13 May 2013

NeoPhotonics’ revenue falls 9.6% to $56.1m in Q1, but 100G grows 41%

For first-quarter 2013, NeoPhotonics Corp of San Jose, CA, a vertically integrated designer and manufacturer of both indium phosphide (InP) and silica-on-silicon photonic integrated circuit (PIC)-based modules and subsystems for bandwidth-intensive, high-speed communications networks, has reported revenue of $56.1m, down 9.6% on $62m last quarter but up 3.4% on $54.2m a year ago (and above the expected $50-55m).

On a non-GAAP, gross margin was 23.1%, down from 24.5% last quarter and 23.9% a year ago. Loss from continuing operations was $4.4m ($0.14 per diluted share), up from just $0.1m ($0.00 per diluted share) last quarter but an improvement on $5.4m ($0.22 per diluted share) a year ago. Adjusted EBITDA was a loss of $1.7m, down from income of $3.5m last quarter but an improvement on a loss of $2.4m a year ago.

On 29 March, NeoPhotonics completed the acquisition of LAPIS Optical Components Unit (OCU), a designer and manufacturer of high-speed lasers, laser drivers, photodiodes and amplifiers for high-speed networks, which included the business, a portfolio of more than 150 patents and patents applications, the associated real estate and high-speed semiconductor, laser and detector fabrication facility.

During the quarter, total cash, cash equivalents and short-term investments fell from $101.2m to $99.8m. Also, bank debt almost doubled, from $22.2m to $40m, as the firm amended and restated its loan agreement to finance the acquisition of LAPIS OCU. In connection with the acquisition, NeoPhotonics also agreed to pay the seller about $11.1m in Japanese Yen for the purchase of the real estate used by the acquired business in three equal installments on the first, second and third anniversaries of the closing date.

“We are pleased with the success we are experiencing in our portfolio of 100G products for telecom and datacom applications, which grew approximately 41% quarter-on-quarter and are poised for further growth as the 100G upgrade cycle continues,” says chairman, president & CEO Tim Jenks. “Moreover, our recent acquisition of the optical components unit of LAPIS Semiconductor, now called NeoPhotonics Semiconductor, is expected to further strengthen our technology leadership and market opportunity in the 100G upgrade cycle as carriers seek to satisfy growing customer demand for high-speed connectivity to drive mobile video and other bandwidth-intensive enterprise applications,” he adds.

For second-quarter 2013, NeoPhotonics expects revenue to rebound to $70-75m. Non-GAAP gross margin should be 21-25%, and loss per diluted share is expected to be $0.08-0.18 (excluding the expected amortization of intangibles and other assets, including relating to the acquisition of LAPIS OCU, of about $1.4m, and the anticipated impact of stock-based compensation of $1.1m related to cost of goods sold).

See related items:

NeoPhotonics reports 22% annual revenue growth to record $245.4m

NeoPhotonics to acquire LAPIS semiconductor’s optical components business unit

NeoPhotonics reports Q3 revenue of a record $66.2m, up 54% year-on-year

NeoPhotonics reports higher-than-expected record revenue in Q2

NeoPhotonics’ revenue grows 8% year-on-year in Q1

Tags: NeoPhotonics PICs

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