NeoPhotonics Receives Strategic Investment from RUSNANO
NeoPhotonics Receives $39.8 Million in Gross Proceeds at $8.00 per
Share for Expansion in Russia and to Accelerate Adoption of High-Speed,
Agile and Coherent PIC Technologies
SAN JOSE, Calif.--(BUSINESS WIRE)--Apr. 30, 2012--
NeoPhotonics
Corporation (NYSE: NPTN) (the “Company”), a leading designer and
manufacturer of photonic integrated circuit, or PIC, based modules and
subsystems for bandwidth-intensive, high speed communications networks,
today announced that it has received an investment from RUSNANO,
a $10 billion sovereign investment corporation located in Moscow,
Russia. RUSNANO acquired 4.97 million newly-issued common shares of
NeoPhotonics Corporation in a private placement transaction at a price
of $8.00 per share for gross proceeds of $39.8 million. The Company’s
per share closing trading price on April 27, 2012, was $4.49. The shares
are restricted from resale pursuant to a lockup agreement for up to two
years, at the end of which the Company is obligated to register the
shares for potential resale. In connection with the investment, the
Company appointed Sergey Polikarpov, RUSNANO Managing Director, to the
board of directors.
“We are pleased to receive this strategic investment from RUSNANO,” said
Tim Jenks, Chairman, President and CEO of NeoPhotonics. “We welcomed
this investment as it aligns with our strategy to accelerate growth
globally, with particular emphasis on fast growing and emerging markets,
including in Russia and the CIS countries.”
“Not only are these markets deploying high speed, agile and
fiber-to-the-home networks but we are also seeing more of our customers
target service providers and invest locally in Russia and more broadly
in Eastern Europe,” continued Mr. Jenks. “We started to see and
investigate this growth opportunity several years ago, and we added
sales capability in the region and have since been engaged with and
supplying several customers in Russia. With the planned support from
RUSNANO, we believe that NeoPhotonics is well-positioned to capitalize
on new and greater opportunities in the region.”
“One of the unique advantages of NeoPhotonics is its
vertically-integrated design and manufacturing processes for photonic
integrated circuit-based products,” said Mr. Polikarpov. “The Company’s
planned research and production facilities in Russia are intended to be
able to perform a wide range of steps from PIC development to processing
and fabrication. We believe that with our support in Russia, we can
further enhance the Company’s development cycles and shorten the time
for broader adoption for NeoPhotonics products in Russia and the global
market.”
NeoPhotonics intends to use a portion of the net proceeds from the sale
of the shares of common stock for general corporate purposes as well as
to establish design and production capabilities in Russia for the
benefit of the global organization. The expansion in Russia is targeted
for completion by July 31, 2014, and is not expected to have a material
impact on the Company’s results of operations in 2012. The Company will
hold its quarterly financial results conference call on May 3, 2012, at
4:30 p.m. ET (1:30 pm PT).
About NeoPhotonics
NeoPhotonics is a leading designer and manufacturer of photonic
integrated circuit, or PIC, based modules and subsystems for
bandwidth-intensive, high-speed communications networks. The company’s
products enable cost-effective, high-speed data transmission and
efficient allocation of bandwidth over communications networks.
NeoPhotonics maintains headquarters in San Jose, California and ISO
9001:2000 certified engineering and manufacturing facilities in Silicon
Valley (USA) and Shenzhen, China. NeoPhotonics has been included in the
Russell 3000® Index since its reconstitution in June 2011.
For additional information, visit www.neophotonics.com.
About RUSNANO
RUSNANO was founded in March 2011 as an open joint stock company through
reorganization of state corporation Russian Corporation of
Nanotechnologies. RUSNANO’s mission is to develop the Russian
nanotechnology industry through co-investment in nanotechnology projects
with substantial economic potential or social benefit. The Government of
the Russian Federation owns 100 percent of the shares in RUSNANO.
Anatoly Chubais is CEO and chairman of the Executive Board of RUSNANO.
Work to establish nanotechnology infrastructure and training for
nanotechnology specialists, formerly conducted by the Russian
Corporation of Nanotechnologies, has been entrusted to the Fund for
Infrastructure and Educational Programs, a non-commercial fund also
established through reorganization of the Russian Corporation of
Nanotechnologies.
The statements from Mr. Jenks and Mr. Polikarpov in this press release
regarding the anticipated benefits of the transaction and the
opportunities for the Company and its products in Russia are
forward-looking statements. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual future events or results. These forward-looking
statements involve risks and uncertainties, as well as assumptions and
current expectations. The company’s actual results and the timing of
events could differ materially from those anticipated in such
forward-looking statements as a result of these risks, uncertainties and
assumptions. The risks and uncertainties that could cause the company’s
results to differ materially from those expressed or implied by such
forward-looking statements include but are not limited to: the
acceptance rate and timing by customers in Russia and other countries of
new product introductions; general conditions in the telecommunications
equipment industry in Russia or worldwide; general conditions in the
Russian political and economic environment; unanticipated delays in the
Company’s manufacturing and expansion plans; and other risks and
uncertainties described more fully in the company’s documents filed with
or furnished to the Securities and Exchange Commission. More information
about risks that may impact the company’s business is set forth in the
“Risk Factors” section of the company’s Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 30, 2012. All
forward-looking statements in this press release are based on
information available to NeoPhotonics as of the date hereof and
qualified in their entirety by this cautionary statement, and
NeoPhotonics assumes no obligation to revise or update these
forward-looking statements.
Source: NeoPhotonics Corporation
LouVan Communications Inc. Michael Newsom, +1 508-541-9036
