NeoPhotonics' 3Q12 revenues climb on coherent demand

The continuing demand for high-speed network products boosted revenues for NeoPhotonics Corp. (NYSE: NPTN) during its fiscal third quarter, ended September 30, 2012. The photonic integrated circuit (PIC) -based modules and subsystems developer saw revenue reach $66.2 million, up 5% from the previous quarter and just beyond the upper end of its previous guidance of $60 million to $66 million.

Nov 5th, 2012

The continuing demand for high-speed fiber-optic network products boosted revenues for NeoPhotonics Corp. (NYSE: NPTN) during its fiscal third quarter, ended September 30, 2012. The photonic integrated circuit (PIC) -based modules and subsystems developer saw revenue reach $66.2 million, up 5% from the previous quarter and just beyond the upper end of its previous guidance of $60 million to $66 million.

The revenue figure also exceeded that of the year-ago quarter by $23.3 million.

Gross margin was 31.2%, up from 24.8% in the previous quarter and 28.1% in the third quarter of 2011. Income from continuing operations was $0.7 million, up $4.4 million from the prior quarter’s loss of $3.7 million; 3Q11 saw a loss of $4.2 million.

“We are very pleased with our performance in the third quarter delivering 54% year-over-year revenue growth, and returning to profitability ahead of our initial projection schedule made at the time of the Santur acquisition,” said Tim Jenks, chairman, president, and CEO of NeoPhotonics in a press statement. “We experienced growth from several Western customers, notably in coherent and other high-speed products, where we have a breadth of design wins that propelled us to another record quarter.”

The growth in the company’s “speed and agility” products offset a sequential decline in NeoPhotonic’s access product line, Jenks told attendees on an analyst call last week.

Despite the good news, the company guided downward for the current quarter. Management predicted revenues will range from $58 million to $62 million, primarily due to “seasonality in the business.” Part of this entails the slowing of FTTx deployments during the winter months, which would affect access product sales.

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