NeoPhotonics completes low speed transceiver business sale to APAT Optoelectronics

NeoPhotonics (NYSE:NPTN) says it has executed its previously announced agreement to sell its Access and Low Speed transceiver product lines (collectively known as the "Low Speed Business") to APAT Optoelectronics Components Co., Ltd. of Shenzhen, China. The company received approximately $26.4 million for the now former assets (see "NeoPhotonics agrees to sell FTTH, lower-speed optical transceiver lines to APAT Optoelectronics").

The divested lines primarily comprised optical transceivers for fiber to the home (FTTH) applications and optical modules for telecom, bidirectional, and specialty applications at 10 Gbps and below. In 2015 and for the first nine months of 2016, the Low Speed Business generated $92.8 million and $50.7 million in revenue, respectively, and gross profit of $17.1 million and $9.7 million, respectively. Net assets for the business were approximately $17.0 million as of September 30, 2016.

"We are pleased to complete the sale of our Low Speed Business," said Tim Jenks, NeoPhotonics' CEO. "This transaction further solidifies our focus on serving the highest speed, highest performance and highest growth segments in the optical communications market where we believe our vertically integrated advanced hybrid photonic integration technology will have the greatest impact."

APAT OE designs and manufactures optical subassemblies for telecom and datacom markets.

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