NeoPhotonics Reports Third Quarter 2018 Financial Results
Summary
SAN JOSE, Calif.--( BUSINESS WIRE )--NeoPhotonics Corporation (NYSE: NPTN), a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and data center applications, today announced financial results for its third quarter ended September 30, 2018.“With continued strength in demand in the third quarter, combined with increasing volume growth across various product lines, we achieved gross margin expansion of nearly 400bps,” said Tim Jenks, NeoPhotonics Chairman and CEO.NeoPhotonics is a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications.NeoPhotonics maintains headquarters in San Jose, California and ISO 9001:2000 certified engineering and manufacturing facilities in Silicon Valley (USA), Japan and China.Revenue $ 81,748 $ 81,102 $ 71,121 $ 231,436 $ 216,023 Cost of goods sold (1) 62,815 65,630 60,608 187,849 170,230 Gross profit 18,933 15,472 10,513 43,587 45,793 Gross margin23.2%19.1%14.8%18.8%21.2% Operating expenses: Research and development (1) 13,177 13,243 14,662 40,308 44,412 Sales and marketing (1) 4,351 3,891 4,071 12,366 12,913 General and administrative (1) 8,592 7,267 7,637 23,509 26,792 Amortization of purchased intangible assets 118 120 119 357 355 Asset sale related costs 251 79 78 344 229 Restructuring charges 1,133 622 2,829 1,786 3,550 Gain on asset sale - - - - (2,000 ) Total operating expenses 27,622 25,222 29,396 78,670 86,251 Loss from operations (8,689 ) (9,750 ) (18,883 ) (35,083 ) (40,458 ) Interest income 85 122 37 300 141 Interest expense (540 ) (759 ) (495 ) (2,007 ) (743 ) Other income (expense), net 1,310 930 (41 ) 1,891 197 Total interest and other income (expense), net 855 293 (499 ) 184 (405 ) Loss before income taxes (7,834 ) (9,457 ) (19,382 ) (34,899 ) (40,863 ) Income tax (provision) benefit (291 ) (1,080 ) 1,195 (2,009 ) 1,813 Net loss $ (8,125 ) $ (10,537 ) $ (18,187 ) $ (36,908 ) $ (39,050 ) Basic net loss per share $ (0.18 ) $ (0.24 ) $ (0.42 ) $ (0.82 ) $ (0.90 ) Diluted net loss per share $ (0.18 ) $ (0.24 ) $ (0.42 ) $ (0.82 ) $ (0.90 ) Weighted average shares used to compute basic net loss per share 45,476 44,665 43,790 44,804 43,212 Weighted average shares used to compute diluted net loss per share 45,476 44,665 43,790 44,804 43,212 (1) Includes stock-based compensation expense as follows for the periods presented: Cost of goods sold $ 553 $ 629 $ 340 $ 1,832 $ 811 Research and development 1,016 829 606 2,618 1,779 Sales and marketing 931 642 393 2,511 1,170 General and administrative 1,541 1,039 595 3,566 1,932 Total stock-based compensation expense $ 4,041 $ 3,139 $ 1,934 $ 10,527 $ 5,692 NeoPhotonics Corporation