EMKR - EMCORE Restructuring Update: Personnel Reduction and Alhambra Closure | Benzinga
BUDD LAKE, NJ, May 23, 2024 (GLOBE NEWSWIRE) -- EMCORE Corporation (NASDAQ:EMKR), the world's largest independent provider of inertial navigation solutions to the aerospace and defense industry, today announced personnel and expense reduction actions, including the planned full closure of the Alhambra, CA site.
Personnel reductions are expected to result in annualized savings of approximately $17 million and are the first stage of a restructuring program that is expected to include additional actions designed to further reduce annualized operating costs in an expedited manner. While the personnel reductions are significant and represent approximately 40% of EMCORE's workforce, they are designed to enable EMCORE to execute on its current and planned business base. The Company expects the Alhambra shutdown to be fully completed during the fourth fiscal quarter ending September 30, 2024. Restructuring charges, including severance, facility consolidation, and other related items, are expected to be finalized and recorded in the third fiscal quarter ending June 30, 2024.
"This personnel reduction and facility closure represent a critical set of initial steps to achieve adjusted cash flow break even ahead of September 30, 2024," said Cletus Glasener, Chairman of the Board of EMCORE. "These actions and other anticipated cost reduction and performance improvement measures are critical to best position EMCORE for success moving forward."
"The EMCORE Board and leadership team express their sincere gratitude for the service of the individuals affected by these reductions and wish them well," added Mr. Glasener.
About EMCORE
EMCORE Corporation is a leading provider of inertial navigation products for the aerospace and defense markets. We leverage industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, Lithium Niobate, and chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its facilities in Budd Lake, NJ, Concord, CA, and Tinley Park, IL. Our manufacturing facilities maintain ISO 9001 quality management certification, and we are AS9100 aerospace quality certified in Budd Lake and Concord. For further information about EMCORE, please visit 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 ("Exchange Act"). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results, including ...