Use our mobile site at:    Follow 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

· Breaking News from ICV Concerning Man Overboard Detection Systems   (10/24/17)
· AACN Partners with CastleBranch to Facilitate Excellence in the Clinical Preparation of Nursing Professionals   (10/23/17)
· Amkor Technology to Announce Third Quarter 2017 Financial Results on October 30, 2017   (10/23/17)
· ADDING MULTIMEDIA AVer Helps Restore Communities and Schools Affected by Recent Natural Disasters   (10/23/17)
· Securus Technologies’ Associate Population Increases by 2.5x Over the Last Nine (9) Years   (10/23/17)
· Tessco Reports Second-Quarter 2018 Financial Results   (10/23/17)
· What Do Equifax, Yahoo!, Blue Cross/Blue Shield, Verizon, Whole Foods and Hyatt Hotels Have in Common? They Have ALL Been Hacked...   (10/23/17)
· Howe Releases Confidential Reports Obtained at Fair Isaac Corporation, SubscriberWise Confirms   (10/23/17)
· Rambus Reports Third Quarter 2017 Financial Results   (10/23/17)
· CommScope Celebrates its Catawba, N.C. Facility’s Golden Anniversary   (10/23/17)

>>>More articles  >>>

Latest tech videos:

· STATS Names Casey Wasserman to Board of Directors (2017-10-23 16:26)
STATS Names Casey Wasserman to Board of Directors - on

STATS, the global leader in sports data and intelligence, announced today that it has named Casey Wasserman as its newest Board Director.

· SlingStudio Announces 4K Video Support, Live Production Enhancements and Custom RTMP Features (2017-10-23 16:26)
SlingStudio Announces 4K Video Support, Live Production Enhancements and Custom RTMP Features - on

SlingStudio today unveiled new features to further bolster its multi-camera video production capabilities, including 4K video support, live production enhancements and custom RTMP for live broadcasting. These features will be available for download to new and existing SlingStudio units. SlingStudio is the industry’s first portable, wireless multi-camera video production and livestreaming platform by Sling Media L.L.C., a subsidiary of DISH Network Corp.

· Cint Partners With eCGlobal Research Solutions to Expand Reach Into Latin America (2017-10-23 16:26)
Cint Partners With eCGlobal Research Solutions to Expand Reach Into Latin America - on

Cint, the world’s Insight Exchange, today announced a strategic partnership with eCGlobal Research Solutions, a marketing technology solutions provider, to gain significant reach into the Latin America (LATAM) market.

· Buffalo Wild Wings® Joins Forces with Call of Duty®: WWII to Offer Loyalty Members Exclusive 2XP Codes (2017-10-23 16:26)
Buffalo Wild Wings® Joins Forces with Call of Duty®: WWII to Offer Loyalty Members Exclusive 2XP Codes - on

Buffalo Wild Wings, Inc. (NASDAQ-NMS: BWLD) today announced a partnership with video game publisher Activision ahead of the release of Call of Duty®: WWII on November 3. From October 24 through November 30, Buffalo Wild Wings’ Blazin’ Rewards® members can obtain and redeem codes for double Multiplayer experience points (2XP) in the new installment of the blockbuster Call of Duty® franchise.

· ON Semiconductor Recognized by Celestica with a 2016 Total Cost of Ownership Supplier Award, Winning 'Best Semiconductor Partner' (2017-10-23 16:26)
ON Semiconductor Recognized by Celestica with a 2016 Total Cost of Ownership Supplier Award, Winning \'Best Semiconductor Partner\' - on

ON Semiconductor (NASDAQ-NMS: ON), driving energy efficient innovations, today announced it has been awarded a 2016 Total Cost of Ownership (TCOO™) Supplier Award from Celestica, a leader in design, manufacturing and supply chain solutions for the world's most innovative companies. Celestica’s awards program recognizes suppliers that provide the best TCOO™ performance to Celestica and support the company’s overall business objectives.

· simPRO Pioneers API Integration with Profit Rhino to Deliver World Class Flat Rate Pricing Tool for Field Technicians, Contractors and Customers (2017-10-23 16:26)
simPRO Pioneers API Integration with Profit Rhino to Deliver World Class Flat Rate Pricing Tool for Field Technicians, Contractors and Customers - on

Job management software provider simPRO Software Ltd has teamed up with Profit Rhino to launch the country’s first fully integrated flat rate pricing tool for contractors.

· Baidu to Hold "Mobile Leap" Workshop for App Publishers in Silicon Valley (2017-10-23 16:26)

Baidu, Inc. (NASDAQ-NMS: BIDU), the leading Chinese language internet search provider, today announced that it will hold a new workshop for app publishers in Silicon Valley titled “Mobile Leap: How to Increase Your App Earnings with Innovative Ad Formats,” on November 6, 2017. The workshop will focus on app monetization strategies for publishers, with case studies from Baidu’s mobile advertising platform DU Ad Platform. Other topics will include findings from DU Ad Platform’s H1 2017 regional trends white paper, and an overview of Baidu’s AI strategy.

· Tavant Powers Digital Transformation of (2017-10-23 16:06)
Tavant Powers Digital Transformation of - on

Tavant, a specialized products and platforms provider to consumer lending companies, today announced that it has enabled digital mortgage experience for, a leading mortgage lender focused on providing easy-to-access online mortgage services and a dba of First Guaranty Mortgage Corporation, by transforming its website.

· Caspio Named a Leader in Low-Code Platforms for Business Developers (2017-10-23 15:46)
Caspio Named a Leader in Low-Code Platforms for Business Developers - on

Caspio, the leading low-code development platform for online database applications, today announced that it has been named a “Leader” in The Forrester New Wave™: Low-Code Platforms For Business Developers, Q4 2017 report published today by Forrester Research. Caspio received a differentiated rating in six of ten evaluated criteria, including user interface development, data management, reporting and analysis, cloud platform attributes, market approach and road map.

· Quicken 2018 Is Here (2017-10-23 15:46)
Quicken 2018 Is Here - on

Continuing the momentum since becoming a standalone company, Quicken Inc. announces its 2018 releases of Quicken for Windows and Mac users. With the updated product line, both offerings deliver on the company’s commitment to revitalizing Quicken. They include improved online bill management, new investment features, and simpler upgrades with Quicken’s membership program, which provides automatic access to the latest versions. From staying on top of finances to managing investments, the 2018 releases of Quicken help customers manage their finances at every stage of life.

· Robin Roberts to Receive Distinguished Service Award at 2018 NAB Show (2017-10-23 15:46)
Robin Roberts to Receive Distinguished Service Award at 2018 NAB Show - on

Co-anchor of ABC’s “Good Morning America” Robin Roberts will receive the NAB Distinguished Service Award (DSA) during the 2018 NAB Show in Las Vegas. Roberts will accept her award at the NAB Show Opening on Monday, April 9.

· CTA Mourns the Loss of Jim Barry, its Digital Answerman (2017-10-23 15:46)
CTA Mourns the Loss of Jim Barry, its Digital Answerman - on

The Consumer Technology Association (CTA) mourns the loss of its dear friend Jim Barry who passed away Friday night at the age of 71. Following a distinguished career in journalism, Barry served as CTA’s Digital Answerman for the past 22 years, showcasing and explaining technology products to consumers via television and radio appearances along with newspaper interviews across the country.

· Vested Launches Custom Financial PR Skill For Amazon Alexa (2017-10-23 15:26)

Vested, the fastest growing public relations agency globally, today announced the launch of the first news product on Amazon Alexa developed specifically for PR professionals in finance. Financial communications executives can now access Vested’s weekly newsletter, “Vested Suggested,” to keep up with their industry’s news on-demand through the device.

· Mastercard Simplifies Managing Your Digital Footprint with Launch of Consumer Control (2017-10-23 15:26)
Mastercard Simplifies Managing Your Digital Footprint with Launch of Consumer Control - on

Do you know all the places you’ve stored your payment card details? From shopping sites to billers, keeping track of where your card credentials are held can be a daunting task. Today, Mastercard Consumer Control was introduced to address just this. The solution provides consumers a central view of where their cards are stored across all digital channels, as well as the ability to control how, when and where those cards are used.

· Vology Voted Best Managed IT Firm in Tampa Bay (2017-10-23 15:26)
Vology Voted Best Managed IT Firm in Tampa Bay - on

Vology, a leading Managed IT Services Provider, announced today that Tampa Bay Business Journal readers voted the company Best Managed IT Firm in the region.

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