& cplSiteName &

NeoPhotonics Provides Financial Update

Light Reading
News Wire Feed
Light Reading
4/10/2014
50%
50%

SAN Jose, Calif. -- NeoPhotonics Corporation (NPTN), a leading designer and manufacturer of photonic integrated circuits, or PIC, based optoelectronic modules and subsystems for bandwidth-intensive, high speed communications networks, today announced financial results for its third quarter ended September 30, 2013. The Company further announced that it will file today with the Securities and Exchange Commission (SEC) amended Form 10-Q reports with its restated financial results for its first and second quarters ended March 31, 2013 and June 30, 2013, respectively, together with its Form 10-Q report for third quarter 2013 results.

“After several quarters of slower than expected growth in China, we are pleased to see the ramp in demand for 100G solutions now beginning to materialize,” said Tim Jenks, Chairman, President and CEO of NeoPhotonics. “Further, we are excited to see the shift to 100G in the metro and data center gaining momentum and believe these could be sizeable market opportunities for the industry as well as NeoPhotonics in the years ahead,” concluded Jenks.

Third Quarter Summary

Following is a summary of certain key financial measures for the third quarter of 2013 which are compared with the same measures from the second quarter of 2013 and from the third quarter of 2012. The financial measures for the second quarter of 2013 in this press release are restated and revised as outlined following this summary.

  • Revenue was $76.8 million, up $1.8 million, or 2%, from the second quarter of 2013 and up $10.7 million, or 16%, from the third quarter of 2012.

  • Gross margin was 23.7%, up from 20.8% in the second quarter of 2013 and down from 31.2% in the third quarter of 2012.

  • Non-GAAP gross margin was 27.5%, up from 25.1% in the second quarter of 2013 and down from 32.9% in the third quarter of 2012.

  • Net loss was $9.4 million, an increase from a net loss of $8.3 million in the second quarter of 2013 and down from a net income of $0.7 million in the third quarter of 2012.

  • Non-GAAP net loss was $3.2 million, a decrease from a net loss of $3.8 million in the second quarter of 2013 and down from a net income of $2.7 million in the third quarter of 2012.

  • Diluted net loss per share was $0.30, an increase from a diluted net loss per share of $0.27 in the second quarter of 2013 and down from a diluted net income per share of $0.02 in the third quarter of 2012.

  • Non-GAAP diluted net loss per share was $0.10, a decrease from a diluted net loss per share of $0.12 in the second quarter of 2013 and down from a diluted net income per share of $0.08 in the third quarter of 2012.

  • Adjusted EBITDA was $1.9 million, an increase from $1.4 million in the second quarter of 2013 and down from $6.4 million in the third quarter of 2012.

    At September 30, 2013, combined cash, cash equivalents and short-term investments was $70.6 million, down from $74.4 million at June 30, 2013. Combined notes payable and debt was $44.9 million at September 30, 2013, which is down from $45.9 million at June 30, 2013.

    Our Non-GAAP and Adjusted EBITDA measures exclude certain GAAP financial measures, and a reconciliation of the Non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release.

    Q1 2013 and Q2 2013 Restatements and Revisions

    The Company will file with the Securities and Exchange Commission (SEC) today its amended quarterly reports on Form 10-Q/A for the quarters ended March 31, 2013 and June 30, 2013. As disclosed in the Company’s Form 8-K filed with the SEC on November 14, 2013, the Company determined that its unaudited condensed consolidated financial statements for the three months ended March 31, 2013 and the three and six months ended June 30, 2013 contained an error related to its accounting for a real estate registration tax which was incorrectly reflected as a component of the property, plant and equipment acquired as part of the purchase of NeoPhotonics Semiconductor (formerly the Optical Component Unit of LAPIS Semiconductor). In addition, the Company has made other corrections related to the purchase of NeoPhotonics Semiconductor, primarily additional real estate registration tax and fixed asset valuation modifications, reclassified certain amounts and made other adjustments, all of which were discovered during the close of its September 30, 2013 accounting records. Full details will be contained within the amended quarterly reports on Form 10/Q-A, when filed. Changes from the restatements and revisions include:

  • For the quarter ended March 31, 2013, there was no change in revenue and an increase in diluted net loss per share of $0.06 to $0.40 diluted net loss per share.

  • For the quarter ended June 30, 2013, there was no change in revenue and a decrease in diluted net loss per share of $0.04 to $0.27 diluted net loss per share.

  • For the six months ended June 30, 2013, there was no change in revenue and an increase in diluted net loss per share of $0.02 to $0.67 diluted net loss per share.

    Revision of the December 31, 2012 Balance Sheet

    As previously disclosed in the Company’s prior financial statements, the Company may be required to pay a $5.0 million penalty if it does not achieve certain performance obligations agreed to in connection with the sale of its common stock in a private placement transaction on April 27, 2012. The penalty payment was originally classified outside of equity as redeemable common stock at December 31, 2012. The Company has since determined that the $5.0 million penalty payment is an embedded derivative instrument and has thus classified $4.9 million of the $5.0 million to additional paid-in capital and the remaining $0.1 million, representing the estimated fair value of the derivative, to other noncurrent liabilities at December 31, 2012. This revision is reflected in the Balance Sheet as of December 31, 2012 presented in this press release.

    Outlook for the Quarter Ending December 31, 2013

    The Company’s updated expectations for the fourth quarter 2013 are:

  • Revenue in the range of $74 million to $75 million versus the Company’s prior outlook range (announced in November 2013) of $70 to $76 million

  • Non-GAAP gross margin in the range of 25% to 28%

  • Diluted net loss per share in the range of $0.15 to $0.20, and on a Non-GAAP basis in the range of a net loss of $0.05 to $0.10 per diluted share

    The Company did not provide an outlook previously on Non-GAAP gross margin, on diluted net loss per share, or on diluted Non-GAAP net loss per share.

    The Non-GAAP outlook for the fourth quarter of 2013 excludes approximately $2.9 million of expenses related to the expected amortization of intangibles, anticipated impact of stock-based compensation and other assets. Of these expenses, $1.1 million is estimated to relate to cost of goods sold.

    Outlook for the Quarter Ending March 31, 2014

    The Company’s expectation for the first quarter of 2014 is:

  • Revenue in the range of $67 million to $69 million.

    Update on NYSE Listing

    In addition, on April 3, 2014, the Company received a letter from the NYSE Regulation, Inc. (the “Exchange”) indicating that the Company is not in compliance with the Exchange’s continued listing requirements under the timely filing criteria outlined in Section 802.01E of the NYSE-Listed Company Manual as a result of the Company’s failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The Company did not timely file the Form 10-K because of the reasons set forth below. The Company understands that the letter is routine practice under NYSE rules when a listed Company does not make a timely filing with the SEC.

    The NYSE has informed the Company that under NYSE rules the Company will have until six months from the filing due date (i.e., until October 1, 2014) to file its Form 10-K. The Company can regain compliance with the NYSE listing standards at any time prior to such date once it files the Form 10-K with the SEC, along with its Quarterly Report on Form 10-Q for the period ended September 30, 2013. In the event that the Company has failed to cure the deficiency prior to October 1, 2014, the NYSE may grant, at its discretion, a further extension of up to six months, depending on the specific circumstances. The letter also notes that regardless of these procedures, the NYSE may commence delisting proceedings at any time if the circumstances warrant.

    Until the Company files the Form 10-K and Form 10-Q, the Company's common stock will remain listed on the NYSE under the symbol "NPTN," but it will have an "LF" indicator by the NYSE to signify the Company's late filing status.

    As previously disclosed in its Notification of Late Filing on Form 12b-25 filed with the SEC on March 18, 2014, the Company has delayed filing its Annual Report on Form 10-K because the Company required additional time to complete the adjustments described above to its consolidated financial statements on Forms 10-Q/A for each of the quarterly periods ended March 31, 2013 and June 30, 2013 and its quarterly report on Form 10-Q for the quarterly period ended September 30, 2013. With these adjustments now completed, the Company will now need to complete its financial statements and disclosures as of December 31, 2013, finalize the preparation of the Form 10-K, conclude testing of internal controls and complete the audit process with its independent public accounting firm. The Company intends to file the Form 10-K upon completion of these matters.

    NeoPhotonics Corp. (NYSE: NPTN)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Wednesday, September 14, 1:00PM EDT
    What Is Agile?
    Kent J. McDonald, Product Owner, Agile Alliance
    UPCOMING COURSE SCHEDULE
    Friday, September 16, 1:00PM EDT
    How to Implement Agile
    Alan Bateman, Director, Agile Transformation
    Wednesday, September 21, 1:00PM EDT
    What Is DevOps?
    Colin Kincaid, CTO, Service Provider, Cisco
    Friday, September 23, 1:00PM EDT
    How to Implement DevOps
    ,
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Between the CEOs
    CEO Chat: UXP Systems' Gemini Waghmare

    8|26|16   |     |   (0) comments


    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    LRTV Custom TV
    F5 Virtual Network Function Integrations With Partner Orchestration Platform

    8|24|16   |   6:38   |   (0) comments


    F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
    Between the CEOs
    CEO Chat: Intel's Alexis Black Bjorlin

    8|17|16   |   06:23   |   (0) comments


    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Telecom Innovators Video Showcase
    Accelerating Telecom Digital Transformation With Nominum DNS

    8|1|16   |   12:04   |   (0) comments


    Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
    LRTV Custom TV
    Reinventing Operations for a Virtual, Software-Defined World

    7|28|16   |   5:23   |   (0) comments


    Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
    Women in Comms Introduction Videos
    Fujitsu Sales Leader Shares Lessons Learned

    7|27|16   |   5:12   |   (1) comment


    As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
    Telecom Innovators Video Showcase
    VeEX Test & Measurement Solutions

    7|25|16   |   08:57   |   (0) comments


    Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
    LRTV Custom TV
    VeEX: Live From BCE 2016

    7|25|16   |   03:20   |   (0) comments


    VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
    LRTV Custom TV
    Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

    7|25|16   |   03:09   |   (0) comments


    Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
    From the Founder
    The Russo Report: Driving Disruption

    7|25|16   |   07:44   |   (2) comments


    In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
    LRTV Custom TV
    NetScout: Maximizing Enterprise Cloud for Digital Transformation

    7|20|16   |   04:53   |   (0) comments


    Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
    Women in Comms Introduction Videos
    Ciena's VP Offers a Career Crash Course

    7|20|16   |   4:14   |   (2) comments


    How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Cisco Developing 'Monica' Digital Assistant
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
    FirstNet: A Billion-Dollar Boondoggle?
    Dan Jones, Mobile Editor, 8/26/2016
    WiCipedia: Should Men Be Included? & Olympians Face Discrimination
    Eryn Leavens, Special Features & Copy Editor, 8/26/2016
    Google Fiber Can't Be Called a Failure
    Carol Wilson, Editor-at-large, 8/26/2016
    Google Fiber Downsizing Not Confirmed
    Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    Live Digital Audio

    Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.