NeoPhotonics reports revenue record

Paced by the demand for its optical components and subsystems for 40-Gbps and 100-Gbps applications, NeoPhotonics Corp. (NYSE: NPTN) announced August 8 that revenues for the second quarter ended June 30, 2013 came in at $75 million, a record.

The quarter’s $75 million represented an $18.9 million (34%) sequential improvement and $12 million (19%) uptick from 2Q12. However, gross margin of 20.2% represented a retreat from the first quarter’s 20.9% and the year-ago quarter’s 24.1%. NeoPhotonics lay the blame for this at the feat of a $2.5 million charge to cost of goods sold related to the one-time step-up in the fair value of assets acquired from LAPIS Semiconductor (see “NeoPhotonics closes LAPIS Semiconductor Optical Business Unit acquisition”). Non-GAAP gross margin was 25.0%, up from 23.1% in the first quarter but off from the 25.8% seen in the same quarter of 2012.

The company lost $9.5 million ($0.31 per share) during the quarter, which was better than $10.5 million ($0.34 per share) it lost in the prior quarter. However, the loss was greater than that of the $3.7 million ($0.13 per share) loss of the second quarter of 2012. Looking from a non-GAAP perspective, NeoPhotonics lost $3.5 million ($0.11 per share) during the quarter, again better than the loss of $4.4 million in the prior quarter but worse than the $1.7 million loss of 2Q12.

“NeoPhotonics continues to be a solid leader in 100G optical products for next-generation networks, with our portfolio of products once again driving record quarterly revenue,” said Tim Jenks, chairman, president, and CEO of NeoPhotonics, in a prepared statement. “Further, we are pleased with our integration of the acquisition of the optical component unit of LAPIS Semiconductor, which closed on March 29, 2013, and is now referred to as NeoPhotonics Semiconductor. The NeoPhotonics Semiconductor product portfolio includes several products used in 100G networks, and added approximately 20% to our 40/100G revenue in the second quarter.”

Looking ahead to the third quarter of 2013, NeoPhotonics management expects revenue to range from $72 million to $78 million. This is expected to translate into a non-GAAP gross margin in the range of 24% to 28%. Diluted loss per share from continuing operations should range between $0.21 and $0.31; on a non-GAAP basis, the range changes to a loss of $0.04 to $0.14 per share.

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