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Emcore cuts loss despite manufacturing delays

ALBUQUERQUE, N.M.,

    Emcore Corp., a maker of components for communications gear and solar panels, nearly halved its loss for the latest quarter despitetroubles in the solar-panel business.

    The company lost $7.7 million, or 10 cents per share, for thefiscal third quarter, which ended June 30. That compares to a lossof $14.6 million, or 29 cents per share, in the same quarter lastyear, the company said late Thursday.

    Revenue rose 70 percent to $75.5 million.

    Excluding nonrecurring charges and stock-based compensationexpense, the loss was 4 cents per share. Analysts polled by ThomsonFinancial, on average, had expected a loss of 3 cents per share onthat basis, and revenue of $78.5 million.

    Revenue from photovoltaics used in solar panels rose 30 percent,but the gross margin was negative 3 percent. The installation of anew manufacturing line was delayed, and the production volumecouldn't absorb the added overhead costs.

    The Albuquerque-based company expects revenue from solar panels forsatellites to rebound in the next few quarter.

    The company's fiber-optics and legacy datacom units did better,with revenues up 94 percent and 144 percent, respectively.

    Emcore's order backlog declined to $109 million at the end of thequarter from $158 million at its start, partly because of thepending acquisition of a large solar-panel customer meant it wasunable to commit to further purchases.

    Shares of Emcore fell 45 cents to $4.01 in premarket tradingFriday.

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