NeoPhotonics Corporation (NYSE:NPTN), a leading designer and
manufacturer of optoelectronic solutions for the highest speed
communications networks in telecom and datacenter applications, today
announced financial results for its fourth quarter and year ended
December 31, 2016.
"2016 was a strong year for NeoPhotonics and we believe our capacity
additions and new product introductions position us well to serve the
100G and beyond market as it continues to grow over the next several
years," said Tim Jenks, Chairman and CEO of NeoPhotonics. "Despite near
term volatility in our largest served market, we believe the macro
trends of the industry favor our core capabilities of delivering the
highest performance products for the most demanding applications,"
concluded Mr. Jenks.
Fourth Quarter Summary
At December 31, 2016, cash and cash equivalents, short-term investments
and restricted cash, together totaled $105.6 million, up from $102.9
million at September 30, 2016. Restricted cash at December 31, 2016 was
$4.1 million, $1.3 million higher than September 30, 2016.
Non-GAAP results exclude $0.6 and $4.5 million of amortization of
acquisition-related intangibles, $2.6 and $17.1 million of stock-based
compensation expense and $1.2 and $2.1 million of costs related to the
sale of the assets of our low speed product lines and other acquisition
related costs, for the fourth quarter and fiscal year, respectively. 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.
Outlook for the Quarter Ending March 31, 2017
The Non-GAAP outlook for the first quarter of 2017 excludes the impact
of expected amortization of intangibles of approximately $0.4 million,
the anticipated impact of stock-based compensation of approximately $1.8
million, of which $0.2 million is estimated for cost of goods sold, and
approximately $0.3 million of costs related to the sale of the assets of
our low speed product lines. Our GAAP outlook reflects the recognition
of an anticipated gain on the sale of our low speed transceiver product
assets of approximately $4.0 million or $0.09 per share.
Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures
The Company's non-GAAP and adjusted EBITDA measures exclude certain GAAP
financial measures. 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. These non-GAAP financial measures differ from GAAP
measures with the same captions and may differ from non-GAAP financial
measures with the same or similar captions that are used by other
companies. As such, these non-GAAP measures should be considered as a
supplement to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP.
The Company uses these non-GAAP financial measures to analyze its
operating performance and future prospects, develop internal budgets and
financial goals, and to facilitate period-to-period comparisons.
NeoPhotonics believes that these non-GAAP financial measures reflect an
additional way of viewing aspects of its operations that, when viewed
with its GAAP results, provide a more complete understanding of factors
and trends affecting its business.
The Company will host a conference call today, March 14, 2017, at 4:30
P.M. Eastern Time (1:30 p.m. Pacific Time). The call will be available,
live, to interested parties by dialing 1-888-481-2877. For international
callers, please dial +1 719-325-4937. The Conference ID number is
3735426. A live webcast will be available in the Investor Relations
section of NeoPhotonics' website at: www.neophotonics.com.
A replay of the webcast will be available in the Investor Relations
section of the Company's web site after the conclusion of the call and
remain available for approximately 30 calendar days.
NeoPhotonics is a leading designer and manufacturer of advanced hybrid
photonic integrated optoelectronic modules and subsystems for
bandwidth-intensive, high-speed communications networks. The Company's
products enable cost-effective, high-speed data transmission and
efficient allocation of bandwidth over communications networks.
NeoPhotonics maintains headquarters in San Jose, California and ISO
9001:2000 certified engineering and manufacturing facilities in Silicon
Valley (USA), Japan, Russia and China. For additional information visit www.neophotonics.com.
©2017 NeoPhotonics Corporation. All rights reserved.
NeoPhotonics and the red dot logo are trademarks of NeoPhotonics
Corporation. All other marks are the property of their respective owners.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
This press release includes statements that qualify as forward-looking
statements under the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements about the following
topics: future financial results, demand for the Company's high speed
products, the Company's market position and industry trends.
Forward-looking statements are subject to certain risks and
uncertainties that could cause the actual results to differ materially.
Those risks and uncertainties include, but are not limited to, such
factors as: the Company's reliance on a small number of customers for a
substantial portion of its revenues; ability of the Company to meet
customer demand; market growth in China and other key countries;
possible reduction in or volatility of customer orders or delays in
shipments of products to customers; timing of customer drawdowns of
vendor-managed inventory; possible disruptions in the supply chain or in
demand for the Company's products due to industry developments; the
ability of the Company's vendors and subcontractors to supply or
manufacture the Company's products in a timely manner; economic
conditions or natural disasters; volatility in utilization of
manufacturing operations, supporting utility services and other
manufacturing costs; reductions in the Company's rate of new design
wins, and/or the rate at which design wins go into production, and the
rate of customer acceptance of new product introductions; potential
pricing pressure that may arise from changing supply or demand
conditions in the industry; the impact of any previous or future
acquisitions or divestitures; challenges involving integration of
acquired businesses and utilization of acquired technology or
divestitures of assets and related product lines; the impact of the sale
of the low speed transceiver product lines and the discontinuance or end
of life of certain other products; market adoption, revenue growth and
margins of acquired products; changes in demand for the Company's
products; the impact of competitive products and pricing and alternative
technological advances; the accuracy of estimates used to prepare the
Company's financial statements and forecasts; the timely and successful
development and market acceptance of new products and upgrades to
existing products; the difficulty of predicting future cash needs; the
nature of other investment opportunities available to the Company from
time to time; the Company's operating cash flow; changes in economic and
industry projections; a decline in general conditions in the
telecommunications equipment industry or the world economy generally;
and the effects of seasonality. For further discussion of these risks
and uncertainties, please refer to the documents the Company files with
the SEC from time to time, including the Company's Annual Report on Form
10-K for the year ended December 31, 2015 and its Form 10-Q for the nine
months ended September 30, 2016. All forward-looking statements are made
as of the date of this press release, and the Company disclaims any duty
to update such statements.
Three Months Ended
Twelve Months Ended
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