• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

EMCORE Corporation to Acquire Intel's Enterprise and Storage Optical Assets

malware

New Member
Joined
Nov 7, 2004
Messages
5,422 (1.13/day)
Likes
954
Location
Bulgaria
Processor Intel Core 2 Quad Q6600 G0 VID: 1.2125
Motherboard GIGABYTE GA-P35-DS3P rev.2.0
Cooling Thermalright Ultra-120 eXtreme + Noctua NF-S12 Fan
Memory 4x1 GB PQI DDR2 PC2-6400
Video Card(s) Colorful iGame Radeon HD 4890 1 GB GDDR5
Storage 2x 500 GB Seagate Barracuda 7200.11 32 MB RAID0
Display(s) BenQ G2400W 24-inch WideScreen LCD
Case Cooler Master COSMOS RC-1000 (sold), Cooler Master HAF-932 (delivered)
Audio Device(s) Creative X-Fi XtremeMusic + Logitech Z-5500 Digital THX
Power Supply Chieftec CFT-1000G-DF 1kW
Software Laptop: Lenovo 3000 N200 C2DT2310/3GB/120GB/GF7300/15.4"/Razer
#1
EMCORE Corporation announced a definitive agreement with Intel Corporation to acquire the enterprise and storage assets of Intel's Optical Platform Division as well as the Intel Connects Cables business. EMCORE will issue 3.7 million shares of restricted stock for the acquisition, with certain adjustments based on EMCORE's stock price twelve months after the closing of the transaction. The assets include intellectual property, inventory, fixed assets and technology relating to optical transceivers for enterprise and storage customers, as well as optical cable interconnects for high-performance computing clusters. The transaction is expected to close in the second quarter of this year.


The acquisition further enhances EMCORE's presence in the optical communications market segments, especially in the areas of 10 Gigabit Ethernet and storage area network transceivers. This allows EMCORE to provide a more complete product offering to a broad range of customers.

"Following the successful acquisition of the telecom-related assets of Intel's Optical Platform Division, this second acquisition from Intel enables EMCORE's Fiber Optics to be a significant supplier for both telecom and datacom products," said Reuben F. Richards, Executive Chairman, EMCORE. "This acquisition will provide additional manufacturing efficiencies through economies of scale and vertical integration, benefiting our enterprise, storage, telecom, cable and high-performance computing customers. EMCORE projects this asset will add $45 million in revenue for the next 12 months, increase gross margin from 23 to 29 percent and be accretive to earnings. The Intel Connects Cables business provides an innovative solution for high-performance computing cluster interconnect applications, using embedded parallel optical transceivers with a multi-mode fiber ribbon. EMCORE expects this business to have gross margins exceeding 50% and to be the fastest growing segment of the acquired assets."

"Customers are driving consolidation and vertical integration in the optical communications market segments," said Doug Davis, Vice President, Intel Digital Enterprise Group, and General Manager, Embedded and Communications Group. "We will work together to complete a smooth transition of these businesses, building upon the experience in the telecom optical components acquisition."

The sale of these optical-related assets will enable Intel to focus its investments on core communications and embedded market segments in line with its platform strategies. Intel will continue its efforts on the universal serial bus 3.0 specification, which is slated to support optical, and silicon photonics research and development.

Source: Intel
 
Joined
Feb 26, 2007
Messages
850 (0.21/day)
Likes
23
Location
USA
#2
Doesn't Intel own something like 44% of this company already? (I thought the breakdown was 44/48/8 between the three invested companies)
 

WarEagleAU

Bird of Prey
Joined
Jul 9, 2006
Messages
10,809 (2.57/day)
Likes
529
Location
Gurley, AL
System Name Boddha Getta Boddha Getta Bah!
Processor AMD FX 6100 @ 4.432Ghz @1.382
Motherboard ASUS M5A99X EVO AMD 990X AMD SB950
Cooling Custom Water. EK 240MM Kit, Supreme HSF - Runs 35C
Memory 2 x 4GB Corsair Vengeance White LP @ 1.35V
Video Card(s) XFX Radeon HD 6870 980/1100
Storage WD Caviar Black 1.0TB, WD Caviar Green 1.0TB, WD 160GB
Display(s) Asus VH222/S 22: (21.5" Viewable) 1920x1080p HDMI LCD Monitor
Case NZXT White Switch 810
Audio Device(s) Onboard Realtek 5.1
Power Supply NZXT Hale 90 Gold Cert 750W Modular PSU
Software Windows 8.1 Profession 64 Bit
#3
I dont know, but if they do, they are selling their share. Ive never heard of Emcore though..
 
Joined
Feb 26, 2007
Messages
850 (0.21/day)
Likes
23
Location
USA
#4
I dont know, but if they do, they are selling their share. Ive never heard of Emcore though..
I thought it was talked about recently Intel and two other companies merged a portion of their companies for better research and market share. Its a brand new company the three put together. With this increase with shares, I would have thought this put Intel over 50% of ownership in the company ?!?
I could be wrong and have everything mixed up but thats what I thought.