NeoPhotonics, a designer and manufacturer of optoelectronic solutions for high speed communications networks, announced financial results for its fourth quarter and year ended December 31, 2016, as follows:
1. Revenue for the fourth quarter of 2016 of $109.84 million, up 6.3% versus $103.31 million in the third quarter and up 23.2% from $89.12 million in the fourth quarter of 2015.
2. Gross income for the fourth quarter of 2016 of $31.03 million, up 13.0 % versus $27.45 million in the third quarter and up 23.6% from $25.11 million in the fourth quarter of 2015.
3. R&D expenditure for the fourth quarter of 2016 of $15.17 million, down 13.1% versus $17.47 million in the third quarter and up 28.8% from $11.83 million in the fourth quarter of 2015.
4. SG&A expenditure for the fourth quarter of 2016 of $12.58 million, down 20.2% versus $15.76 million in the third quarter and down 3.4% from $13.02 million in the fourth quarter of 2015.
5. Total operating expenditure for the fourth quarter of 2016 of $29.19 million, down 13.6% versus $33.84 million in the third quarter and up 13.3% from $25.76 million in the fourth quarter of 2015.
6. On a GAAP basis, net income for the fourth quarter of 2016 of $2.00, versus net loss of $7.19 in the third quarter and net income of $399,000 in the fourth quarter of 2015.
On a non-GAAP basis, net income for the fourth quarter of 2016 of $6.29 million, versus net income of $2.92 million in the third quarter and net income of $6.92 million in the fourth quarter of 2015.
7. Cash, cash equivalents and short-term investments as of December 31, 2016 of $101.51 million, compared with $100.09 as at September 30, 2016 and $99.38 million as at December 31, 2015.
Additional results and notes
For the full year 2016, NeoPhotnics reported revenue of $411.42 million, compared with $339.44 million in 2015, with net loss of $205,000, compared with net income of $3.67 million in 2015.
For the fourth quarter of 2016, the company noted that sales of high speed products were $78.5 million (72% of the total), with network products and solutions representing $31.3 million (28% of total revenue), while revenue excluding low speed transceiver products for the quarter was $97 million, up 52% versus the prior year period and up 8% from the third quarter.*
On a geographic basis by shipment destination, in the fourth quarter Americas revenue was 18% of total sales, compared to 19% in the third quarter, China accounted for 65% of the total, compared to 61% in the prior quarter, Japan revenue was 4%, compared to 5% in the prior quarter, with rest of the world sales 13% of the total, compared to 15% in the prior quarter.
For the fourth quarter, NeoPhotonic’s stated it had two 10%-or-greater customers, with Ciena representing approximately 14% of total revenue, compared to 15% in the third quarter, and Huawei Technologies accounting for 53% of total revenue, compared to 48% in third quarter.
Outlook
For the first quarter ending March 31, 2017, NeoPhotonics expects revenue of between $67 and $73 million, representing a sequential decline of 36.2% at the midpoint.
* NeoPhotonics closed the sale of its low speed transceiver business in January 2017.
