NeoPhotonics Announces Flat Q2 Earnings
SAN JOSE, Calif., Aug. 31, 2016 — Optoelectronic developer NeoPhotonics Corp. has announced flat second quarter earnings, comparable to those from the first quarter, with an increase in revenue of $13.8 million to $99.1 million , or 16.1 percent, compared to the same quarter last year.
“Globally, we continue to see the overall environment for 100G and beyond products very robust across both telecom and datacenter applications,” said Tim Jenks, chairman and CEO of NeoPhotonics. “In spite of PON [passive optical network) market softness, we delivered solid financial results in the second quarter including strong profitability at 15 cents per share and cash generation of approximately $10 million. We are accelerating our high-speed product growth and we have announced the end of life of our declining and lower margin PON products.”
GAAP Gross margin was 27.8 percent, down from 30.6 percent in the second quarter of 2015, and down from 31.4 percent in the prior quarter. Non-GAAP Gross margin was 29.3 percent, down from 32.3 percent in the second quarter of 2015, and down from 32.8 percent in the prior quarter.
“We are experiencing an unprecedented level of demand for our 100G products, which we’re seeing as a major and sustaining mid-term trend in China as well as in the West,” Jenks said. “Given these industry trends and our strong market position, we are raising and narrowing our expected revenue growth for 2016 to a range of 22 to 25 percent.”
NeoPhotonics is a designer and manufacturer of advanced hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks.