EXHIBIT 99.1
EMCORE Corporation
PRO FORMA UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2003
(in thousands)
ACTUAL DISPOSITION PRO FORMA
------ ----------- ---------
Cash $ 28,439 $ 62,043 $ 90,482
Accounts receivable, net 25,595 (10,345) 15,250
Accounts receivable, related party 325 -- 325
Inventory, net 25,106 (11,887) 13,219
Other current assets 1,954 (168) 1,786
Property, plant and equipment, net 95,809 (20,831) 74,978
Goodwill 30,366 -- 30,366
Intangible assets, net 5,401 (833) 4,568
Investment in equity of associated companies 9,214 -- 9,214
Other assets, net 10,230 (27) 10,203
- ------------------------------------------------------------------ --------------- --------------
Total assets $ 232,439 $ 17,952 $ 250,391
================================================================== =============== ==============
Accounts payable $ 11,968 $ (2,279) $ 9,689
Accrued expenses 13,269 23 13,292
Customer deposits 587 (587) --
Capital lease obligations, current 52 -- 52
Convertible subordinated debt 161,750 -- 161,750
Capital lease obligations, net of current 41 -- 41
Preferred stock, $0.0001 par, 5,882 shares
authorized, no shares outstanding -- -- --
Common stock, no par value, 100,000 shares
authorized, 37,327 shares issued and 37,307
outstanding at September 30, 2003 335,266 -- 335,266
Accumulated deficit (289,438) 20,795 (268,643)
Accumulated other comprehensive loss (90) -- (90)
Shareholders' notes receivable (34) -- (34)
Treasury stock, at cost; 20 shares (932) -- (932)
- ------------------------------------------------------------------ --------------- --------------
Total liabilities and equity $ 232,439 $ 17,952 $ 250,391
================================================================== =============== ==============
EMCORE CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except loss per share)
(unaudited)
Year Ended September 30, 2003
------------------------------------------------------
ACTUAL DISPOSITION PRO FORMA
------------------------------------------------------
Revenues:
Systems-related $ 52,681 $ (52,681) $ --
Materials-related 60,425 (2,672) 57,753
- --------------------------------------------------------------------------------------------------------
Total revenues 113,106 (55,353) 57,753
Cost of revenues:
Systems-related 36,545 (36,545) --
Materials-related 62,044 (2,569) 59,475
- --------------------------------------------------------------------------------------------------------
Total cost of revenues 98,589 (39,114) 59,475
- --------------------------------------------------------------------------------------------------------
Gross profit (loss) 14,517 (16,239) (1,722)
Operating expenses:
Selling, general and administrative 28,990 (6,935) 22,055
Research and development 22,181 (5,312) 16,869
Gain from debt extinguishment (6,614) -- (6,614)
- --------------------------------------------------------------------------------------------------------
Total operating expenses 44,557 (12,247) 32,310
- --------------------------------------------------------------------------------------------------------
Operating loss (30,040) (3,992) (34,032)
Other expenses:
Interest expense, net 7,257 22 7,279
Equity in net loss of unconsolidated affiliate 1,228 -- 1,228
- --------------------------------------------------------------------------------------------------------
Total other expenses 8,485 22 8,507
- --------------------------------------------------------------------------------------------------------
Net loss $ (38,525) $ (4,014) $ (42,539)
========================================================================================================
PER SHARE DATA:
Weighted average basic and diluted shares
outstanding used in per share 36,999 36,999 36,999
calculations
- --------------------------------------------------------------------------------------------------------
Net loss per basic and diluted $ (1.04) $ (0.11) $ (1.15)
share
=======================================================================================================
EMCORE Corporation
Notes to Unaudited Condensed Consolidated Pro Forma Financial Statements
(Dollars in thousands)
1. Basis of Pro Forma Presentation
The preceding unaudited pro forma condensed consolidated financial information
presented for the balance sheet as of September 30, 2003 and for the statement
of operations for the year then ended, is based upon the Company's historical
results of operations, adjusted to reflect the pro forma effect as if the sale
of certain assets of the Company comprising its TurboDisc business had occurred
on October 1, 2002. The historical consolidated financial information presented
herein should be read in conjunction with the audited consolidated financial
statements and notes thereto appearing in the Company's annual report on Form
10-K for the year ended September 30, 2003.
These unaudited pro forma condensed consolidated financial statements are for
information purposes only and are not necessarily indicative of the results of
future operations or the actual results that would have been achieved had the
sale been consummated during the periods indicated. The pro forma adjustments
are based on the best information available to date, which may change as
additional information is obtained.
2. Pro Forma Assumptions and Adjustments
a. Adjustments to eliminate the assets sold to and liabilities assumed by
Veeco and to recognize the gain on sale of $20.8 million, ignoring tax
consideration, was determined as follows:
Cash proceeds $62,043
Net assets sold 38,178
Transaction costs 3,070
-------
Gain on sale $20,795
=======
b. The business unit contribution of the Turbodisc division for the year ended
September 30, 2003 and 2002 has been excluded from the respective pro forma
statements of operations. Business unit contribution represents earnings
before interest and taxes and before the allocation of corporate operating
expenses. The corporate operating expenses that were allocated to the
Turbodisc division but have not been removed from the pro forma statements
of operations amounted to approximately $3.0 million and $5.7 million for
the year ended September 30, 2003 and September 30, 2002, respectively.
This corporate amount would most likely have been lower without the
TurboDisc division in these periods, but these amounts could not be easily
determined.