NeoPhotonics’ Q3 revenue drops to $71 million

NeoPhotonics reported Q3 revenue of $71.1 million, in comparison to $73.2 million in the prior quarter, and down from $103.3 million in the same period last year. Gross margin was 14.8%, compared to 22.9% in the prior quarter. There was a net loss of$18.2 million, compared to a net loss of $9.3 million in the prior quarter.

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 of NeoPhotonics. “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 NeoPhotonics’ core strengths,” concluded Mr. Jenks.

• In October 2017, citing uncertainty in demand from China, NeoPhotonic announced a set of restructuring actions, including a reduction in force, real estate consolidation, a write-down of inventory for certain programs and assets and a write-down of idle assets. NeoPhotonics also trimmed its financial outlook for the third quarter of 2017, saying revenue is now 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. Previously, the company had stated revenue expectations for the third quarter of 2017 to be $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%.