NeoPhotonics, a developer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications, has just announced financial results for its third quarter, which ended September 30, 2017.
“We are focused on growth initiatives in telecom, data center and cloud markets, as well as operational execution to lower our breakeven level as China continues with steady though muted demand,” said Tim Jenks, Chairman and CEO.
“Growth drivers in our markets include metro deployments across the globe, China high speed build-outs in advance of 5G wireless, and data centers and big data applications that are embracing our higher speed technologies and leverage our core strengths.”
* Quarterly revenue of $71.1 million ($73.2 million in previous quarter)
* Non-GAAP net loss was –$10.9 million, (–$6.6 million)
* Non-GAAP diluted net loss per share was $0.25, ($0.15)
* Adjusted EBITDA was negative $4.5 million, (positive $48,000)
* High speed products climb to highest mix at 84% of revenue
* Restructuring actions taken to improve profitability while focusing investment on growth opportunities
Non-GAAP results in the third quarter of 2017 exclude $0.4 million of asset sale related costs and amortization of acquisition-related intangibles, $1.9 million of stock-based compensation expense, $2.0 million of end-of-life related inventory write-downs and $3.1 million of restructuring charges.
As of September 30, 2017, cash and cash equivalents, short-term investments and restricted cash, together totaled $73.7 million, compared to $79.0 million at June 30, 2017. Restricted cash as of September 30, 2017 was $2.9 million, down from $3.3 million at June 30, 2017.
For its next trading quarter, ending December 31, 2017, the company predicted that its GAAP revenue will be $69 to $74 million; gross margin (GAAP) 19% to 22% and (non-GAAP) 20% to 23%; operating expenses will be $25 to $26 million (GAAP) and $23 to $24 million (non-GAAP); earnings per share will be $0.29 to $0.19 net loss (GAAP) and $0.23 to $0.13 (non-GAAP).
Neophotonics stated, “The non-GAAP outlook for the fourth quarter of 2017 excludes the impact of expected amortization of intangibles of approximately $0.3 million, the anticipated impact of stock-based compensation of $1.9 million, of which $0.3 million is estimated for cost of goods sold and $0.7 million for the expected impact of restructuring.”