EMCORE moves engineering and design operations to three sites
EMCORE Corp. (Nasdaq: EMKR), a maker of compound semiconductor components, announced before the opening bell that it’s consolidating its North American engineering and design centers into its three main operating sites in New Mexico, California and Pennsylvania. The Albuquerque, New Mexico-based company said it expects the consolidations to save about $7 million annually.
"Consolidation of these design centers into three core sites will provide greater synergy across product lines, better leverage of engineering resources, shorter time to market and increased customer support," COO Hong Hou said. "EMCORE will reduce operating costs by eliminating duplicate resources and infrastructures."
Production, product support, and key design personnel will be relocating to the three main operating sites. Restructuring charges associated with the consolidations are expected to be about $2 million. The design center in Virginia was closed in June 2007, and design centers in Illinois and Northern California will be closed by September 2007.
In pre-market trading, shares of the small-cap are up 1.19%, or $0.11, at $9.36. Over the last 52 weeks, shares have ranged between $3.84 and $9.91.
