Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36632 | |
Entity Registrant Name | EMCORE Corporation | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2746503 | |
Entity Address, Address Line One | 2015 W. Chestnut Street | |
Entity Address, City or Town | Alhambra | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91803 | |
City Area Code | 626 | |
Local Phone Number | 293-3400 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | EMKR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,160,478 | |
Entity Central Index Key | 0000808326 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 19,717 | $ 25,625 |
Restricted cash | 495 | 520 |
Accounts receivable, net of credit loss of $363 and $337, respectively | 17,451 | 18,073 |
Contract assets | 5,163 | 4,560 |
Inventory | 35,833 | 37,035 |
Prepaid expenses | 3,378 | 4,061 |
Other current assets | 2,431 | 3,063 |
Total current assets | 84,468 | 92,937 |
Property, plant, and equipment, net | 24,388 | 37,867 |
Goodwill | 19,043 | 17,894 |
Operating lease right-of-use assets | 26,534 | 23,243 |
Other intangible assets, net | 15,294 | 14,790 |
Other non-current assets | 2,326 | 2,351 |
Total assets | 172,053 | 189,082 |
Current liabilities: | ||
Accounts payable | 11,164 | 12,729 |
Accrued expenses and other current liabilities | 10,775 | 8,124 |
Contract liabilities | 1,359 | 5,300 |
Loan payable - current | 852 | 852 |
Operating lease liabilities - current | 2,740 | 2,213 |
Total current liabilities | 26,890 | 29,218 |
Line of credit | 6,485 | 9,599 |
Loan payable - non-current | 4,403 | 5,042 |
Operating lease liabilities - non-current | 24,737 | 21,625 |
Asset retirement obligations | 4,143 | 4,664 |
Other long-term liabilities | 8 | 106 |
Total liabilities | 66,666 | 70,254 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Common stock, no par value, 100,000 shares authorized; 61,059 shares issued and 54,153 shares outstanding as of June 30, 2023; 44,497 shares issued and 37,591 shares outstanding as of September 30, 2022 | 807,605 | 787,347 |
Treasury stock at cost; 6,906 shares as of June 30, 2023 and September 30, 2022 | (47,721) | (47,721) |
Accumulated other comprehensive income | 1,380 | 1,301 |
Accumulated deficit | (655,877) | (622,099) |
Total shareholders’ equity | 105,387 | 118,828 |
Total liabilities and shareholders’ equity | $ 172,053 | $ 189,082 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 363 | $ 337 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 61,059,000 | 44,497,000 |
Common stock, shares outstanding (in shares) | 54,153,000 | 37,591,000 |
Treasury stock, shares held (in shares) | 6,906,000 | 6,906,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 26,698 | $ 23,675 | $ 78,471 | $ 98,561 |
Cost of revenue | 23,198 | 19,777 | 68,201 | 69,849 |
Gross profit | 3,500 | 3,898 | 10,270 | 28,712 |
Operating expense: | ||||
Selling, general, and administrative | 6,452 | 7,800 | 26,347 | 22,550 |
Research and development | 5,171 | 4,513 | 16,319 | 13,675 |
Severance | 1,838 | 0 | 2,296 | 1,318 |
Gain on sale of assets | 0 | (1,318) | (1,147) | (1,919) |
Total operating expense | 13,461 | 10,995 | 43,815 | 35,624 |
Operating loss | (9,961) | (7,097) | (33,545) | (6,912) |
Other income (expense): | ||||
Interest (expense) income, net | (219) | 9 | (682) | (14) |
Foreign exchange gain (loss) | 321 | (185) | 442 | (160) |
Other income (expense) | 31 | (349) | 184 | (349) |
Total other income (expense) | 133 | (525) | (56) | (523) |
Loss before income tax expense | (9,828) | (7,622) | (33,601) | (7,435) |
Income tax expense | (29) | (27) | (177) | (25) |
Net loss | (9,857) | (7,649) | (33,778) | (7,460) |
Foreign exchange translation adjustment | (134) | 69 | (79) | 91 |
Comprehensive loss | $ (9,991) | $ (7,580) | $ (33,857) | $ (7,369) |
Per share data: | ||||
Net loss per basic share (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Weighted-average number of basic shares outstanding (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
Net loss per diluted share (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Weighted-average number of diluted shares outstanding (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated other comprehensive income | Accumulated deficit |
Beginning balance (in shares) at Sep. 30, 2021 | 36,984 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 553 | ||||
Stock option exercises (in shares) | 6 | ||||
Sale of common stock (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 37,543 | ||||
Balance, beginning of period at Sep. 30, 2021 | $ 782,266 | $ (47,721) | $ 687 | $ (597,766) | |
Shares of common stock | |||||
Stock-based compensation | 3,755 | ||||
Stock option exercises | 29 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (307) | ||||
Sale of common stock | 0 | ||||
Translation adjustment | $ 91 | 91 | |||
Net loss | (7,460) | (7,460) | |||
Balance, end of period at Jun. 30, 2022 | 133,574 | $ 785,743 | (47,721) | 778 | (605,226) |
Beginning balance (in shares) at Mar. 31, 2022 | 37,395 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 148 | ||||
Stock option exercises (in shares) | 0 | ||||
Sale of common stock (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 37,543 | ||||
Balance, beginning of period at Mar. 31, 2022 | $ 784,371 | (47,721) | 709 | (597,577) | |
Shares of common stock | |||||
Stock-based compensation | 1,523 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (151) | ||||
Sale of common stock | 0 | ||||
Translation adjustment | 69 | 69 | |||
Net loss | (7,649) | (7,649) | |||
Balance, end of period at Jun. 30, 2022 | $ 133,574 | $ 785,743 | (47,721) | 778 | (605,226) |
Beginning balance (in shares) at Sep. 30, 2022 | 37,591 | 37,591 | |||
Shares of common stock | |||||
Stock-based compensation (in shares) | 1,107 | ||||
Stock option exercises (in shares) | 0 | ||||
Sale of common stock (in shares) | 15,455 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 54,153 | 54,153 | |||
Balance, beginning of period at Sep. 30, 2022 | $ 787,347 | (47,721) | 1,301 | (622,099) | |
Shares of common stock | |||||
Stock-based compensation | 4,982 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (161) | ||||
Sale of common stock | 15,437 | ||||
Translation adjustment | $ (79) | 79 | |||
Net loss | (33,778) | ||||
Balance, end of period at Jun. 30, 2023 | $ 105,387 | $ 807,605 | (47,721) | 1,380 | (655,877) |
Beginning balance (in shares) at Mar. 31, 2023 | 53,884 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 269 | ||||
Stock option exercises (in shares) | 0 | ||||
Sale of common stock (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 54,153 | 54,153 | |||
Balance, beginning of period at Mar. 31, 2023 | $ 806,100 | (47,721) | 1,246 | (646,020) | |
Shares of common stock | |||||
Stock-based compensation | 1,713 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (17) | ||||
Sale of common stock | (191) | ||||
Translation adjustment | $ (134) | 134 | |||
Net loss | (9,857) | ||||
Balance, end of period at Jun. 30, 2023 | $ 105,387 | $ 807,605 | $ (47,721) | $ 1,380 | $ (655,877) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (33,778) | $ (7,460) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization expense | 6,496 | 3,292 |
Stock-based compensation expense | 4,982 | 3,755 |
Provision adjustments related to credit loss | 25 | 187 |
Provision adjustments related to product warranty | (57) | 174 |
Gain on disposal of property, plant, and equipment | (1,147) | (1,919) |
Other | 124 | 299 |
Total non-cash adjustments | 10,423 | 5,788 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | (7) | 7,306 |
Inventory | (2,158) | 3,380 |
Other assets | (2,000) | (5,263) |
Accounts payable | (1,230) | (4,706) |
Contract liabilities | (3,941) | 2,650 |
Operating lease liabilities - current | 527 | (487) |
Accrued expenses and other liabilities | 5,729 | 6,941 |
Total change in operating assets and liabilities | (3,080) | 9,821 |
Net cash (used in) provided by operating activities | (26,435) | 8,149 |
Cash flows from investing activities: | ||
Purchase of equipment | (2,026) | (4,743) |
Proceeds from disposal of property, plant, and equipment | 10,915 | 2,820 |
Acquisition of business, net of cash acquired | 96 | (2,439) |
Net cash provided by (used in) investing activities | 8,985 | (4,362) |
Cash flows from financing activities: | ||
Proceeds from borrowings from line of credit | 393 | 0 |
Payments towards line of credit | (3,507) | 0 |
Payments towards note payable | (639) | 0 |
Proceeds from sale of common stock | 15,437 | 0 |
Proceeds from employee stock purchase plans and exercise of equity awards | 0 | 29 |
Taxes paid related to net share settlement of equity awards | (161) | (307) |
Net cash provided by (used in) financing activities | 11,523 | (278) |
Effect of exchange rate changes provided by foreign currency | (6) | (62) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (5,933) | 3,447 |
Cash, cash equivalents, and restricted cash at beginning of period | 26,145 | 71,682 |
Cash, cash equivalents, and restricted cash at end of period | 20,212 | 75,129 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 932 | 40 |
Cash paid during the period for income taxes | 120 | 547 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (373) | $ (76) |
Description of Business
Description of Business | 9 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessEMCORE Corporation (referred to herein, together with its subsidiaries, as the “Company,” “we,” “our,” or “EMCORE”) is a leading provider of inertial navigation products for the aerospace and defense markets. We leverage industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, and Lithium Niobate chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. Over the last four years, we have expanded our scale and portfolio of inertial sensor products through the acquisitions of Systron Donner Inertial, Inc. (“SDI”) in June 2019, the Space and Navigation (“S&N”) business of L3Harris Technologies, Inc. (“L3H”) in April 2022, and the FOG and Inertial Navigation Systems business (“EMCORE Chicago”) of KVH Industries, Inc. (“KVH”) in August 2022. We have vertically-integrated manufacturing capability at our headquarters in Alhambra, CA, and at our facilities in Budd Lake, NJ, Concord, CA, and Tinley Park, IL (the “Tinley Park Facility”). Our manufacturing facilities maintain ISO 9001 quality management certification, and we are AS9100 aerospace quality certified at our headquarters in Alhambra, CA and at our facilities in Budd Lake, NJ and Concord, CA. These facilities support our vertically-integrated manufacturing strategy for quartz, FOG, and Ring Laser Gyro products for navigation systems. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2022 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors, and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. We follow the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Intangibles-Goodwill and Other (“ASC 350”). ASC 350 requires the completion of a goodwill impairment test at least annually based on either an optional qualitative assessment or a quantitative analysis comparing the estimated fair value of a reporting unit to its carrying value as of the test date. In the current interim period ending June 30, 2023, we have elected to change our annual test date from December 31st of each year to July 1st of each year, unless there are indications requiring a more frequent impairment test. Any impairment charges would be based on the quantitative analysis. We performed our last test at December 31, 2022 and will perform our next test on July 1, 2023. Going Concern These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles assuming we will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about our ability to continue as a going concern exists. We have recently experienced significant losses from our operations and used a significant amount of cash, amounting to a net loss of $33.8 million and net cash outflows from operations of $26.4 million for the nine months ended June 30, 2023, and we expect to continue to incur losses and use cash in our operations as we continue to restructure our business. As a result of our recent cash outflows, we have taken actions to manage our liquidity and will need to continue to manage our liquidity as we continue to restructure our operations to focus on our Aerospace & Defense business. As of June 30, 2023, our cash and cash equivalents totaled $20.2 million and we had $10.6 million available under our Credit Agreement (as defined in Note 11 - Credit Agreement in the Notes to Condensed Consolidated Financial Statements). We are evaluating the sufficiency of our existing balances of cash and cash equivalents, cash flows from operations, and amounts expected to be available under our Credit Agreement, together with additional actions we could take (including those made in connection with our restructuring program announced in April 2023) to further reduce our expenses and/or potentially raising capital through additional debt or equity issuances, or from the potential monetization of certain assets. However, we may not be successful in executing on our plans to manage our liquidity, including recognizing the expected benefits from our previously announced restructuring program, or raising additional funds if we elect to do so, and as a result substantial doubt about our ability to continue as a going concern exists. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Such estimates include accounts receivable, inventories, goodwill, long-lived assets, product warranty liabilities, legal contingencies, income taxes, asset retirement obligations, and pension obligation, as well as the evaluation associated with the Company's assessment of its ability to continue as a going concern. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On August 9, 2022, we completed the acquisition of EMCORE Chicago, pursuant to which we acquired substantially all of KVH's assets and liabilities primarily related to its FOG and Inertial Navigation Systems business, including property interests in the Tinley Park Facility, for aggregate consideration of approximately $55.0 million, exclusive of transaction costs and expenses and subject to certain post-closing working capital adjustments. Following the closing, EMCORE Chicago results are included in our A&D reportable segment and in our consolidated financial statements beginning on the acquisition date. Revenue and net income of EMCORE Chicago of $9.3 million and $0.4 million, respectively, is included in our condensed consolidated statements of operations and comprehensive loss for the three months ended June 30, 2023. Revenue and net income of EMCORE Chicago of $25.9 million and $2.1 million, respectively, is included in our condensed consolidated statements of operations and comprehensive loss for the nine months ended June 30, 2023. Final Purchase Price Allocation The total purchase price for the EMCORE Chicago acquisition was allocated to the assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date. Since the acquisition, the purchase price allocation for EMCORE Chicago changed by a $3.3 million reduction to inventory resulting in a corresponding increase to intangible assets and goodwill acquired. Goodwill is measured as the excess of the fair value of the purchase consideration transferred over the fair value of the identifiable net assets. The table below represents the final purchase price allocation to the assets acquired and liabilities assumed of EMCORE Chicago based on their estimated fair values as of the acquisition date based on management’s best estimates and assumptions: (in thousands) Amount Tangible assets acquired: Accounts receivable $ 4,977 Inventory 7,479 Prepaid expenses and other current assets 1,483 Property, plant, and equipment 14,442 Intangible assets acquired 13,470 Goodwill 15,867 Liabilities assumed: Accounts payable (1,699) Accrued expenses (485) Contract liabilities (637) Other long-term liabilities (8) Total purchase consideration $ 54,889 Included in intangible assets acquired are customer relationships of $3.0 million, technology of $2.4 million, in-process research and development of $5.9 million, and trademarks of $2.2 million. For the three and nine months ended June 30, 2023, the Company incurred transitional and transaction costs of approximately $0.3 million and $3.6 million, respectively, in connection with the S&N and EMCORE Chicago acquisitions, which were expensed as incurred and included in selling, general, and administrative (“SG&A”) expenses within the accompanying condensed consolidated statements of operations and comprehensive loss. Goodwill from the acquisition totaled $15.9 million which is 83.3% of total goodwill. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information presented for the three and nine months ended June 30, 2022 does not purport to be indicative of the results of operations that would have been achieved had the EMCORE Chicago acquisition been consummated on October 1, 2021, nor of the results which may occur in the future. The pro forma amounts are based upon available information and certain assumptions that the Company believes are reasonable. Three Months Ended June 30, 2022 Historical (in thousands, except per share data) EMCORE Corporation EMCORE Chicago Pro Forma Adjustments Pro Forma Combined Revenue $ 23,675 $ 7,698 $ — $ 31,373 Cost of revenue 19,777 5,827 171 (a) 25,775 Gross profit 3,898 1,871 (171) 5,598 Operating expense: Selling, general, and administrative 7,800 2,905 (1,026) (a)(b) 9,679 Research and development 4,513 1,443 (264) (a)(b) 5,692 Severance — — — — Gain on sale of assets (1,318) — — (1,318) Total operating expense 10,995 4,348 (1,290) 14,053 Operating loss (7,097) (2,477) 1,119 (8,455) Other expense: Interest income, net 9 — 318 (c) 327 Foreign exchange loss (185) — — (185) Other expense (349) 34 — (315) Total other expense (525) 34 318 (173) Loss before income tax expense (7,622) (2,443) 1,437 (8,628) Income tax expense (27) (13) (6) (d)(e) (46) Net loss (7,649) (2,456) 1,431 (8,674) Foreign exchange translation adjustment 69 — — 69 Comprehensive loss $ (7,580) $ (2,456) 1,431 $ (8,605) Per share data: Net loss per basic share $ (0.20) $ — $ (0.23) Weighted-average number of basic shares outstanding 37,425 — 37,425 Net loss per diluted share $ (0.20) $ — $ (0.23) Weighted-average number of diluted shares outstanding 37,425 — 37,425 Nine Months Ended June 30, 2022 Historical (in thousands, except per share data) EMCORE Corporation EMCORE Chicago Pro Forma Adjustments Pro Forma Combined Revenue $ 98,561 $ 23,094 $ — $ 121,655 Cost of revenue 69,849 17,482 512 (a) 87,843 Gross profit 28,712 5,612 (512) 33,812 Operating expense: Selling, general, and administrative 22,550 8,329 (3,077) (a)(b) 27,802 Research and development 13,675 4,330 (793) (a)(b) 17,212 Severance 1,318 — — 1,318 Gain on sale of assets (1,919) — — (1,919) Total operating expense 35,624 12,659 (3,870) 44,413 Operating loss (6,912) (7,047) 3,358 (10,601) Other expense: Interest expense, net (14) — 954 (c) 940 Foreign exchange loss (160) — — (160) Other expense (349) 102 — (247) Total other expense (523) 102 954 533 Loss before income tax expense (7,435) (6,945) 4,312 (10,068) Income tax expense (25) (38) (17) (d)(e) (80) Net loss (7,460) (6,983) 4,295 (10,148) Foreign exchange translation adjustment 91 — — 91 Comprehensive loss $ (7,369) $ (6,983) 4,295 $ (10,057) Per share data: Net loss per basic share $ (0.20) $ — $ (0.27) Weighted-average number of basic shares outstanding 37,197 — 37,197 Net loss per diluted share $ (0.20) $ — $ (0.27) Weighted-average number of diluted shares outstanding 37,197 — 37,197 (a) Reflects the impact to depreciation expense and amortization expense as a result of the change in fair value of property, plant, and equipment and intangible assets acquired. (b) Reflects the deduction of various sales, general, and administrative and research and development expenses allocated from corporate overhead to EMCORE Chicago during the periods presented that will not be incurred on an ongoing basis as a result of existing EMCORE management structures in place, which will provide the same support to EMCORE Chicago upon completion of a transition services agreement entered into between EMCORE and KVH in connection with the EMCORE Chicago acquisition. Amounts were estimated based on historical allocation included in the stand-alone financial statements of EMCORE Chicago. However, actual costs to be incurred associated with corporate support may vary under the EMCORE structure. (c) Reflects the impact of interest expense related to cash from borrowing facility for funding of the transaction. (d) Reflects the current tax expense due to additional income and deferred income tax expense related to deferred tax liability generated from annual tax amortization of indefinite-lived assets that were acquired for the periods presented. Such amounts were determined based on the effective tax rate of EMCORE rather than statutory tax rates as a result of a tax valuation allowance covering substantially all deferred tax assets and the existence of tax loss carryforwards present at both entities. (e) Reflects the deduction of the income tax expense related to the FIN 48 liability of EMCORE Chicago that is not assumed by EMCORE. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: (in thousands) June 30, 2023 September 30, 2022 Cash $ 13,936 $ 20,011 Cash equivalents 5,781 5,614 Restricted cash 495 520 Total cash, cash equivalents, and restricted cash $ 20,212 $ 26,145 |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net The components of accounts receivable, net consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Accounts receivable, gross $ 17,814 $ 18,410 Allowance for credit loss (363) (337) Accounts receivable, net $ 17,451 $ 18,073 |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Raw materials $ 21,714 $ 22,927 Work in-process 9,005 9,587 Finished goods 5,114 4,521 Inventory $ 35,833 $ 37,035 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 9 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | Property, Plant, and Equipment, net The components of property, plant, and equipment, net consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Land $ — $ 995 Building — 8,805 Equipment 47,711 42,330 Furniture and fixtures 1,571 1,394 Computer hardware and software 3,377 3,378 Leasehold improvements 9,794 7,180 Construction in progress 3,278 9,886 Property, plant, and equipment, gross $ 65,731 $ 73,968 Accumulated depreciation (41,343) (36,101) Property, plant, and equipment, net $ 24,388 $ 37,867 Depreciation expense totaled $2.4 million and $5.4 million during the three and nine months ended June 30, 2023, respectively and $1.2 million and $3.2 million during the three and nine months ended June 30, 2022, respectively. During the nine months ended June 30, 2023, the Company consummated the sale of the real property interests in the Tinley Park Facility to 8400 W 185TH STREET INVESTORS, LLC, resulting in net proceeds of approximately $10.3 million and a gain on sale of assets of $1.2 million. During the three and nine months ended June 30, 2022, we sold certain equipment and incurred a gain on sale of assets of $1.3 million and $1.9 million, respectively. During the quarter ended September 30, 2022, there was a triggering event of negative cash flows and operating losses at the FOG asset group level within the Inertial Navigation product line of the A&D segment that indicated the carrying amounts of our long-lived assets may not be recoverable. In accordance with ASC 360, with regard to our long-lived assets, we performed an undiscounted cash flow analysis and concluded that the carrying value of the asset group was not recoverable. Accordingly, we then performed an analysis to estimate the fair value of the other long-lived assets and recognized an impairment charge within operating expenses of $3.0 million against the FOG property, plant, and equipment by the amount by which the carrying value of the asset group's other long-lived assets exceeded their estimated fair value for the fiscal year ended September 30, 2022. Key assumptions utilized in the determination of fair value include expected future cash flows and working capital requirements. While we believe the expectations and assumptions about the future are reasonable, they are inherently uncertain. During the quarter ended June 30, 2023, the Company announced a restructuring program which caused the Company to accelerate depreciation on the Broadband segment and defense optoelectronics assets to an end-of-life date of December 2023, resulting in depreciation expense of $0.8 million for each of the three and nine months ended June 30, 2023. Geographical Concentrations Long-lived assets consist of land, building, property, plant, and equipment. As of June 30, 2023 and September 30, 2022, 95.4% and 95.4%, respectively, of our long-lived assets were located in the United States. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets arose from the acquisition of SDI in fiscal year 2019 and the acquisitions of S&N and EMCORE Chicago in fiscal year 2022 and are reported within the A&D segment. Definite-lived intangible assets are amortized on a straight-line basis over the estimated useful life of: (a) 7.0 years for patents, (b) 8.0 years for customer relationships, and (c) 2.0-8.0 years for technology. In-process research and development (“IPR&D”) is indefinite-lived until completion of the related development project, at which point amortization of the carrying value of the technology will commence. Trademarks are indefinite-lived. The following table summarizes changes in intangible assets, net: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 14,790 $ 167 Changes from acquisition 1,470 14,740 Amortization (966) (117) Balance at end of period $ 15,294 $ 14,790 The weighted average remaining useful lives by definite-lived intangible asset category are as follows: June 30, 2023 (in thousands, except weighted average remaining life) Weighted Average Remaining Life (in years) Gross Carrying Amount Accumulated Amortization Net Book Value Technology 2.7 $ 11,001 $ (8,750) $ 2,251 Customer relationships 3.8 4,690 (527) 4,163 Definite-lived intangible assets total $ 15,691 $ (9,277) $ 6,414 As of June 30, 2023, IPR&D and trademarks were approximately $6.7 million and $2.2 million, respectively. September 30, 2022 (in thousands, except weighted average remaining life) Weighted Average Remaining Life (in years) Gross Carrying Amount Accumulated Amortization Net Book Value Technology 5.4 $ 10,991 $ (8,261) $ 2,730 Customer relationships 4.6 3,260 (50) 3,210 Definite-lived intangible assets total $ 14,251 $ (8,311) $ 5,940 As of September 30, 2022, IPR&D and trademarks were approximately $6.7 million and $2.2 million, respectively. Estimated future amortization expense for intangible assets recorded by the Company as of June 30, 2023 is as follows: (in thousands) Amount 2023 $ 309 2024 1,218 2025 1,192 2026 790 2027 766 Thereafter 2,139 Total amortization expense $ 6,414 Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. None of the Company's goodwill is deductible for tax purposes. The following table summarizes changes in goodwill: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 17,894 $ 69 Adjustments to preliminary purchase price allocation 1,149 17,825 Balance at end of period $ 19,043 $ 17,894 |
Benefit Plans
Benefit Plans | 9 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans We assumed a defined benefit pension plan (the “Pension Plan”) on April 29, 2022 as a result of the acquisition of S&N. The Pension Plan was frozen to new hires as of March 31, 2007 and employees hired on or after April 1, 2007 are not eligible to participate in the Pension Plan. On July 1, 2022, the Pension Plan was amended to freeze benefit plan accruals for participants. As a result of the freeze, a curtailment was triggered and a restatement of the benefit obligation and plan assets occurred, although no gain or loss resulted. The annual measurement date for the Pension Plan is September 30. Benefits are based on years of credited service at retirement. Annual contributions to the Pension Plan are not less than the minimum funding standards outlined in the Employee Retirement Income Security Act of 1974, as amended. We maintain the Pension Plan with the goal of ensuring that it is adequately funded to meet its future obligations. We did not make any contributions to the Pension Plan during the three and nine months ended June 30, 2023 and do not anticipate making any contributions for the remainder of the fiscal year ending September 30, 2023. The components of net periodic pension cost are as follows: (in thousands) Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Service cost $ 26 $ 78 Interest cost 93 279 Expected return on plan assets (84) (252) Net periodic pension cost $ 35 $ 105 The service cost component of total pension expense is included as a component of cost of revenue on the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2023. The interest cost and expected return on plan assets components of total pension expense are included as components of other income (expense) on the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2023. Net pension asset is included as a component of other non-current assets on the condensed consolidated balance sheets as of June 30, 2023. As of June 30, 2023, the Pension Plan assets consist of cash and cash equivalents, and we manage a liability driven investment strategy intended to maintain fully-funded status. 401(k) Plan We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Our matching contribution in cash for the three and nine months ended June 30, 2023, was |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Compensation $ 5,796 $ 4,213 Warranty 1,478 1,504 Commissions 389 228 Consulting 277 241 Legal expenses and other professional fees 170 275 Auditor fees 183 186 Income and other taxes 56 — Severance and restructuring accruals 1,732 423 Litigation settlement 72 341 Other 622 713 Accrued expenses and other current liabilities $ 10,775 $ 8,124 The components of accrued severance and restructuring accruals consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 423 $ — Expense 2,296 1,353 Payments (987) (930) Balance at end of period $ 1,732 $ 423 In an effort to better align business operations related to CATV product lines, we reduced our workforce and recorded $1.8 million and $1.3 million in severance expense during the three months ended June 30, 2023 and nine months ended June 30, 2022, respectively. Severance and restructuring-related accruals specifically relate to the reductions in force. Expense related to severance and restructuring accruals is included in SG&A expense on the condensed consolidated statements of operations and comprehensive loss. We expect all severance related to these workforce reductions that occurred in the nine months ended June 30, 2023 to be fully paid by the quarter ending September 30, 2024. |
Credit Agreement
Credit Agreement | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement Wingspire Credit Agreement On August 9, 2022, EMCORE and EMCORE Space & Navigation Corporation, our wholly-owned subsidiary, entered into that certain Credit Agreement with the lenders party thereto and Wingspire Capital LLC (“Wingspire”), as administrative agent for the lenders, as amended pursuant to that First Amendment to Credit Agreement, dated as of October 25, 2022, among EMCORE and EMCORE Space & Navigation Corporation, EMCORE Chicago Inertial Corporation, our wholly-owned subsidiary (together with the Company and S&N, the “Borrowers”), the lenders party thereto and Wingspire, to add EMCORE Chicago as a Borrower and include certain of its assets in the borrowing base (as amended, the “Credit Agreement”). The Credit Agreement provides for two credit facilities: (a) an asset-based revolving credit facility in an aggregate principal amount of up to $40.0 million, subject to a borrowing base consisting of eligible accounts receivable and eligible inventory (subject to certain reserves), and (b) a term loan facility in an aggregate principal amount of approximately $6.0 million. The proceeds of the loans made under the Credit Agreement may be used for general corporate purposes. Borrowings under the Credit Agreement will mature on August 8, 2026, and bear interest at a rate per annum equal to term SOFR plus a margin of (i) 3.75% or 5.50% in the case of revolving loans, depending on the applicable assets corresponding to the borrowing base pursuant to which the applicable loans are made and (ii) 5.50% in the case of the term loan. In addition, the Borrowers are responsible for Wingspire’s annual collateral monitoring fees as well as the lenders’ fees and expenses, including a closing fee of 1.0% of the aggregate principal amount of the commitments as of the closing with respect to revolving loans and 1.50% of the aggregate principal amount of the term loan. The Borrowers may also be required to pay an unused line fee of 0.50% in respect to the undrawn portion of the revolving commitments, which is generally based on average daily usage of the revolving facility during the immediately preceding month. The Credit Agreement contains representations and warranties, affirmative and negative covenants that are generally customary for credit facilities of this type. Among others, the Credit Agreement contains various covenants that, subject to agreed upon exceptions, limit the Borrowers’ and their respective subsidiaries’ ability to incur indebtedness, grant liens, enter into sale and leaseback transactions, enter into swap agreements, make loans, acquisitions and investments, change the nature of their business, acquire or sell assets, or consolidate or merge with or into other persons or entities, declare or pay dividends or make other restricted payments, enter into transactions with affiliates, enter into burdensome agreements, change fiscal year, amend organizational documents, and use proceeds to fund any activities of or business with any person that is the subject of governmental sanctions. In addition, the Credit Agreement requires that, for any period commencing upon the occurrence of an event of default or excess availability under the Credit Agreement being less than the greater of $5.0 million and 15% of the revolving commitments until such time as no event of default shall be continuing and excess availability under the Credit Agreement shall be at least the greater of $5.0 million and 15% of the revolving commitments for a period of 60 consecutive days, the Borrowers satisfy a consolidated fixed charge coverage ratio of not less than 1.10:1.00. The Credit Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of the Borrowers under the Credit Agreement to be immediately due and payable, and exercise rights and remedies available to the lenders under the Credit Agreement or applicable law or equity. In connection with the Credit Agreement, the Borrowers entered into a pledge and security agreement pursuant to which the obligations under the Credit Agreement are secured on a senior secured basis (subject to permitted liens) by substantially all assets of the Borrowers and substantially all assets of any future guarantors. As of June 30, 2023, an aggregate principal amount of $6.5 million was outstanding pursuant to the revolving credit facility and an aggregate principal amount of $5.3 million was outstanding pursuant to the term loan facility. As of September 30, 2022, an aggregate principal amount of $9.6 million was outstanding pursuant to the revolving credit facility and an aggregate principal amount of $5.9 million was outstanding pursuant to the term loan facility. Also, as of June 30, 2023, the revolving credit facility had approximately $10.6 million available for borrowing. Provided that no event of default has occurred, and subject to availability limitations, loans under the revolving credit facility can continue to be drawn/redrawn/outstanding until expiration in 2025. Our future term loan repayments as of June 30, 2023 is as follows: (in thousands) Amount 2023 $ 212 2024 852 2025 852 2026 3,339 Total loan payments $ 5,255 |
Income and Other Taxes
Income and Other Taxes | 9 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes During the three and nine months ended June 30, 2023, the Company recorded an income tax expense of $29 thousand and $177 thousand, respectively, composed primarily of state tax expense and tax expense generated from the tax amortization on acquired indefinitely lived assets. For the three and nine months ended June 30, 2023 the effective tax rate on continuing operations was 0.3% and 0.5%, respectively. During the three and nine months ended June 30, 2022, the Company recorded an income tax expense of $27 thousand and $25 thousand, respectively, composed primarily of Texas gross margin taxes. For the three and nine months ended June 30, 2022 the effective tax rate on continuing operations was 0.4% and 0.3%, respectively. The Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting. We have not provided for income taxes on non-U.S. subsidiaries’ undistributed earnings as of June 30, 2023 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits. All deferred tax assets have a full valuation allowance as of June 30, 2023, except for the tax amortization of indefinitely lived goodwill, which cannot be utilized to reduce deferred tax assets. On a quarterly basis, the Company evaluates the positive and negative evidence to assess whether the more-likely-than-not criteria has been satisfied in determining whether there will be further adjustments to the valuation allowance. As of June 30, 2023 and September 30, 2022, we did not accrue any significant uncertain tax benefit, interest, or penalties as tax liabilities on our condensed consolidated balance sheets. During the three and nine months ended June 30, 2023, there were no material increases or decreases in unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these customer indemnification obligations. We enter into indemnification agreements with each of our directors and executive officers pursuant to which we agree to indemnify them for certain potential expenses and liabilities arising from their status as a director or executive officer of the Company. We maintain directors and officers insurance, which covers certain liabilities relating to our obligation to indemnify our directors and executive officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular claim. Legal Proceedings We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. The outcome of these matters is currently not determinable and we are unable to estimate a range of loss, should a loss occur, from these proceedings. The ultimate outcome of legal proceedings involves judgments, estimates, and inherent uncertainties and the results of these matters cannot be predicted with certainty. Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Should we fail to prevail in any legal matter, or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially affected. Intellectual Property Lawsuits We protect our proprietary technology by applying for patents where appropriate and, in other cases, by preserving the technology, related know-how, and information as trade secrets. The success and competitive position of our product lines are impacted by our ability to obtain intellectual property protection for our research and development efforts. We have, from time to time, exchanged correspondence with third parties regarding the assertion of patent or other intellectual property rights in connection with certain of our products and processes. Resilience Litigation In February 2021, Resilience Capital (“Resilience”) filed a complaint against us with the Delaware Chancery Court containing claims arising from the February 2020 sale of SDI’s real property (the “Concord Property Sale”) located in Concord, California (the “Concord Real Property”) to Eagle Rock Holdings, LP (“Buyer”) and that certain Single-Tenant Triple Net Lease, dated as of February 10, 2020, entered into by and between SDI and the Buyer, pursuant to which SDI leased from the Buyer the Concord Real Property for a 15-year term. The Resilience complaint seeks, among other items, (a) a declaration that the Concord Property Sale included a non-cash component, (b) a decree requiring us and Resilience to follow the appraisal requirements set forth in that certain Purchase and Sale Agreement (the “SDI Purchase Agreement”), dated as of June 7, 2019, by and among the Company, The Resilience Fund IV, L.P., The Resilience Fund IV-A, L.P., Aerospace Newco Holdings, Inc. and Ember Acquisition Sub, Inc., (c) recovery of Resilience’s costs and expenses, and (d) pre- and post-judgment interest. In April 2021, we filed with the Delaware Chancery Court our answer to the Resilience complaint and counterclaims against Resilience, in which we are seeking, among other items, (a) dismissal of the Resilience complaint and/or granting of judgment in favor of EMCORE with respect to the Resilience complaint, (b) entering final judgment against Resilience awarding damages to us for Resilience’s fraud and breaches of the SDI Purchase Agreement in an amount to be proven at trial and not less than $1,565,000, (c) a judicial determination of the respective rights and duties of us and Resilience under the SDI Purchase Agreement, (d) an award to us of costs and expenses, and (e) pre- and post-judgment interest. On April 24, 2023, the Company and Resilience entered into a Settlement and Release Agreement (the “Resilience Settlement Agreement”). The material financial terms of the Resilience Settlement Agreement required (i) a payment of $500,000 by the Company to Resilience, which payment was made by the Company during the three months ended June 30, 2023, (ii) an appraisal of the Concord Real Property as of January 2, 2020, which could trigger a further future payment by the Company in an amount to be determined by said appraisal, and if triggered, is expected to be made during the three months ending September 30, 2023, and (iii) a mutual release of all claims, including claims arising under the SDI Purchase Agreement, and a dismissal of the litigation by all parties. On April 24, 2023, the underwriters of the representation and warranty insurance policies the Company acquired in connection with the SDI Purchase Agreement agreed to pay the Company $1.15 million within 15 business days in exchange for a release of any and all claims under the policies. We received payment during the three months ended June 30, 2023. Contingent Inventory Obligations Pursuant to that certain Manufacturing Supply Agreement, dated August 9, 2021 (as amended, the “Fastrain Manufacturing Agreement”), by and between the Company and each of Shenzhen Fastrain Technology Co., Ltd., Hong Kong Fastrain Company Limited and Fastrain Technology Malaysia SDN. BHD. (collectively, “Fastrain”), we may be liable to Fastrain for certain unused inventory. As of the quarter ended June 30, 2023, we had accrued $0.4 million pursuant to such inventory obligations in connection with our restructuring announced in April 2023 and estimate a potential range of total future additional liability pursuant to such inventory obligations of a minimum of $0 and a maximum of $3.2 million. |
Equity
Equity | 9 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain four equity incentive compensation plans, collectively described as our “Equity Plans”: (a) the 2010 Equity Incentive Plan (the “2010 Plan”), (b) the 2012 Equity Incentive Plan (the “2012 Plan”), (c) the Amended and Restated 2019 Equity Incentive Plan (the “2019 Plan”), and (d) the 2022 New Employee Inducement Plan. We issue new shares of common stock to satisfy awards granted under our Equity Plans. In December 2022, our Board of Directors approved an amendment to the 2019 Plan, which, subject to shareholder approval at our 2023 annual meeting of shareholders, would increase the maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2019 Plan by an additional 1.549 million shares. Stock-Based Compensation The following table sets forth stock-based compensation expense by award type: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 RSUs and RSAs $ 1,113 $ 692 $ 2,869 $ 1,795 PSUs and PRSAs 517 708 1,818 1,602 Outside director equity awards and fees in common stock 83 123 295 358 Total stock-based compensation expense $ 1,713 $ 1,523 $ 4,982 $ 3,755 The following table sets forth stock-based compensation expense by expense type: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of revenue $ 436 $ 275 $ 1,154 $ 604 Selling, general, and administrative 980 1,001 3,006 2,537 Research and development 297 247 822 614 Total stock-based compensation expense $ 1,713 $ 1,523 $ 4,982 $ 3,755 Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Numerator Net loss $ (9,857) $ (7,649) $ (33,778) $ (7,460) Denominator Weighted average number of shares outstanding - basic 53,926 37,425 45,546 37,197 Effect of dilutive securities Stock options — — — — PSUs, RSUs, and restricted stock — — — — Weighted average number of shares outstanding - diluted 53,926 37,425 45,546 37,197 Earnings per share - basic $ (0.18) $ (0.20) $ (0.74) $ (0.20) Earnings per share - diluted $ (0.18) $ (0.20) $ (0.74) $ (0.20) Weighted average antidilutive options, unvested RSUs and RSAs, and unvested PSUs excluded from the computation 3,823 3,163 2,533 1,315 Basic earnings per share (“EPS”) is computed by dividing net (loss) income for the period by the weighted-average number of common stock outstanding during the period. Diluted EPS is computed by dividing net (loss) income for the period by the weighted average number of common stock outstanding during the period, plus the dilutive effect of outstanding restricted stock units (“RSUs”) and restricted stock awards (“RSAs”), performance stock units (“PSUs”), and stock options as applicable pursuant to the treasury stock method. Certain of the Company's outstanding share-based awards, noted in the table above, were excluded because they were anti-dilutive, but they could become dilutive in the future. The anti-dilutive stock options and shares of outstanding and unvested restricted stock were excluded from the computation of earnings per share for the three and nine months ended June 30, 2023 and 2022 due to the Company incurring a net loss for such period. Public Offering On February 17, 2023, we closed our offering of 15,454,546 shares of our common stock at a price of $1.10 per share, resulting in net proceeds to us from the offering, after deducting the placement agent commissions and other offering expenses, of $15.4 million. The shares were sold by us pursuant to a Securities Purchase Agreement, dated as of February 17, 2023, between the Company and each purchaser named in the signature pages thereto and a Placement Agency Agreement, dated as of February 15, 2023, by and between the Company and A.G.P./Alliance Global Partners. Future Issuances Common stock reserved for future issuances as of June 30, 2023 was as follows: Amount Exercise of outstanding stock options 9,981 Unvested RSUs and RSAs 4,491,733 Unvested PSUs and PRSAs (at 100% maximum payout) 1,750,068 Issuance of stock-based awards under the Equity Plans 599,585 Purchases under the officer and director share purchase plan 88,741 Total reserved 6,940,108 |
Segment and Revenue Information
Segment and Revenue Information | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment and Revenue Information | Segment and Revenue Information Reportable Segments Reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker, the Chief Executive Officer, to assess performance and to allocate resources. We do not allocate sales and marketing, general and administrative expenses, or interest expense and interest income to our segments because management does not include the information in its measurement of the performance of the operating segments. Also, a measure of segment assets and liabilities has not been provided to the Company's chief operating decision maker and therefore is not shown below. Information on reportable segments utilized by the chief operating decision maker is as follows: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Revenue Aerospace and Defense $ 27,001 $ 13,416 $ 73,879 $ 32,322 Broadband (303) 10,259 4,592 66,239 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Segment profit Aerospace and Defense gross profit $ 7,163 $ 1,551 $ 16,786 $ 4,468 Aerospace and Defense research and development expense 4,448 3,834 14,050 12,037 Aerospace and Defense gross profit less research and development expense $ 2,715 $ (2,283) $ 2,736 $ (7,569) Broadband gross profit $ (3,663) $ 2,347 $ (6,516) $ 24,244 Broadband research and development expense 723 679 2,269 1,638 Broadband gross profit less research and development expense $ (4,386) $ 1,668 $ (8,785) $ 22,606 Total gross profit less research and development expense $ (1,671) $ (615) $ (6,049) $ 15,037 Product Categories Revenue is classified by major product category as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Aerospace and Defense Inertial Navigation $ 26,718 $ 9,891 $ 70,947 $ 25,651 Defense Optoelectronics 283 3,525 2,932 6,671 Broadband CATV Optical Transmitters and Components 323 7,006 2,270 56,449 Data Center Chips (312) 1,353 885 3,534 Optical Sensing (314) 1,900 1,437 6,256 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Timing of Revenue Revenue is classified by timing of recognition as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Trade revenue (recognized at a point in time) $ 19,667 $ 18,207 $ 58,763 $ 91,056 Contract revenue (recognized over time) 7,031 5,468 19,708 7,505 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Geographical Concentration Revenue is classified by geographic area based on our customers’ billing address as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States and Canada $ 21,377 $ 19,043 $ 60,600 $ 86,751 Asia 1,856 1,684 4,235 6,498 Europe 1,657 2,243 8,592 3,999 Other 1,808 705 5,044 1,313 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Customer Concentration Portions of the Company’s sales are concentrated among a limited number of customers. Significant customers are defined as customers representing greater than 10% of consolidated revenue. Revenue from two significant customers represented an aggregate of 41% and 35% of our consolidated revenue for the three and nine months ended June 30, 2023, respectively, and revenue from two significant customers represented an aggregate of 37% and 54% of our consolidated revenue for the three and nine months ended June 30, 2022, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Going Concern | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2022 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors, and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. We follow the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Intangibles-Goodwill and Other (“ASC 350”). ASC 350 requires the completion of a goodwill impairment test at least annually based on either an optional qualitative assessment or a quantitative analysis comparing the estimated fair value of a reporting unit to its carrying value as of the test date. In the current interim period ending June 30, 2023, we have elected to change our annual test date from December 31st of each year to July 1st of each year, unless there are indications requiring a more frequent impairment test. Any impairment charges would be based on the quantitative analysis. We performed our last test at December 31, 2022 and will perform our next test on July 1, 2023. Going Concern These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles assuming we will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about our ability to continue as a going concern exists. We have recently experienced significant losses from our operations and used a significant amount of cash, amounting to a net loss of $33.8 million and net cash outflows from operations of $26.4 million for the nine months ended June 30, 2023, and we expect to continue to incur losses and use cash in our operations as we continue to restructure our business. As a result of our recent cash outflows, we have taken actions to manage our liquidity and will need to continue to manage our liquidity as we continue to restructure our operations to focus on our Aerospace & Defense business. As of June 30, 2023, our cash and cash equivalents totaled $20.2 million and we had $10.6 million available under our Credit Agreement (as defined in Note 11 - Credit Agreement in the Notes to Condensed Consolidated Financial Statements). We are evaluating the sufficiency of our existing balances of cash and cash equivalents, cash flows from operations, and amounts expected to be available under our Credit Agreement, together with additional actions we could take (including those |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Such estimates include accounts receivable, inventories, goodwill, long-lived assets, product warranty liabilities, legal contingencies, income taxes, asset retirement obligations, and pension obligation, as well as the evaluation associated with the Company's assessment of its ability to continue as a going concern. We develop estimates based on historical experience and on various assumptions about the future that are believed to be reasonable based on the best information available to us. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Legal Costs | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below represents the final purchase price allocation to the assets acquired and liabilities assumed of EMCORE Chicago based on their estimated fair values as of the acquisition date based on management’s best estimates and assumptions: (in thousands) Amount Tangible assets acquired: Accounts receivable $ 4,977 Inventory 7,479 Prepaid expenses and other current assets 1,483 Property, plant, and equipment 14,442 Intangible assets acquired 13,470 Goodwill 15,867 Liabilities assumed: Accounts payable (1,699) Accrued expenses (485) Contract liabilities (637) Other long-term liabilities (8) Total purchase consideration $ 54,889 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma financial information presented for the three and nine months ended June 30, 2022 does not purport to be indicative of the results of operations that would have been achieved had the EMCORE Chicago acquisition been consummated on October 1, 2021, nor of the results which may occur in the future. The pro forma amounts are based upon available information and certain assumptions that the Company believes are reasonable. Three Months Ended June 30, 2022 Historical (in thousands, except per share data) EMCORE Corporation EMCORE Chicago Pro Forma Adjustments Pro Forma Combined Revenue $ 23,675 $ 7,698 $ — $ 31,373 Cost of revenue 19,777 5,827 171 (a) 25,775 Gross profit 3,898 1,871 (171) 5,598 Operating expense: Selling, general, and administrative 7,800 2,905 (1,026) (a)(b) 9,679 Research and development 4,513 1,443 (264) (a)(b) 5,692 Severance — — — — Gain on sale of assets (1,318) — — (1,318) Total operating expense 10,995 4,348 (1,290) 14,053 Operating loss (7,097) (2,477) 1,119 (8,455) Other expense: Interest income, net 9 — 318 (c) 327 Foreign exchange loss (185) — — (185) Other expense (349) 34 — (315) Total other expense (525) 34 318 (173) Loss before income tax expense (7,622) (2,443) 1,437 (8,628) Income tax expense (27) (13) (6) (d)(e) (46) Net loss (7,649) (2,456) 1,431 (8,674) Foreign exchange translation adjustment 69 — — 69 Comprehensive loss $ (7,580) $ (2,456) 1,431 $ (8,605) Per share data: Net loss per basic share $ (0.20) $ — $ (0.23) Weighted-average number of basic shares outstanding 37,425 — 37,425 Net loss per diluted share $ (0.20) $ — $ (0.23) Weighted-average number of diluted shares outstanding 37,425 — 37,425 Nine Months Ended June 30, 2022 Historical (in thousands, except per share data) EMCORE Corporation EMCORE Chicago Pro Forma Adjustments Pro Forma Combined Revenue $ 98,561 $ 23,094 $ — $ 121,655 Cost of revenue 69,849 17,482 512 (a) 87,843 Gross profit 28,712 5,612 (512) 33,812 Operating expense: Selling, general, and administrative 22,550 8,329 (3,077) (a)(b) 27,802 Research and development 13,675 4,330 (793) (a)(b) 17,212 Severance 1,318 — — 1,318 Gain on sale of assets (1,919) — — (1,919) Total operating expense 35,624 12,659 (3,870) 44,413 Operating loss (6,912) (7,047) 3,358 (10,601) Other expense: Interest expense, net (14) — 954 (c) 940 Foreign exchange loss (160) — — (160) Other expense (349) 102 — (247) Total other expense (523) 102 954 533 Loss before income tax expense (7,435) (6,945) 4,312 (10,068) Income tax expense (25) (38) (17) (d)(e) (80) Net loss (7,460) (6,983) 4,295 (10,148) Foreign exchange translation adjustment 91 — — 91 Comprehensive loss $ (7,369) $ (6,983) 4,295 $ (10,057) Per share data: Net loss per basic share $ (0.20) $ — $ (0.27) Weighted-average number of basic shares outstanding 37,197 — 37,197 Net loss per diluted share $ (0.20) $ — $ (0.27) Weighted-average number of diluted shares outstanding 37,197 — 37,197 (a) Reflects the impact to depreciation expense and amortization expense as a result of the change in fair value of property, plant, and equipment and intangible assets acquired. (b) Reflects the deduction of various sales, general, and administrative and research and development expenses allocated from corporate overhead to EMCORE Chicago during the periods presented that will not be incurred on an ongoing basis as a result of existing EMCORE management structures in place, which will provide the same support to EMCORE Chicago upon completion of a transition services agreement entered into between EMCORE and KVH in connection with the EMCORE Chicago acquisition. Amounts were estimated based on historical allocation included in the stand-alone financial statements of EMCORE Chicago. However, actual costs to be incurred associated with corporate support may vary under the EMCORE structure. (c) Reflects the impact of interest expense related to cash from borrowing facility for funding of the transaction. (d) Reflects the current tax expense due to additional income and deferred income tax expense related to deferred tax liability generated from annual tax amortization of indefinite-lived assets that were acquired for the periods presented. Such amounts were determined based on the effective tax rate of EMCORE rather than statutory tax rates as a result of a tax valuation allowance covering substantially all deferred tax assets and the existence of tax loss carryforwards present at both entities. (e) Reflects the deduction of the income tax expense related to the FIN 48 liability of EMCORE Chicago that is not assumed by EMCORE. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: (in thousands) June 30, 2023 September 30, 2022 Cash $ 13,936 $ 20,011 Cash equivalents 5,781 5,614 Restricted cash 495 520 Total cash, cash equivalents, and restricted cash $ 20,212 $ 26,145 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: (in thousands) June 30, 2023 September 30, 2022 Cash $ 13,936 $ 20,011 Cash equivalents 5,781 5,614 Restricted cash 495 520 Total cash, cash equivalents, and restricted cash $ 20,212 $ 26,145 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Components of Accounts Receivable, net | The components of accounts receivable, net consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Accounts receivable, gross $ 17,814 $ 18,410 Allowance for credit loss (363) (337) Accounts receivable, net $ 17,451 $ 18,073 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Raw materials $ 21,714 $ 22,927 Work in-process 9,005 9,587 Finished goods 5,114 4,521 Inventory $ 35,833 $ 37,035 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The components of property, plant, and equipment, net consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Land $ — $ 995 Building — 8,805 Equipment 47,711 42,330 Furniture and fixtures 1,571 1,394 Computer hardware and software 3,377 3,378 Leasehold improvements 9,794 7,180 Construction in progress 3,278 9,886 Property, plant, and equipment, gross $ 65,731 $ 73,968 Accumulated depreciation (41,343) (36,101) Property, plant, and equipment, net $ 24,388 $ 37,867 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Intangible Assets | The following table summarizes changes in intangible assets, net: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 14,790 $ 167 Changes from acquisition 1,470 14,740 Amortization (966) (117) Balance at end of period $ 15,294 $ 14,790 |
Schedule of Weighted Average Remaining Useful Lives by Definite-lived Intangible Asset | The weighted average remaining useful lives by definite-lived intangible asset category are as follows: June 30, 2023 (in thousands, except weighted average remaining life) Weighted Average Remaining Life (in years) Gross Carrying Amount Accumulated Amortization Net Book Value Technology 2.7 $ 11,001 $ (8,750) $ 2,251 Customer relationships 3.8 4,690 (527) 4,163 Definite-lived intangible assets total $ 15,691 $ (9,277) $ 6,414 September 30, 2022 (in thousands, except weighted average remaining life) Weighted Average Remaining Life (in years) Gross Carrying Amount Accumulated Amortization Net Book Value Technology 5.4 $ 10,991 $ (8,261) $ 2,730 Customer relationships 4.6 3,260 (50) 3,210 Definite-lived intangible assets total $ 14,251 $ (8,311) $ 5,940 |
Schedule of Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets recorded by the Company as of June 30, 2023 is as follows: (in thousands) Amount 2023 $ 309 2024 1,218 2025 1,192 2026 790 2027 766 Thereafter 2,139 Total amortization expense $ 6,414 |
Schedule of Goodwill | The following table summarizes changes in goodwill: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 17,894 $ 69 Adjustments to preliminary purchase price allocation 1,149 17,825 Balance at end of period $ 19,043 $ 17,894 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Pension Expense | The components of net periodic pension cost are as follows: (in thousands) Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Service cost $ 26 $ 78 Interest cost 93 279 Expected return on plan assets (84) (252) Net periodic pension cost $ 35 $ 105 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Compensation $ 5,796 $ 4,213 Warranty 1,478 1,504 Commissions 389 228 Consulting 277 241 Legal expenses and other professional fees 170 275 Auditor fees 183 186 Income and other taxes 56 — Severance and restructuring accruals 1,732 423 Litigation settlement 72 341 Other 622 713 Accrued expenses and other current liabilities $ 10,775 $ 8,124 |
Schedule of Accrued Severance and Restructuring Accruals | The components of accrued severance and restructuring accruals consisted of the following: (in thousands) June 30, 2023 September 30, 2022 Balance at beginning of period $ 423 $ — Expense 2,296 1,353 Payments (987) (930) Balance at end of period $ 1,732 $ 423 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Future Loan Repayments | Our future term loan repayments as of June 30, 2023 is as follows: (in thousands) Amount 2023 $ 212 2024 852 2025 852 2026 3,339 Total loan payments $ 5,255 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense - By Award Type | The following table sets forth stock-based compensation expense by award type: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 RSUs and RSAs $ 1,113 $ 692 $ 2,869 $ 1,795 PSUs and PRSAs 517 708 1,818 1,602 Outside director equity awards and fees in common stock 83 123 295 358 Total stock-based compensation expense $ 1,713 $ 1,523 $ 4,982 $ 3,755 |
Schedule of Stock-based Compensation Expense - By Expense Type | The following table sets forth stock-based compensation expense by expense type: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of revenue $ 436 $ 275 $ 1,154 $ 604 Selling, general, and administrative 980 1,001 3,006 2,537 Research and development 297 247 822 614 Total stock-based compensation expense $ 1,713 $ 1,523 $ 4,982 $ 3,755 |
Schedule of (Loss) Income Per Share | The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Numerator Net loss $ (9,857) $ (7,649) $ (33,778) $ (7,460) Denominator Weighted average number of shares outstanding - basic 53,926 37,425 45,546 37,197 Effect of dilutive securities Stock options — — — — PSUs, RSUs, and restricted stock — — — — Weighted average number of shares outstanding - diluted 53,926 37,425 45,546 37,197 Earnings per share - basic $ (0.18) $ (0.20) $ (0.74) $ (0.20) Earnings per share - diluted $ (0.18) $ (0.20) $ (0.74) $ (0.20) Weighted average antidilutive options, unvested RSUs and RSAs, and unvested PSUs excluded from the computation 3,823 3,163 2,533 1,315 |
Schedule of Common Stock Reserved for Future Issuances | Common stock reserved for future issuances as of June 30, 2023 was as follows: Amount Exercise of outstanding stock options 9,981 Unvested RSUs and RSAs 4,491,733 Unvested PSUs and PRSAs (at 100% maximum payout) 1,750,068 Issuance of stock-based awards under the Equity Plans 599,585 Purchases under the officer and director share purchase plan 88,741 Total reserved 6,940,108 |
Segment and Revenue Informati_2
Segment and Revenue Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | Information on reportable segments utilized by the chief operating decision maker is as follows: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Revenue Aerospace and Defense $ 27,001 $ 13,416 $ 73,879 $ 32,322 Broadband (303) 10,259 4,592 66,239 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Segment profit Aerospace and Defense gross profit $ 7,163 $ 1,551 $ 16,786 $ 4,468 Aerospace and Defense research and development expense 4,448 3,834 14,050 12,037 Aerospace and Defense gross profit less research and development expense $ 2,715 $ (2,283) $ 2,736 $ (7,569) Broadband gross profit $ (3,663) $ 2,347 $ (6,516) $ 24,244 Broadband research and development expense 723 679 2,269 1,638 Broadband gross profit less research and development expense $ (4,386) $ 1,668 $ (8,785) $ 22,606 Total gross profit less research and development expense $ (1,671) $ (615) $ (6,049) $ 15,037 |
Schedule of Revenue by Major Product Category | Revenue is classified by major product category as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Aerospace and Defense Inertial Navigation $ 26,718 $ 9,891 $ 70,947 $ 25,651 Defense Optoelectronics 283 3,525 2,932 6,671 Broadband CATV Optical Transmitters and Components 323 7,006 2,270 56,449 Data Center Chips (312) 1,353 885 3,534 Optical Sensing (314) 1,900 1,437 6,256 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 |
Schedule of Revenue by Geographic Region | Revenue is classified by timing of recognition as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Trade revenue (recognized at a point in time) $ 19,667 $ 18,207 $ 58,763 $ 91,056 Contract revenue (recognized over time) 7,031 5,468 19,708 7,505 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 Geographical Concentration Revenue is classified by geographic area based on our customers’ billing address as presented below: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States and Canada $ 21,377 $ 19,043 $ 60,600 $ 86,751 Asia 1,856 1,684 4,235 6,498 Europe 1,657 2,243 8,592 3,999 Other 1,808 705 5,044 1,313 Total revenue $ 26,698 $ 23,675 $ 78,471 $ 98,561 |
Description of Business (Detail
Description of Business (Details) | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Portfolio acquisition years | 4 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Net loss | $ (9,857) | $ (7,649) | $ (33,778) | $ (7,460) | ||
Net cash used in operating activities | (26,435) | 8,149 | ||||
Cash and cash equivalents | 20,212 | $ 75,129 | 20,212 | $ 75,129 | $ 26,145 | $ 71,682 |
Revolving Credit Facility | New ABL Credit Agreement | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Remaining borrowing capacity | $ 10,600 | $ 10,600 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Aug. 09, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Adjustments to preliminary purchase price allocation | $ 1,149 | $ 17,825 | ||
Transaction costs | $ 300 | 3,600 | ||
KVH Industries, Inc | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 55,000 | |||
Revenue | 9,300 | 25,900 | ||
Net income (loss) | 400 | 2,100 | ||
Adjustments to preliminary purchase price allocation | 3,300 | |||
Inventory reduction | 3,300 | |||
Intangible assets acquired | 13,470 | 13,470 | ||
KVH Industries, Inc | In Process Research and Development | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 5,900 | 5,900 | ||
KVH Industries, Inc | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 2,200 | 2,200 | ||
KVH Industries, Inc | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 3,000 | 3,000 | ||
KVH Industries, Inc | Technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 2,400 | 2,400 | ||
S and N and Emcore Chicago Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Amount of goodwill acquired | $ 15,900 | $ 15,900 | ||
EMCORE Chicago | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired (as percent) | 83.30% | 83.30% |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed of IN (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Tangible assets acquired: | |||
Goodwill | $ 19,043 | $ 17,894 | $ 69 |
KVH Industries, Inc | |||
Tangible assets acquired: | |||
Accounts receivable | 4,977 | ||
Inventory | 7,479 | ||
Prepaid expenses and other current assets | 1,483 | ||
Property, plant, and equipment | 14,442 | ||
Intangible assets acquired | 13,470 | ||
Goodwill | 15,867 | ||
Liabilities assumed: | |||
Accounts payable | (1,699) | ||
Accrued expenses | (485) | ||
Contract liabilities | (637) | ||
Other long-term liabilities | (8) | ||
Total purchase consideration | $ 54,889 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 26,698 | $ 23,675 | $ 78,471 | $ 98,561 |
Cost of revenue | 23,198 | 19,777 | 68,201 | 69,849 |
Gross profit | 3,500 | 3,898 | 10,270 | 28,712 |
Operating expense: | ||||
Selling, general, and administrative | 6,452 | 7,800 | 26,347 | 22,550 |
Research and development | 5,171 | 4,513 | 16,319 | 13,675 |
Severance | 1,838 | 0 | 2,296 | 1,318 |
Gain on sale of assets | 0 | (1,318) | (1,147) | (1,919) |
Total operating expense | 13,461 | 10,995 | 43,815 | 35,624 |
Operating loss | (9,961) | (7,097) | (33,545) | (6,912) |
Other income (expense): | ||||
Interest (expense) income, net | (219) | 9 | (682) | (14) |
Foreign exchange loss | 321 | (185) | 442 | (160) |
Other income (expense) | 31 | (349) | 184 | (349) |
Total other income (expense) | 133 | (525) | (56) | (523) |
Loss before income tax expense | (9,828) | (7,622) | (33,601) | (7,435) |
Income tax expense | (29) | (27) | (177) | (25) |
Net loss | (9,857) | (7,649) | (33,778) | (7,460) |
Foreign exchange translation adjustment | (134) | 69 | (79) | 91 |
Comprehensive loss | $ (9,991) | $ (7,580) | $ (33,857) | $ (7,369) |
Net loss per basic share (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Weighted-average number of basic shares outstanding (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
Net loss per diluted share (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Weighted-average number of diluted shares outstanding (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
Pro Forma | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 31,373 | $ 121,655 | ||
Cost of revenue | 25,775 | 87,843 | ||
Gross profit | 5,598 | 33,812 | ||
Operating expense: | ||||
Selling, general, and administrative | 9,679 | 27,802 | ||
Research and development | 5,692 | 17,212 | ||
Severance | 0 | 1,318 | ||
Gain on sale of assets | (1,318) | (1,919) | ||
Total operating expense | 14,053 | 44,413 | ||
Operating loss | (8,455) | (10,601) | ||
Other income (expense): | ||||
Interest (expense) income, net | 327 | 940 | ||
Foreign exchange loss | (185) | (160) | ||
Other income (expense) | (315) | (247) | ||
Total other income (expense) | (173) | 533 | ||
Loss before income tax expense | (8,628) | (10,068) | ||
Income tax expense | (46) | (80) | ||
Net loss | (8,674) | (10,148) | ||
Foreign exchange translation adjustment | 69 | 91 | ||
Comprehensive loss | $ (8,605) | $ (10,057) | ||
Net loss per basic share (in dollars per share) | $ (0.23) | $ (0.27) | ||
Weighted-average number of basic shares outstanding (in shares) | 37,425 | 37,197 | ||
Net loss per diluted share (in dollars per share) | $ (0.23) | $ (0.27) | ||
Weighted-average number of diluted shares outstanding (in shares) | 37,425 | 37,197 | ||
Pro Forma | Pro Forma Adjustments | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 0 | $ 0 | ||
Cost of revenue | 171 | 512 | ||
Gross profit | (171) | (512) | ||
Operating expense: | ||||
Selling, general, and administrative | (1,026) | (3,077) | ||
Research and development | (264) | (793) | ||
Severance | 0 | 0 | ||
Gain on sale of assets | 0 | 0 | ||
Total operating expense | (1,290) | (3,870) | ||
Operating loss | 1,119 | 3,358 | ||
Other income (expense): | ||||
Interest (expense) income, net | 318 | 954 | ||
Foreign exchange loss | 0 | 0 | ||
Other income (expense) | 0 | 0 | ||
Total other income (expense) | 318 | 954 | ||
Loss before income tax expense | 1,437 | 4,312 | ||
Income tax expense | (6) | (17) | ||
Net loss | 1,431 | 4,295 | ||
Foreign exchange translation adjustment | 0 | 0 | ||
Comprehensive loss | $ 1,431 | $ 4,295 | ||
Net loss per basic share (in dollars per share) | $ 0 | $ 0 | ||
Weighted-average number of basic shares outstanding (in shares) | 0 | 0 | ||
Net loss per diluted share (in dollars per share) | $ 0 | $ 0 | ||
Weighted-average number of diluted shares outstanding (in shares) | 0 | 0 | ||
Pro Forma | EMCORE Corporation (excluding EMCORE Chicago) | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 23,675 | $ 98,561 | ||
Cost of revenue | 19,777 | 69,849 | ||
Gross profit | 3,898 | 28,712 | ||
Operating expense: | ||||
Selling, general, and administrative | 7,800 | 22,550 | ||
Research and development | 4,513 | 13,675 | ||
Severance | 0 | 1,318 | ||
Gain on sale of assets | (1,318) | (1,919) | ||
Total operating expense | 10,995 | 35,624 | ||
Operating loss | (7,097) | (6,912) | ||
Other income (expense): | ||||
Interest (expense) income, net | 9 | (14) | ||
Foreign exchange loss | (185) | (160) | ||
Other income (expense) | (349) | (349) | ||
Total other income (expense) | (525) | (523) | ||
Loss before income tax expense | (7,622) | (7,435) | ||
Income tax expense | (27) | (25) | ||
Net loss | (7,649) | (7,460) | ||
Foreign exchange translation adjustment | 69 | 91 | ||
Comprehensive loss | $ (7,580) | $ (7,369) | ||
Net loss per basic share (in dollars per share) | $ (0.20) | $ (0.20) | ||
Weighted-average number of basic shares outstanding (in shares) | 37,425 | 37,197 | ||
Net loss per diluted share (in dollars per share) | $ (0.20) | $ (0.20) | ||
Weighted-average number of diluted shares outstanding (in shares) | 37,425 | 37,197 | ||
Pro Forma | EMCORE Chicago | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 7,698 | $ 23,094 | ||
Cost of revenue | 5,827 | 17,482 | ||
Gross profit | 1,871 | 5,612 | ||
Operating expense: | ||||
Selling, general, and administrative | 2,905 | 8,329 | ||
Research and development | 1,443 | 4,330 | ||
Severance | 0 | 0 | ||
Gain on sale of assets | 0 | 0 | ||
Total operating expense | 4,348 | 12,659 | ||
Operating loss | (2,477) | (7,047) | ||
Other income (expense): | ||||
Interest (expense) income, net | 0 | 0 | ||
Foreign exchange loss | 0 | 0 | ||
Other income (expense) | 34 | 102 | ||
Total other income (expense) | 34 | 102 | ||
Loss before income tax expense | (2,443) | (6,945) | ||
Income tax expense | (13) | (38) | ||
Net loss | (2,456) | (6,983) | ||
Foreign exchange translation adjustment | 0 | 0 | ||
Comprehensive loss | $ (2,456) | $ (6,983) |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 13,936 | $ 20,011 | ||
Cash equivalents | 5,781 | 5,614 | ||
Restricted cash | 495 | 520 | ||
Total cash, cash equivalents, and restricted cash | $ 20,212 | $ 26,145 | $ 75,129 | $ 71,682 |
Accounts Receivable, net - Sche
Accounts Receivable, net - Schedule of Components of Accounts Receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 17,814 | $ 18,410 |
Allowance for credit loss | (363) | (337) |
Accounts receivable, net | $ 17,451 | $ 18,073 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 21,714 | $ 22,927 |
Work in-process | 9,005 | 9,587 |
Finished goods | 5,114 | 4,521 |
Inventory | $ 35,833 | $ 37,035 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 65,731 | $ 73,968 |
Accumulated depreciation | (41,343) | (36,101) |
Property, plant, and equipment, net | 24,388 | 37,867 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 0 | 995 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 0 | 8,805 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 47,711 | 42,330 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,571 | 1,394 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 3,377 | 3,378 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 9,794 | 7,180 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 3,278 | $ 9,886 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation expense | $ 2,400 | $ 1,200 | $ 5,400 | $ 3,200 | ||
Gain on sale of assets | 0 | $ 1,318 | 1,147 | $ 1,919 | ||
Asset impairment charges | $ 3,000 | |||||
Broadband | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Restructuring, accelerated depreciation | 800 | $ 800 | ||||
United States | Long-lived Assets | Geographic Concentration Risk | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Concentration risk, percentage | 95.40% | 95.40% | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Tinley Park Facility | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment held for sale | $ 10,300 | $ 10,300 | ||||
Gain on sale of assets | $ 1,200 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Sep. 30, 2022 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life (in years) | 7 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life (in years) | 8 years | |
Technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life (in years) | 2 years | |
Technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life (in years) | 8 years | |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 6.7 | $ 6.7 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 2.2 | $ 2.2 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Roll Forward] | ||
Beginning balance, Intangible asset | $ 14,790 | $ 167 |
Changes from acquisition | 1,470 | 14,740 |
Amortization | (966) | (117) |
Ending balance, Intangible asset | $ 15,294 | $ 14,790 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Weighted Average Remaining Useful Lives by Definite-lived Intangible Asset (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 15,691 | $ 14,251 |
Accumulated Amortization | (9,277) | (8,311) |
Net Book Value | $ 6,414 | $ 5,940 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 2 years 8 months 12 days | 5 years 4 months 24 days |
Gross Carrying Amount | $ 11,001 | $ 10,991 |
Accumulated Amortization | (8,750) | (8,261) |
Net Book Value | $ 2,251 | $ 2,730 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 3 years 9 months 18 days | 4 years 7 months 6 days |
Gross Carrying Amount | $ 4,690 | $ 3,260 |
Accumulated Amortization | (527) | (50) |
Net Book Value | $ 4,163 | $ 3,210 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 309 | |
2024 | 1,218 | |
2025 | 1,192 | |
2026 | 790 | |
2027 | 766 | |
Thereafter | 2,139 | |
Net Book Value | $ 6,414 | $ 5,940 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance, Goodwill | $ 17,894 | $ 69 |
Adjustments to preliminary purchase price allocation | 1,149 | 17,825 |
Ending balance, Goodwill | $ 19,043 | $ 17,894 |
Benefit Plans - Schedule of Com
Benefit Plans - Schedule of Components of Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 26 | $ 78 |
Interest cost | 93 | 279 |
Expected return on plan assets | (84) | (252) |
Net periodic pension cost | $ 35 | $ 105 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Matching contribution | $ 0.4 | $ 0.2 | $ 1 | $ 0.8 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Payables and Accruals [Abstract] | |||
Compensation | $ 5,796 | $ 4,213 | |
Warranty | 1,478 | 1,504 | |
Commissions | 389 | 228 | |
Consulting | 277 | 241 | |
Legal expenses and other professional fees | 170 | 275 | |
Auditor fees | 183 | 186 | |
Income and other taxes | 56 | 0 | |
Severance and restructuring accruals | 1,732 | 423 | $ 0 |
Litigation settlement | 72 | 341 | |
Other | 622 | 713 | |
Accrued expenses and other current liabilities | $ 10,775 | $ 8,124 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Severance and Restructuring Accruals (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 423 | $ 0 |
Expense | 2,296 | 1,353 |
Payments | (987) | (930) |
Ending balance | $ 1,732 | $ 423 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance expenses | $ 2,296 | $ 1,353 | ||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance expenses | $ 1,800 | $ 1,300 |
Credit Agreement - Narrative (D
Credit Agreement - Narrative (Details) | Aug. 09, 2022 USD ($) creditFacility | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) |
Line of Credit Facility [Line Items] | |||
Consecutive days threshold | 60 days | ||
Loan payable - non-current | $ 4,403,000 | $ 5,042,000 | |
New ABL Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Excess availability term | $ 5,000,000 | ||
Excess availability term percentage | 0.15 | ||
Fixed charge coverage ratio (not less than) | 1.10 | ||
Secured Debt | New ABL Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Principal amount | $ 6,000,000 | ||
Debt instrument, closing fee percentage | 0.0150 | ||
Secured Debt | New ABL Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 5.50% | ||
Revolving Credit Facility | New ABL Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | ||
Debt instrument, closing fee percentage | 0.010 | ||
Unused capacity fee percentage | 0.50% | ||
Loan payable - non-current | 6,500,000 | 5,900,000 | |
Long-term line of credit | 5,300,000 | $ 9,600,000 | |
Remaining borrowing capacity | $ 10,600,000 | ||
Revolving Credit Facility | New ABL Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
Revolving Credit Facility | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Number of credit facilities | creditFacility | 2 |
Credit Agreements - Schedule of
Credit Agreements - Schedule of Future Loan Repayments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 212 |
2024 | 852 |
2025 | 852 |
2026 | 3,339 |
Total loan payments | $ 5,255 |
Income and Other Taxes - Narrat
Income and Other Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 29,000 | $ 27,000 | $ 177,000 | $ 25,000 | |
Effective tax rate on continuing operations | 0.30% | 0.40% | 0.50% | 0.30% | |
Interest and penalties accrued as tax liabilities | $ 0 | $ 0 | $ 0 | ||
Uncertain tax reserve, period increase (decrease) | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | |||
Apr. 24, 2023 USD ($) businessDay | Apr. 30, 2021 USD ($) | Jun. 30, 2023 USD ($) | Feb. 10, 2020 | |
Loss Contingencies [Line Items] | ||||
Inventory obligation | $ 400 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Inventory obligation | 0 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Inventory obligation | $ 3,200 | |||
Resilience Litigation | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 500 | |||
Resilience Litigation | Resilience Capital | ||||
Loss Contingencies [Line Items] | ||||
Damages sought value (not less than) | $ 1,565 | |||
Resilience Litigation | Concord Property | ||||
Loss Contingencies [Line Items] | ||||
Lease length in years | 15 years | |||
Beazley Settlement Agreement | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, amount awarded from other party | $ 1,150 | |||
Litigation settlement, business days, required payment | businessDay | 15 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Feb. 17, 2023 USD ($) $ / shares shares | Dec. 31, 2022 shares | Jun. 30, 2023 plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity incentive compensation plans maintained by the company | plan | 4 | ||
Common Stock | IPO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sale of stock, number of shares issued in transaction (in shares) | 15,454,546 | ||
Sale of stock, price per share (USD per share) | $ / shares | $ 1.10 | ||
Gross proceeds from issuance, initial public offering | $ | $ 15.4 | ||
2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional number of shares authorized for the plan (in shares) | 1,549,000 |
Equity - Schedule of Stock-base
Equity - Schedule of Stock-based Compensation Expense - by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,713 | $ 1,523 | $ 4,982 | $ 3,755 |
RSUs and RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,113 | 692 | 2,869 | 1,795 |
PSUs and PRSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 517 | 708 | 1,818 | 1,602 |
Outside director equity awards and fees in common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 83 | $ 123 | $ 295 | $ 358 |
Equity - Schedule of Stock-ba_2
Equity - Schedule of Stock-based Compensation Expense - by Expense Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,713 | $ 1,523 | $ 4,982 | $ 3,755 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 436 | 275 | 1,154 | 604 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 980 | 1,001 | 3,006 | 2,537 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 297 | $ 247 | $ 822 | $ 614 |
Equity - Schedule of (Loss) Inc
Equity - Schedule of (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator | ||||
Net loss | $ (9,857) | $ (7,649) | $ (33,778) | $ (7,460) |
Denominator | ||||
Weighted average number of shares outstanding - basic (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
Effect of dilutive securities | ||||
Weighted average number of shares outstanding - diluted (in shares) | 53,926 | 37,425 | 45,546 | 37,197 |
Earnings per share - basic (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Earnings per share - diluted (in dollars per share) | $ (0.18) | $ (0.20) | $ (0.74) | $ (0.20) |
Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation (in shares) | 3,823 | 3,163 | 2,533 | 1,315 |
Stock options | ||||
Effect of dilutive securities | ||||
Dilutive options outstanding, unvested stock units and unvested stock awards (in shares) | 0 | 0 | 0 | 0 |
PSUs, RSUs, and restricted stock | ||||
Effect of dilutive securities | ||||
Dilutive options outstanding, unvested stock units and unvested stock awards (in shares) | 0 | 0 | 0 | 0 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Reserved for Future Issuances (Details) | Jun. 30, 2023 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 6,940,108 |
Exercise of outstanding stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 9,981 |
RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 4,491,733 |
PSUs and PRSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,750,068 |
Unvested award potential, percentage | 100% |
Issuance of stock-based awards under the Equity Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 599,585 |
Purchases under the officer and director share purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 88,741 |
Segment and Revenue Informati_3
Segment and Revenue Information - Schedule of Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 26,698 | $ 23,675 | $ 78,471 | $ 98,561 |
Gross profit | 3,500 | 3,898 | 10,270 | 28,712 |
R&D expense | 5,171 | 4,513 | 16,319 | 13,675 |
Operating loss | (9,961) | (7,097) | (33,545) | (6,912) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 26,698 | 23,675 | 78,471 | 98,561 |
Operating loss | (1,671) | (615) | (6,049) | 15,037 |
Operating segments | Aerospace And Defense | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 27,001 | 13,416 | 73,879 | 32,322 |
Gross profit | 7,163 | 1,551 | 16,786 | 4,468 |
R&D expense | 4,448 | 3,834 | 14,050 | 12,037 |
Operating loss | 2,715 | (2,283) | 2,736 | (7,569) |
Operating segments | Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (303) | 10,259 | 4,592 | 66,239 |
Gross profit | (3,663) | 2,347 | (6,516) | 24,244 |
R&D expense | 723 | 679 | 2,269 | 1,638 |
Operating loss | $ (4,386) | $ 1,668 | $ (8,785) | $ 22,606 |
Segment and Revenue Informati_4
Segment and Revenue Information - Schedule of Revenue by Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 26,698 | $ 23,675 | $ 78,471 | $ 98,561 |
Inertial Navigation | Aerospace And Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26,718 | 9,891 | 70,947 | 25,651 |
Defense Optoelectronics | Aerospace And Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 283 | 3,525 | 2,932 | 6,671 |
CATV Optical Transmitters and Components | Broadband | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 323 | 7,006 | 2,270 | 56,449 |
Data Center Chips | Broadband | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (312) | 1,353 | 885 | 3,534 |
Optical Sensing | Broadband | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ (314) | $ 1,900 | $ 1,437 | $ 6,256 |
Segment and Revenue Informati_5
Segment and Revenue Information - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 26,698 | $ 23,675 | $ 78,471 | $ 98,561 |
United States and Canada | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 21,377 | 19,043 | 60,600 | 86,751 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 1,856 | 1,684 | 4,235 | 6,498 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 1,657 | 2,243 | 8,592 | 3,999 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 1,808 | 705 | 5,044 | 1,313 |
Trade revenue (recognized at a point in time) | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 19,667 | 18,207 | 58,763 | 91,056 |
Contract revenue (recognized over time) | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 7,031 | $ 5,468 | $ 19,708 | $ 7,505 |
Segment and Revenue Informati_6
Segment and Revenue Information - Narrative (Details) - Sales Revenue, Segment - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
One Significant Customer | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Concentration risk, percentage | 41% | |||
Two Significant Customer | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Concentration risk, percentage | 37% | 35% | 54% |