Press Releases
NeoPhotonics Completes Acquisition of EMCORE’s Narrow Linewidth Tunable Laser Product Line
Expands NeoPhotonics Portfolio of Optical Components for High Speed
100G and 400G Coherent Transmission Systems
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 5, 2015--
NeoPhotonics Corporation (NYSE:NPTN), today announced that it has
completed the acquisition of the tunable laser product lines of EMCORE
Corporation (NASDAQ: EMKR) for approximately $17.5 million.
Consideration for the transaction consists of $1.5 million in cash and a
promissory note of approximately $16.0 million, which is subject to
certain adjustments for inventory, net accounts receivable and
pre-closing revenues, and will mature in two years. The note is
subordinated to the Company’s existing bank debt in the U.S. and is
secured by certain assets acquired in the transaction.
“EMCORE’s narrow linewidth tunable laser product line is highly
complementary to our broad existing portfolio of optical components for
100 Gigabits per second coherent transport systems, and this acquisition
significantly expands our footprint in this rapidly growing segment,”
said Tim Jenks, Chairman and CEO of NeoPhotonics. “EMCORE’s External
Cavity Tunable Laser has the narrowest linewidth in the industry, which
we believe will become increasingly important for advanced modulation
schemes at 400G and beyond. Combining this business into NeoPhotonics
will allow us to provide customers with a full product suite that serves
the full coherent market,” continued Mr. Jenks.
The acquisition is expected to be accretive to NeoPhotonics on a
non-GAAP earnings per share basis by the second quarter of 2015.
NeoPhotonics management will discuss the impact of this acquisition in
the context of their outlook for the first quarter ending March 31, 2015
when it reports fourth quarter and full year 2014 results.
About NeoPhotonics
NeoPhotonics is a leading designer and manufacturer of hybrid photonic
integrated optoelectronic modules and subsystems for
bandwidth-intensive, high-speed communications networks. The Company’s
products enable cost-effective, high-speed data transmission and
efficient allocation of bandwidth over communications networks.
NeoPhotonics maintains headquarters in San Jose, California and ISO
9001:2000 certified engineering and manufacturing facilities in Silicon
Valley (USA), Japan and China. For additional information visit www.neophotonics.com.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
This press release includes statements regarding the completed
acquisition, including statements regarding the benefits of the addition
of the EMCORE product line and the expected accretive impact on
Neophotonics' second quarter 2015 non-GAAP earnings per share, that
qualify as forward-looking statements under the Private Securities
Litigation Reform Act of 1995. Readers are cautioned that these
forward-looking statements involve risks and uncertainties and are only
predictions based on NeoPhotonics’ current expectations, estimates and
projections about their respective industry and business, management’s
beliefs, and certain assumptions made by NeoPhotonics, all of which are
subject to change and which may differ materially from actual future
events or results. The actual results of NeoPhotonics and the timing of
events could differ materially from those anticipated in such
forward-looking statements as a result of these risks, uncertainties and
assumptions.
The risks and uncertainties that could cause the results of NeoPhotonics
to differ materially from those expressed or implied by such
forward-looking statements include but are not limited to: potential
effects of disruption from the transaction making it more difficult to
maintain relationships with employees, customers, suppliers, and other
business partners for both NeoPhotonics and the acquired EMCORE
products; transaction costs; actual or contingent liabilities or
contractual, intellectual property or employment issues that arise as a
result of the transaction; the inability to predict the future success
or market acceptance of the acquired EMCORE products while a part of
NeoPhotonics, or the timing of such acceptance; the benefits of
combining the acquired products and technologies with those of
NeoPhotonics may not be realized; the highly competitive and rapidly
evolving markets in which both NeoPhotonics and the acquired EMCORE
products compete; the demand for the acquired EMCORE products may be
volatile or lower than expected and production capacity related to these
products may be underutilized; demand for the acquired EMCORE products
could be lower than NeoPhotonics’ expectations due to general conditions
in the telecommunications equipment industry or other factors; and other
business effects, including the effects of economic or political
conditions outside of the control of NeoPhotonics.
For further discussion of the risks and uncertainties relating to
NeoPhotonics’ business, please refer to the documents NeoPhotonics’
files with the SEC from time to time, including NeoPhotonics’ Annual
Report on Form 10-K for the year ended December 31, 2013 and
NeoPhotonics’ Quarterly Reports on Form 10-Q for the three months ended
March 31, 2014, six months ended June 30, 2014 and nine months ended
September 30, 2014. All forward-looking statements are made as of the
date of this press release, and NeoPhotonics disclaims any duty to
update such statements.
© 2015 NeoPhotonics Corporation. All rights reserved. NeoPhotonics and
the red dot logo are trademarks of NeoPhotonics Corporation. All other
marks are the property of their respective owners.

Source: NeoPhotonics Corporation
NeoPhotonics Corporation
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Chief
Financial Officer
ray.wallin@neophotonics.com
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