Use our mobile site at: m.ITbriefing.net    Follow ITbriefing.net: Follow ITbriefing on Twitter   Follow ITbriefing via Facebook   Follow ITbriefing via RSS 
NeoPhotonics Announces Restructuring Actions and Preliminary Financial Results for the Third Quarter


 Tags:   News: Cameras & Photography                This was published: 5 Oct 2017 - 12:26 pm         Print article: Printer friendly page
          

NeoPhotonics Corporation (NYSE: NPTN), a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications, today announced that as a part of its continuing actions to improve profitability and cash flow, the Company has implemented certain restructuring actions. The actions include a reduction in force, real estate consolidation, a write down of inventory for certain programs and assets and a write-down of idle assets.



These actions are intended to accelerate the Company's goal of a return to profitability by implementing specific and sustainable measures designed to lower the Company’s breakeven revenue levels for profitability and free cash flow, while maintaining the Company’s focus on its core capabilities, including its industry leading coherent components and solutions for datacenter interconnect and telecommunications systems. The actions being taken are expected to reduce quarterly operating expenses with immediate impact and achieve an approximately two-million-dollar reduction when fully realized in the first quarter of 2018.

The costs to implement these actions are expected to be approximately $4.8 million, with $4.2 million in asset-write off costs and $0.6 million in severance costs. The Company expects to incur approximately $4.6 million of these costs in the third quarter with the remainder to be incurred in the fourth quarter.

“Lacking a clear indication of increased demand in China in the third quarter, we initiated several operational changes with the goal of expediting our return to profitability, including implementing certain restructuring initiatives designed to align our business with the current demand environment and lowering manufacturing output to manage inventory levels,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “In taking these actions, we have maintained our research and development focus on products for next generation coherent systems, operating at 400 Gigabits/sec to beyond 1 Terabit/sec, wherein our advanced hybrid photonic integration provides the highest value,” concluded Mr. Jenks.

In addition to these restructuring activities, the Company provided preliminary estimated financial results for the third quarter of 2017. Revenue is expected to be in the range of $69 to $71 million, with GAAP gross margin of approximately 10% to 13% and GAAP loss per share of $0.50 to $0.40, inclusive of restructuring charges. Excluding restructuring charges, and other regularly excluded items, the Company expects non-GAAP gross margin to be in the range of 14% to 17% and non-GAAP loss per share in the range of $0.35 to $0.27. A reconciliation of the non-GAAP financial measures to the most directly applicable GAAP financial measures is provided at the end of this press release.

These preliminary results compare to a previously provided forecast for third quarter revenue of $70 to $76 million, GAAP gross margin of 23% to 26%, and GAAP net loss per share of $0.21 to $0.11 and non-GAAP gross margin of 24% to 27% and non-GAAP loss of $0.17 to $0.07. In addition to restructuring charges, non-GAAP gross margin and non-GAAP net loss were negatively impacted by the Company’s decision to reduce production levels during the quarter resulting from a lack of visibility into future demand levels in China. While this reduction impacted overall capacity utilization and gross margin respectively in the third quarter, the Company anticipates these actions will help reduce inventory levels in the fourth quarter.

Cash, cash equivalents and restricted cash totaled approximately $74 million at the end of the third quarter.

 

Revised Outlook for the Quarter Ending September 30, 2017

             
      GAAP     Non-GAAP
Revenue     $69 to $71 million
Gross Margin     10% to 13%     14% to 17%
Earnings per share     $0.50 to $0.40 net loss     $0.35 to $0.27 net loss
       

The Non-GAAP outlook for the third quarter of 2017 excludes the impact of expected restructuring charges and end-of-life inventory write-downs of approximately $4.6 million, acquisition related costs of $0.2 million, amortization of intangibles of approximately $0.3 million and the anticipated impact of stock-based compensation of approximately $1.9 million, of which $0.3 million is estimated for cost of goods sold.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release includes statements that qualify as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the following topics: future financial results, demand for the Company’s high speed products, the Company’s market position, the outlook for the China market, and industry trends. Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: the Company’s reliance on a small number of customers for a substantial portion of its revenues; market growth in China and other key countries; possible reduction in or volatility of customer orders or delays in shipments of products to customers; timing of customer drawdowns of vendor-managed inventory; possible disruptions in the supply chain or in demand for the Company’s products due to industry developments; the ability of the Company's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; ability of the Company to meet customer demand; economic conditions or natural disasters; volatility in utilization of manufacturing operations, supporting utility services and other manufacturing costs; the savings anticipated from cost reduction actions and the impact of severance costs; reductions in the Company’s rate of new design wins, and/or the rate at which design wins go into production, and the rate of customer acceptance of new product introductions; potential pricing pressure that may arise from changing supply or demand conditions in the industry; the impact of any previous or future acquisitions or divestitures; challenges involving integration of acquired businesses and utilization of acquired technology or divestitures of assets and related product lines; the impact of the sale of the low speed transceiver product lines and the discontinuance or end of life of certain other products; market adoption, revenue growth and margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements and forecasts; the timely and successful development and market acceptance of new products and upgrades to existing products; the difficulty of predicting future cash needs; the nature of other investment opportunities available to the Company from time to time; the Company’s operating cash flow; changes in economic and industry projections; a decline in general conditions in the telecommunications equipment industry or the world economy generally; and the effects of seasonality. For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and its Form 10-Q for the three months ended June 30, 2017. All forward-looking statements are made as of the date of this press release, and the Company disclaims any duty to update such statements.

Article source - Business Wire, all right reserved. Copyright 2017
Trademarks, logos, pictures and other items may be copyright of firms mentioned in this article.




Further information:
Organisation name:    NeoPhotonics Corporation
Organisation stock symbol: NYSE:NPTN


Latest stock price data for NYSE:NPTN

 


Other related articles, tagged News: Cameras & Photography

· Infinite Peripherals Announces Tickets.com Technology Partnership   (01/17/18)
· Amazon Music Unlimited Coming to Australia and New Zealand on February 1   (01/17/18)
· CORRECTING and REPLACING Top Executives Kick Off Joint Initiative to Grow Women-Owned Businesses   (01/17/18)
· US Fieldbus Solutions Market for Process Industry 2018-2022 with ABB, Emerson Electric, Honeywell, Rockwell Automation, Schneider Electric, and Siemens Dominating - ResearchAndMarkets.com   (01/17/18)
· Intuit QuickBooks Makes Tax Time Easier for Small Businesses and the Self-Employed   (01/17/18)
· Comcast Unveils Unparalleled Winter Olympics Viewing Experience for Xfinity TV Customers across Platforms   (01/17/18)
· Data from Invaluable Marketplace Forecasts Strong Auction Market Growth in New Year Following Late Surge in 2017 That Led to 15% Yr/Yr Growth   (01/17/18)
· Harris Corporation to Announce Second Quarter Results on Tuesday, January 30, 2018   (01/17/18)
· Apple Accelerates US Investment and Job Creation   (01/17/18)
· Sage Bionetworks in Collaboration with The Michael J. Fox Foundation Announce Winners in the DREAM Parkinson’s Disease Digital Biomarker Challenge   (01/17/18)

>>>More articles  >>>

Latest tech videos:



· Malauzai"s Monkey Insights Analyzes General Digital Banking Usage for All of 2017 (2018-01-17 16:26)
Malauzai’s Monkey Insights Analyzes General Digital Banking Usage for All of 2017 - on DefenceBriefing.net

Malauzai Software, a provider of Mobile and Internet solutions for community financial institutions, released its January 2018 Monkey Insights that highlights key trends in internet and mobile banking usage based on December 2017 data for 400+ banks & credit unions, covering 17 million logins from 885,000 active Internet and Mobile Banking users.


· Ethical Hacking Proves More Lucrative Than Software Engineering for Some; Bounty Rewards No Longer #1 Motivation (2018-01-17 16:26)
Ethical Hacking Proves More Lucrative Than Software Engineering for Some; Bounty Rewards No Longer #1 Motivation - on DefenceBriefing.net

HackerOne, the leading hacker-powered security platform, today published its 2018 Hacker Report, from the largest survey ever conducted of the ethical hacker community. The report examines the geography, demographics, experience, tools used and motivations of nearly 2,000 bug bounty hackers across 100 countries.


· Aspect Software Secures PCI Level 1 Certification for Aspect Via™ in North America (2018-01-17 16:26)

Aspect Software, a leading provider of native customer engagement, workforce management, and self-service solutions, today announced that it has achieved PCI Level 1 certification for Aspect Via™ in North America and is on track to secure PCI Level 2 (Q1 2018) and PCI Level 1 (Q2 2018) certification for Aspect Via™ in Australia and the European Union. The PCI Level 1 certification was conducted by an independent 3rd party auditor. Aspect Via™, delivered through an open SaaS architecture and deployed in Amazon Web Services (AWS), is Aspect’s award-winning, complete Customer Engagement Platform in the cloud with native interaction management, workforce optimization and self-service capabilities, shared reporting, and a single UI with a persona-based UX for agents, team leads, managers and administrators.


· Coty to Launch "Let"s Get Ready" Skill for Amazon Echo Show (2018-01-17 16:26)
Coty to Launch ‘Let’s Get Ready’ Skill for Amazon Echo Show - on DefenceBriefing.net

Coty has teamed with Amazon to launch ‘Let’s Get Ready’, a new visual skill designed specifically for Echo Show, Amazon’s first Echo device with a screen. The strategic choice of Echo Show and the Alexa voice service combines Coty’s focus on voice-driven beauty services with visuals, which are critical in Beauty. Let’s Get Ready brings on demand, occasion-based look planning fine-tuned by personal attributes such as hair, eye and skin color. The skill will be available in the U.K. on the Echo Show as well as all other Echo devices in January.


· Top 3 Drivers for the Global Cloud DVR Market | Technavio (2018-01-17 16:06)
Top 3 Drivers for the Global Cloud DVR Market | Technavio - on DefenceBriefing.net

Technavio market research analysts forecast the global cloud DVR market to grow at a CAGR of close to 27% during the forecast period, according to their latest report.


· Resource Constraints and Cybersecurity Concerns Top the List of Challenges with IT Professionals at K-12 Schools, Surveyed by TeamDynamix and Kaseya (2018-01-17 16:06)
Resource Constraints and Cybersecurity Concerns Top the List of Challenges with IT Professionals at K-12 Schools, Surveyed by TeamDynamix and Kaseya - on DefenceBriefing.net

In a recent market study evaluating the IT maturity of K-12 school district IT departments conducted by TeamDynamix and Kaseya, 45 percent of participants stated that resource constraints are their top concern followed by cybersecurity (at 29 percent) going into 2018. The study also evaluated IT maturity among K-12 districts to determine what type of IT projects they will undertake this year. A significant majority—59 percent—seek to enhance self-service capabilities, currently at the low end of the IT maturity scale, to reduce cost and improve satisfaction and productivity of IT support groups. Additionally, districts self-ranked on the high end of the scale for their ability to deploy mobile learning devices, while their lowest marks were in resource-intensive areas or those that pose a serious cybersecurity risk. Click to Tweet


· IZEA Sets IZEA Crypto Q&A Conference Call for Thursday, January 18, 2018 at 8:00 a.m. EST (2018-01-17 15:46)
IZEA Sets IZEA Crypto Q&A Conference Call for Thursday, January 18, 2018 at 8:00 a.m. EST - on DefenceBriefing.net

IZEA, Inc. (NASDAQ-NMS: IZEA), operator of IZEAx®, the premier online marketplace connecting brands and publishers with influential content creators, will hold a conference call on Thursday, January 18, 2018 at 8:00 a.m. Eastern time to discuss the recent announcement of IZEA Crypto and the plans for incorporating blockchain in future operations.


· Comtech Telecommunications Corp. Receives $19.1 Million Follow-On Contract to Support U.S. Navy"s Advanced Time Division Multiple Access Interface Processor Terminals (2018-01-17 15:26)
Comtech Telecommunications Corp. Receives $19.1 Million Follow-On Contract to Support U.S. Navy’s Advanced Time Division Multiple Access Interface Processor Terminals - on DefenceBriefing.net

January 17, 2018--Comtech Telecommunications Corp. (NASDAQ-NMS: CMTL) announced today that during its second quarter of fiscal 2018, its Tempe, Arizona-based subsidiary, Comtech EF Data Corp., which is part of Comtech’s Commercial Solutions segment, received a follow-on contract to provide long-term support for the Advanced Time Division Multiple Access (TDMA) Interface Processor (ATIP) production terminals in support of the Space and Naval Warfare Systems Command (SPAWAR). This new contract is a 10-year IDIQ contract with a 5-year base and 5 one-year options. The total potential contract value is $19.1 million.


· CircleCI Secures $31 Million to Accelerate Software Development (2018-01-17 15:26)

CircleCI, the world’s leading continuous integration and delivery platform, today announced it has closed a $31 million Series C round of funding led by Top Tier Capital Partners alongside Industry Ventures and Heavybit, who join existing investors Scale Venture Partners, Baseline Ventures, Harrison Metal, and DFJ Ventures. Prior to this round, the company had raised a total of $28 million.


· Independent Research Firm Identifies GridPoint Among Leading Facility Optimization Software Vendors (2018-01-17 15:26)
Independent Research Firm Identifies GridPoint Among Leading Facility Optimization Software Vendors - on DefenceBriefing.net

GridPoint, a smart building technology leader, today announced that its platform has been named among the top global facility optimization software solutions in the Green Quadrant Facility Optimization Software report by Verdantix. The findings of this report are based on 135 functionality and success metrics compared between the top 14 global facility optimization software vendors.


· What to Expect in 2018: Ping Identity Predicts Proliferation of Blockchain Identities and Death of Knowledge-Based Authentication (2018-01-17 15:26)
What to Expect in 2018: Ping Identity Predicts Proliferation of Blockchain Identities and Death of Knowledge-Based Authentication - on DefenceBriefing.net

Ping Identity, the leader in Identity Defined Security, has unveiled its top five cybersecurity predictions for 2018, authored by its CTO office. These include advances in biometrics, the mass exposure of personally identifiable information from numerous data breaches, and a blockchain craze in 2018.


· The General Services Administration Awards Booz Allen a 5 Year, $165M Contract to Support USCYBERCOM (2018-01-17 15:26)
The General Services Administration Awards Booz Allen a 5 Year, $165M Contract to Support USCYBERCOM - on DefenceBriefing.net

Today, the tools and technology needed to carry out a large-scale cyber-attack are getting cheaper and easier to use. To defend the ever-changing and complex threat environment, the nation’s cyber defenders must have actionable intelligence as well as a keen sense of tactics and techniques to protect our organizations and the personal information of millions of people. To continue the support of this effort, the General Services Administration (GSA)/Federal System Integration and Management Center (FEDSIM) awarded Booz Allen Hamilton (NYSE: BAH) a five-year, $165M IDIQ contract to provide Plans and Policy, Training and Command Administrative and Staff support services to USCYBERCOM – a subordinate of the Department of Defense’s Strategic Command.


· Telos Corporation Selected by the United States Air Force for IT Enterprise Risk Management and Compliance Automation (2018-01-17 15:06)
Telos Corporation Selected by the United States Air Force for IT Enterprise Risk Management and Compliance Automation - on DefenceBriefing.net

Telos® Corporation, a leading provider of continuous security solutions and services for the world’s most security-conscious organizations, today announced that it has been selected by the United States Air Force (USAF) to provide risk management and compliance automation support of their Enterprise NIPRNet and SIPRNet environments.


· WiserCare Appoints Daniel J. Castillo, MD, MBA as Chief Executive Officer (2018-01-17 15:06)
WiserCare Appoints Daniel J. Castillo, MD, MBA as Chief Executive Officer - on DefenceBriefing.net

WiserCare, a leading digital patient decision support platform, announced today the appointment of Daniel J. Castillo, MD, MBA, as the company’s CEO. Dr. Castillo joins WiserCare after spending three years as the Chief Strategy Officer at Evolution Health, a division of Envision Healthcare, and prior to that, as National Medical Director of Healthcare Quality Evaluation at the Joint Commission. Dr. Castillo is also a practicing emergency physician, currently at NorthShore University Health System in Evanston, Illinois.


· Vitals SmartShopper Expands to Millions of Consumers in 2018 (2018-01-17 14:46)
Vitals SmartShopper Expands to Millions of Consumers in 2018 - on DefenceBriefing.net

This January, over 200 more employers are offering Vitals SmartShopper to their employees than last year. When it comes to health care, people often pay more than they should for everyday medical procedures. Those costs come out of a patient’s pocket – and the employer who subsidizes their insurance. SmartShopper, now serving over 2 million consumers nationwide, is a proven engagement and incentive program that saves consumers and employers money on their health care.


· ShopKeep Grows Partnership with First Data and Launches Customer Facing Clover® Mini Devices to Small Business Owners (2018-01-17 14:26)
ShopKeep Grows Partnership with First Data and Launches Customer Facing Clover® Mini Devices to Small Business Owners - on DefenceBriefing.net

ShopKeep, the top rated tablet to cloud payments and point of sale platform chosen by over 24,000 independent retailers and restaurants, announced it has launched on the Clover Mini - an all-in-one point-of-sale device that accepts EMV and mobile wallet transactions, and includes a receipt printer. This is the next step in the strategic relationship between ShopKeep and First Data since announcing an expansion to their partnership in February 2017 and just on the heels of a strategic investment by First Data in ShopKeep during the second half of 2017.


· DreamBox Learning® Partners with Knotion to Deliver Award-Winning Adaptive Math Learning Platform to Mexico Schools (2018-01-17 14:26)
DreamBox Learning® Partners with Knotion to Deliver Award-Winning Adaptive Math Learning Platform to Mexico Schools - on DefenceBriefing.net

DreamBox Learning®, which pioneered Intelligent Adaptive Learning™ technology in schools across the U.S. and Canada, today announced it has been selected by Knotion, a Mexico-based provider of integrated learning ecosystems, to deliver its award-winning math learning platform in Spanish and English to empower differentiation and personalized learning for thousands of K-9 students across Mexico.


· December Origination Insight Report From Ellie Mae Shows Refinances Rise to 40 Percent of Total Closed Loans; Closing Rates Increase for All Loans (2018-01-17 14:26)
December Origination Insight Report From Ellie Mae Shows Refinances Rise to 40 Percent of Total Closed Loans; Closing Rates Increase for All Loans - on DefenceBriefing.net

The percentage of refinances rose to 40 percent of all closed loans, up 1 percent from the month prior according to the December Origination Insight Report from Ellie Mae® (NYSE: ELLI), the leading cloud-based platform provider for the mortgage finance industry. The percentage of FHA refinances increased to 25 percent of closed loans in the month, up 1 percentage point, and the percentage of conventional refinances increased to 47 percent of closed loans in December, up from 45 percent the month prior.




© Website copyright Incandore Limited 2012. All rights reserved. All content copyrights / trademarks remain the property of their respective owners.