NeoPhotonics announced Q3 2014 revenue of $81.6 million, an increase of $4.1 million, or 5.3%, from the second quarter of 2014 and up $4.8 million, or 6.2%, from the third quarter of 2013. Gross margin was 24.6%, up from 18.8% in the second quarter of 2014, and up from 23.7% in the third quarter of 2013. Net loss was $1.9 million, a decrease from a net loss of $6.8 million in the second quarter of 2014 and from a net loss of $9.4 million in the third quarter of 2013.
The company noted sequential 40/100G revenue growth of 22.9%.
“We are pleased to announce that we again achieved record revenue this quarter. Our previously announced profit improvement actions are taking hold and moved us into non-GAAP profitability. We expect to operate in a manner focused on our path to profitability; managing expenses tightly, and continuing to operate so as to strengthen our balance sheet,” said Tim Jenks, NeoPhotonics Chairman and CEO. “Equally important, we believe our product focus on 100G, enhanced by our pending acquisition of EMCORE’s tunable laser product line, positions us to be a major contributor to this expanding market segment, and therefore benefit from the accelerating worldwide deployments of 100G systems,” continued Mr. Jenks.
- Last month, NeoPhotonics agreed to acquire EMCORE Corporation’s tunable laser and transceiver product lines for approximately $17.5 million, which consists of $15.0 million and a working capital and inventory adjustment of approximately $2.5 million. The deal includes production and development fixed assets, inventory and intellectual property for the ECL-based Integrable Tunable Laser Assembly (ITLA), micro-ITLA, Tunable XFP transceiver, tunable optical sub-assemblies and Integrated Coherent Transmitter (ICT) products for 10, 40, 100 and 400G telecommunications networks.
NeoPhotonics said it intends to add the EMCORE tunable lasers to its current product line and to continue to serve EMCORE’s current customers without interruption. EMCORE has supported these products from its facility in Newark, California and NeoPhotonics expects to integrate this business into in its existing Silicon Valley facilities. EMCORE’s revenue for this product line has been approximately $9 million per quarter. The acquisition is expected to be accretive to NeoPhotonics by the second quarter of 2015.
