Emcore enters non-binding LOI to sell non-strategic product lines

EMCORE Corporation announced the execution of a nonbinding letter of intent for the sale of the Defense Optoelectronics product line and all Broadband segment product lines except chips to Photonics Foundries, Inc. Given this anticipated sale, EMCORE now expects last-time buy revenue from business lines included in our April 21, 2023 restructuring announcement to aggregate approximately $6 million, the majority of which relates to the Company’s chip business, and includes $1.3 million that was recognized as revenue for the three months ended June 30, 2023. It is contemplated that the portion of the remaining projected last-time buys that were previously announced by EMCORE will be transferred to Photonics Foundries if the proposed transaction is completed. The anticipated transaction does not include EMCORE’s chip business or wafer fab assets. Notwithstanding the foregoing, there can be no assurance that a definitive agreement will be entered into by the parties or that a transaction will be consummated by the parties on the terms described above or at all.