© vladek dreamstime.com General | November 01, 2019
EMCORE announces CATV assets sale to Hytera
EMCORE Corporation has sold its CATV production equipment and transferred its CATV manufacturing operations from the company’s Beijing facility to Hytera.
In a press release, the company said the approximately USD 5.5 million sale price for the equipment is scheduled for receipt by EMCORE starting in December, through the September 2020 quarter. Hytera will use the equipment to manufacture CATV components and subsystems from its facility in Southeast Asia. On its fiscal third quarter 2019 earnings call recently, EMCORE said the agreement with HYTERA, which will streamline operations and move the company to a variable cost model for EMCORE’s CATV products, will support its goal of improving profitability and cash flow while eliminating exposure to tariffs imposed on China-made products. “We’ve been working to transition to a true EMS (electronics manufacturing services) model for our Cable TV products since 2015 when we launched the automation initiatives in our Beijing facility. Insertion of automation into Beijing dramatically improved yields and reduced cycle times, clearing the way for the final move to an EMS model. Hytera has been with us during our entire transformation and this agreement with them finalizes the realization of our strategy,” said Jeffrey Rittichier, President and CEO at EMCORE. EMCORE is headquartered in Alhambra, California.