The semiconductor company said it will sell its Space Photovoltaics business to private equity firm Veritas Capital for $150 million in cash and the assumption of certain liabilities. The sale of the business included the rights to all the buildings Emcor owns in Albuquerque, NM and the approximately 275 employees who work in the city.
Connected to the sale of the Space Photovoltaics Emcore announced that president and CEO Dr. Hong Hou will step down from his position. Hou will continue his position until the company is able to find a successor.
TheStreet Ratings team rates EMCORE CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMCORE CORP (EMKR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."