Following the divestiture of its space photovoltaics business and the overall refocusing of the company, EMCORE Corp. (NASDAQ:EMKR) says it’s now in the market for a new chief executive officer. EMCORE’s current president and CEO, Dr. Hong Q. Hou, is stepping down. He also will resign from the company’s board of directors once his replacement arrives.
The board of directors has formed a search committee to oversee the replacement process. The committee includes board members Dr. Gerald Fine, Dr. James Tegnelia, and Stephen Domenik.
The divestiture of the space photovoltaics business – to Veritas Capital for $150 million in cash, pending approvals – comes after the company revealed last December that it would form a committee to investigate strategic alternatives for the company. That committee included board member Steven Becker as well as Domenik and Tegnelia, with Wall Strett firm Raymond James as advisor. The announced sale of the space photovoltaics business to Veritas is the first major outcome of the committee’s activities.
What comes next is unclear. In announcing the proposed asset sale, EMCORE said that the committee "has undertaken a thorough review of the remaining operations and has implemented significant cost reduction measures." It also has seen improved performance and market conditions for its mainstream fiber optics business. The EMCORE board says it now believes the remaining business can achieve EBITDA break-even (excluding stock compensation, amortization, accretion, and "other items") by September 2015.
That said, EMCORE asserts it will "continue to review and implement various initiatives to further reduce the cost structure."
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