Post Earnings Coverage as NeoPhotonics’ Q4 Top-line Surged 23% to a Record

Upcoming AWS Coverage on Kopin Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 27, 2017 / Active Wall St. announces its post-earnings coverage on NeoPhotonics Corp. (NYSE: NPTN). The Company disclosed its financial results for the fourth quarter fiscal 2017 (Q4 FY16) and full year fiscal 2017 (FY16) on March 14, 2017. The San Jose, California-based Company’s quarterly revenues increased $20.7 million, or 23% y-o-y, outperforming market consensus estimates. Register with us now for your free membership at:

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One of NeoPhotonics’ competitors within the Semiconductor – Broad Line space, Kopin Corp. (NASDAQ: KOPN), reported on March 13, 2017, its financial results for the fourth quarter and fiscal 2016 ended December 31, 2016. AWS will be initiating a research report on Kopin in the coming days.

Today, AWS is promoting its earnings coverage on NPTN; touching on KOPN. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

NeoPhotonics reported record revenues of $109.84 million in Q4 FY16, which came in above $89.12 million in Q4 FY15. Total revenue numbers for Q4 FY16 topped market forecasts of $108.5 million. Meanwhile, the Company’s Low Speed Transceiver Product revenue fell $12.4 million, or 49% y-o-y to $12.8 million in Q4 FY16.

The communications networks component maker’s GAAP net income came in at $2.00 million, or $0.04 per diluted share, in Q4 FY16 compared to $0.40 million, or $0.01 per diluted share, in Q4 FY15. Meanwhile, the Company reported non-GAAP net income of $6.29 million, or $0.13 per diluted share, in Q4 FY16 versus $6.92 million, or $0.16 per diluted share, in Q4 FY15. Wall Street had expected the Company to report non-GAAP net income of $0.13 per diluted share.

In FY16, NeoPhotonics’ revenues came in at $411.42 million compared to $339.44 million in the previous year. The Company reported GAAP net loss of $0.21 million, or $0.00 per diluted share, in FY16, against GAAP net income of $3.67 million, or $0.09 per diluted share, in FY15. Furthermore, the Company’s non-GAAP net income during FY16 was $23.04 million, or $0.50 per diluted share, compared to $21.06 million, or $0.53 per diluted share, in FY15.

Operating Metrics

In Q4 FY16, the Company’s GAAP gross profit improved to $31.03 million, or 28.3% of revenue, from $25.11 million, or 28.2% of revenue, in the year ago same period. Moreover, the Company’s non-GAAP gross profit for Q4 FY16 came in at $32.82 million, or 29.9% of revenue, compared to $28.87 million, or 32.4% of revenue, in Q4 FY15.

The Company spent $29.19 million as GAAP operating expenses in Q4 FY16 compared to $25.77 million in Q4 FY15. NeoPhotonics’ reported GAAP income of operations of $1.84 million in Q4 FY16 against GAAP loss from operation of $0.66 million in the prior year’s same period. Meanwhile, the Company reported non-GAAP operating income of $6.25 million in Q4 FY16 compared to $6.24 million in Q4 FY15. Furthermore, the Company’s adjusted EBITDA for the reported quarter was $12.46 million, or 11.3% of revenues, compared to $11.82 million, or 13.3% of revenues, in Q4 FY15.

Cash Flow and Balance Sheet

In twelve months ended December 31, 2016, net cash provided by the Company’s operating activities surged to $53.84 million from $26.14 million in FY15. As on December 31, 2016, the Company had cash and cash equivalents balance of $82.50 million compared to a balance of $76.09 million as on December 31, 2015. The Company reported long-term debt of $10.22 million in its books of accounts as on December 31, 2016, versus $10.76 million as on December 31, 2015.

Earnings Outlook

In its guidance for quarter ending March 31, 2017, NeoPhotonics’ expects revenues to be in the range of $67 million to $73 million. The Company anticipates Q1 FY17 GAAP gross margin in the range of $27% to 30%, while non-GAAP gross margin is projected to be in the range of 28% to 31%. Furthermore, the Company expects GAAP net loss during Q1 FY17 to be between $0.16 per share and $0.26 per share, whereas Q1 FY17 non-GAAP net loss is forecasted to be in the range of $0.20 per share to $0.30 per share.

Stock Performance

At the close of trading session on Friday, March 24, 2017, NeoPhotonics’ stock price climbed 5.35% to end the day at $9.26. A total volume of 1.13 million shares were exchanged during the session. The stock currently has a market cap of $374.84 million.

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