EMCORE Corporation (Nasdaq: EMKR), the world’s largest independent provider of inertial navigation solutions to the aerospace and defense industry, today announced a restructuring program that includes the shutdown of the Broadband business segment and the discontinuance of its defense optoelectronics product line.
“This restructuring represents the final phase of EMCORE’s transition to Aerospace and Defense. After months of discussions with several interested parties to divest non-strategic product lines, we will now shut down the Broadband business segment (cable TV, wireless, sensing, and chips) and discontinue our defense optoelectronics product lines. We will continue to build QMEMS and Lithium Niobate chips, but will close down our Indium Phosphide (InP) wafer fabrication facility in Alhambra,” said Jeff Rittichier, President and Chief Executive Officer of EMCORE. “These actions will eliminate product lines that are no longer part of our future and enable EMCORE to focus entirely on scaling our inertial navigation business.”
The restructuring program is designed to reduce annual costs and expenses by approximately $12 million. It includes a reduction in the workforce of approximately 100 employees primarily in Alhambra and China, as well as consolidating facility space by downsizing the space being occupied at the Alhambra campus from five to two buildings, relocating Concord personnel to the operations area from the adjacent office building, and closing the manufacturing support and engineering center in China. The Company expects restructuring actions to be substantially completed by September 30, 2023. A restructuring charge covering severance, facility consolidation, and other related items is expected to be finalized and recorded in the quarter ended June 30, 2023 (fiscal 3Q23).
“To employees who are affected directly, we express our sincere gratitude for your service to EMCORE. We appreciate your efforts and dedication, and wish you the very best in your future endeavors,” added Rittichier.
