EMCORE Corporation (NASDAQ:EMKR)
EMCORE Corporation (EMKR), a leading optical chip company yesterday announced that they will be distributing a special $1.50 per share dividend to its shareholders. Shares will be payable on July 29, 2016 to shareholders of record as of July 18, 2016.
EMCORE Corporation CEO’s Comments
“The return of cash to shareholders will strongly improve the Return on Assets of the business by reducing our overall capitalization, while maintaining flexibility to invest in new market opportunities to accelerate earnings growth,” says Jeffrey Rittichier, President and CEO. “As previously stated, we’re encouraged by the performance of our CATV and Fiber Optic Gyro businesses and see strong growth opportunities in these and other areas to continue improving our financial performance,” added Rittichier.
“During my first year at EMCORE, we grew revenues 47% and improved gross margins 13 points from FY14 to FY15, positioning the company for profitable growth. Building on this progress, we returned $45M to shareholders in June 2015 and began executing a strategic re-alignment of the manufacturing operations to drive margins higher. With the core operations of the business on improved footing, in December 2015 the Board and management began a comprehensive strategic review to strike the right balance between returning assets to shareholders and investing in growth opportunities. During this review period, we actively worked to eliminate risks to our balance sheet posed by the Sumitomo arbitration and other lingering liabilities. Given the recent successful outcome of the Sumitomo arbitration and the completion of our strategic review, we are pleased to announce this return of capital to our shareholders,” continued Rittichier. Globe Newswire
EMKR Technical Analysis
EMKR opened trading yesterday at $5.73 which was down from the previous days trading of $5.77. EMKR closed trading yesterday at $5.70 and spiked up after market to $6.28, equivalent to a 10% increase from the closing price. Taking a look at the daily chart we can see the last time EMKR traded above these levels was on December 29th when it traded at $6.36. Taking a closer look at the daily chart we can see that EMKR has been on an overall upward trend dating back to May 19th when it traded at $5.22. EMKR has a float of 24.02 million shares and traded below the normal daily trading volume on Wednesday. For trading purposes, I would like to see EMKR open trading on Thursday above $6.08 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.18 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
EMCORE Corporation designs and manufactures Indium Phosphide optical chips, components, subsystems, and systems for the broadband and specialty fiber optics market. The company offers optical components, subsystems, and systems for cable television and fiber-to-the-premise networks, as well as products for satellite communications, video transport, and specialty photonics technologies for defense and homeland security applications. It sells its products through its direct sales force, application engineers, third party sales representatives, and distributors worldwide. The company was founded in 1984 and is headquartered in Alhambra, California.