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Loss-making CPV solar cell manufacturer Emcore has approved a one-for-four reverse stock split. The move, expected to take action February 15, 2012, means that the number of issued and outstanding shares in the company would be reduced by approximately 94 million to approximately 23.5 million. The market value of the total number of shares would remain the same.
Emcore posted revenue in 2011 of US$200.9 million, a 5% increase compared to the prior year. Revenue for its photovoltaics segment was US$75.3 million, which represents an 8% increase compared to the prior year.
However, the company continued to make losses. Emcore posted a consolidated net loss of US$34.2 million in 2011, a US$10.5 million increase on the previous year. As of September 30, 2011, cash, cash equivalents, and restricted cash totalled approximately US$16.1 million.
Typically, reverse stock splits are undertaken by companies to avoid being delisted should shares be trading below the US$1.0 Nasdaq rule, or to make shares look more valuable on reduced outstanding floating shares.
