Monday, January 14, 2019

NeoPhotonics hits preliminary sales of $90-92 M, sells Russian facility

NeoPhotonics announced preliminary revenue in the range of $90 to $92 million for Q4 2018, compared to the previously announced expectation of $87 to $92 million. Gross margin is expected to be approximately 24%-25%, compared to the previous expectation of 22%-26%. Total restructuring and other charges will be approximately $5.7 million, including restructuring costs, inventory write-downs and legal settlement expenses. Diluted Net loss per share are expected to be in the range of $0.18 to $0.15, inclusive of restructuring charges. Non-GAAP earnings per share are expected in the range of $0.00 to earnings of $0.04.

The company said these preliminary fourth-quarter results reflect recent developments including the end-of-life of certain client transceiver modules, which contributed approximately $10 million of revenue in 2018.

NeoPhotonics reached an agreement to settle its lawsuit with Lestina International, with a cash payment of $2.2 million. In addition, the company announced a definitive agreement to sell its manufacturing operations in Russia for approximately book value.

“As a company, we remain committed to our core capabilities, including our industry leading coherent components and solutions for data center interconnect and telecommunications systems,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “These actions will complete our move from module to component level solutions for client network applications and will further increase our focus on our more profitable, industry leading platforms for 400 Gigabits/sec to beyond 1 Terabit/sec on a single wavelength, in which our advanced hybrid photonic integration technology provides the highest value,” concluded Mr. Jenks.