’s chief operating officer Christopher Larocca commented: “This announcement will allow Emcore to focus its efforts on our core competency of multi-junction solar cell technology for both space and terrestrial power applications.”
In addition to the business restructuring Emcore has undertaken a management realignment with the elimination of the position of executive chairman. That role has been held by Reuben Richards since 2008, initially in order to help facilitate a CEO transition and succession plan.
Richards, who has played a central role in Emcore’s growth since joining as its COO in 1995, will remain the company’s chairman.
In its Q3 2012 conference call on 7 August, Emcore’s chief executive Hong Hou stated: “A year ago, Emcore’s management presented to its Board of Directors an in-depth analysis on the business strength and growth opportunities of every product line. Given the market dynamics and the competitive landscape in the optical component and solar power industries, we decided to focus our business plan to providing enabling and disruptive technical solutions in selected areas of fibre optic communications and solar photovoltaics by leveraging our compound semiconductor material and device expertise.
“With that strategic focus being defined we started formulating a restructuring plan. I am happy to report that we have now completed the business and management realignment positioning the company on the path for sustainable growth and profitability.”
