NeoPhotonics reported Q2 2016 revenue of $99.1 million, up $13.8 million, or 16.1%, from the second quarter of 2015, and flat from the prior quarter. GAAP Net income was $2.7 million, up from $1.8 million in the second quarter of 2015, and up from $2.3 million in the prior quarter.
“Globally, we continue to see the overall environment for 100G and beyond products very robust across both telecom and datacenter applications. In spite of PON market softness, we delivered solid financial results in the second quarter including strong profitability at 15 cents per share and cash generation of approximately $10 million. We are accelerating our high speed product growth and we have announced the end of life of our declining and lower margin PON products,” stated Tim Jenks, Chairman and CEO of NeoPhotonics. “We are experiencing an unprecedented level of demand for our 100G products, which we’re seeing as a major and sustaining mid-term trend in China as well as in the west. Given these industry trends and our strong market position, we are raising and narrowing our expected revenue growth for 2016 to a range of 22-25%,” concluded Mr. Jenks.