“We are very pleased with our fiscal 2012 results, particularly with our
ability to continue to grow revenue at an accelerated rate of 22%
year-over-year, and reach a new record for total annual revenue,” said
Highlights for the
Total cash, cash equivalents and short-term investments was
Highlights for 2012
A reconciliation of GAAP financial measures to Non-GAAP financial measures is attached to this press release. See “Use of Non-GAAP Financial Information” below for a description of these Non-GAAP financial measures.
Outlook for the Quarter Ending
The company’s current expectations for the first quarter 2013 are:
The outlook for the first quarter of 2013 excludes the results of
operations from LAPIS OCU as the transaction is not yet closed. The
Non-GAAP outlook for the first quarter of 2013 excludes the expected
amortization of intangibles and other assets of approximately
The company’s current expectations for the full year of 2013 are for revenue growth in the range of 8% to 10% over 2012, and assuming that level of growth, profitability on a full year non-GAAP basis.
In connection with the announced acquisition of LAPIS OCU, which is not
a standalone company and has historically not prepared separate
financial statements, audited financial information for the business
unit is not yet available. Based on preliminary unaudited pro forma
financial information provided by management of LAPIS Semiconductor, OCU
had revenue of approximately
Conference Call
The company will discuss these financial results in a conference call at
About
NeoPhotonics is a leading designer and manufacturer of photonic
integrated circuit, or PIC, based optoelectronic modules and subsystems
for bandwidth-intensive, high-speed communications networks including
coherent 100G data rates. 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,
© 2013 NeoPhotonics Corporation. All rights reserved. NeoPhotonics and the red dot logo are trademarks of NeoPhotonics Corporation.
Forward Looking Statements
The statements in this press release under the heading “Outlook for the
Quarter Ending
Use of Non-GAAP Financial Information
The company provides Non-GAAP gross margin, Non-GAAP net income (loss) from continuing operations, Non-GAAP diluted net income (loss) per share and adjusted EBITDA, as supplemental information. In computing certain of these Non-GAAP financial measures, the company excludes certain items included under GAAP, including stock-based compensation expense, amortization of purchased intangible assets, amortization of acquisition-related fixed asset and inventory step-ups, acquisition-related costs, gain on sale of shares of an unconsolidated investee, net of direct cost, restructuring charges, fair value adjustment to contingent consideration, goodwill impairment charge, and the related tax effects of Non-GAAP adjustments. In computing adjusted EBITDA, the company also excludes interest (income) expense, net, provision for (benefit from) income taxes and depreciation expense.
Management uses these Non-GAAP financial measures to evaluate the operating performance of the business and aid in the period-to-period comparability. Management also uses the Non-GAAP financial measures for planning and forecasting and measuring results against its forecast. Using several measures to evaluate the business allows the company and investors to assess the company’s relative performance and ultimately monitor the company’s capacity to generate returns for its stockholders. The Non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the company’s industry, as other companies may calculate such financial results differently. The company’s Non-GAAP financial measures are not measurements of financial performance under GAAP, and should not be considered as alternatives to the financial measures derived in accordance with GAAP. The company does not consider these Non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion of this press release.
NeoPhotonics Corporation | ||||||||||||||||||||
Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||
(In thousands, except percentages, share and per share data) | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
Dec. 31, |
Sep. 30, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
||||||||||||||||
Revenue | $ | 62,023 | $ | 66,152 | $ | 57,183 | $ | 245,423 | $ | 201,029 | ||||||||||
Cost of goods sold (1) | 47,973 | 45,536 | 44,909 | 184,163 | 150,944 | |||||||||||||||
Gross profit | 14,050 | 20,616 | 12,274 | 61,260 | 50,085 | |||||||||||||||
22.7 | % | 31.2 | % | 21.5 | % | 25.0 | % | 24.9 | % | |||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development (1) | 8,535 | 9,893 | 11,039 | 38,288 | 30,855 | |||||||||||||||
Sales and marketing (1) | 3,458 | 3,354 | 3,368 | 13,241 | 11,686 | |||||||||||||||
General and administrative (1) | 5,351 | 6,770 | 7,287 | 25,808 | 21,900 | |||||||||||||||
Amortization of purchased intangible assets | 320 | 321 | 326 | 1,316 | 994 | |||||||||||||||
Adjustment to fair value of contingent consideration | (308 | ) | (850 | ) | (1,287 | ) | (554 | ) | (1,287 | ) | ||||||||||
Goodwill impairment charges | - | - | 13,106 | - | 13,106 | |||||||||||||||
Restructuring charges | (91 | ) | - | 1,297 | 68 | 1,297 | ||||||||||||||
Total operating expenses | 17,265 | 19,488 | 35,136 | 78,167 | 78,551 | |||||||||||||||
Income (loss) from operations | (3,215 | ) | 1,128 | (22,862 | ) | (16,907 | ) | (28,466 | ) | |||||||||||
Interest income | 168 | 147 | 253 | 592 | 407 | |||||||||||||||
Interest expense | (134 | ) | (135 | ) | (192 | ) | (568 | ) | (422 | ) | ||||||||||
Other income (expense), net | 696 | 154 | (53 | ) | 575 | 14,246 | ||||||||||||||
Total interest and other income (expense), net | 730 | 166 | 8 | 599 | 14,231 | |||||||||||||||
Income (loss) before income taxes | (2,485 | ) | 1,294 | (22,854 | ) | (16,308 | ) | (14,235 | ) | |||||||||||
Benefit from (provision for) income taxes | (476 | ) | (571 | ) | 22 | (1,364 | ) | (1,155 | ) | |||||||||||
Income (loss) from continuing operations | (2,961 | ) | 723 | (22,832 | ) | (17,672 | ) | (15,390 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (28 | ) | - | 523 | 142 | 636 | ||||||||||||||
Net income (loss) | (2,989 | ) | 723 | (22,309 | ) | (17,530 | ) | (14,754 | ) | |||||||||||
Deemed dividend on beneficial conversion of Series X redeemable convertible preferred stock | - | - | - | - | (17,049 | ) | ||||||||||||||
Accretion of redeemable convertible preferred stock | - | - | - | - | (7 | ) | ||||||||||||||
Net income (loss) attributable to NeoPhotonics Corporation common stockholders | $ | (2,989 | ) | $ | 723 | $ | (22,309 | ) | $ | (17,530 | ) | $ | (31,810 | ) | ||||||
Net income (loss) per share - Basic: | ||||||||||||||||||||
Continuing operations | $ | (0.10 | ) | $ | 0.02 | $ | (0.92 | ) | $ | (0.62 | ) | $ | (1.45 | ) | ||||||
Discontinued operations | $ | (0.00 | ) | $ | - | $ | 0.02 | $ | 0.00 | $ | 0.03 | |||||||||
Net income (loss) | $ | (0.10 | ) | $ | 0.02 | $ | (0.90 | ) | $ | (0.62 | ) | $ | (1.42 | ) | ||||||
Net income (loss) per share - Diluted: | ||||||||||||||||||||
Continuing operations | $ | (0.10 | ) | $ | 0.02 | $ | (0.92 | ) | $ | (0.62 | ) | $ | (1.45 | ) | ||||||
Discontinued operations | $ | (0.00 | ) | $ | - | $ | 0.02 | $ | 0.00 | $ | 0.03 | |||||||||
Net income (loss) | $ | (0.10 | ) | $ | 0.02 | $ | (0.90 | ) | $ | (0.62 | ) | $ | (1.42 | ) | ||||||
Weighted average shares used to compute net income (loss) per share: | ||||||||||||||||||||
Basic | 30,414,735 | 30,215,144 | 24,807,478 | 28,529,849 | 22,359,802 | |||||||||||||||
Diluted | 30,414,735 | 30,611,304 | 24,807,478 | 28,529,849 | 22,359,802 | |||||||||||||||
(1) Includes stock-based compensation expense (credit) as follows for the periods presented: | ||||||||||||||||||||
Cost of goods sold | $ | 248 | $ | 228 | $ | 120 | $ | 800 | $ | 503 | ||||||||||
Research and development | 475 | 404 | 256 | 1,743 | 1,033 | |||||||||||||||
Sales and marketing | 279 | 242 | 145 | 935 | 647 | |||||||||||||||
General and administrative | 341 | 408 | 219 | 1,299 | 925 | |||||||||||||||
Total stock-based compensation expense | $ | 1,343 | $ | 1,282 | $ | 740 | $ | 4,777 | $ | 3,108 | ||||||||||
NeoPhotonics Corporation | ||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||
(In thousands) | ||||||||
As of | ||||||||
Dec. 31, |
Dec. 31, |
|||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 101,241 | $ | 86,384 | ||||
Restricted cash | 2,626 | 3,227 | ||||||
Accounts receivable, net | 70,354 | 68,877 | ||||||
Inventories | 43,793 | 35,341 | ||||||
Prepaid expenses and other current assets | 7,701 | 5,882 | ||||||
Current assets held-for-sale | - | 1,687 | ||||||
Total current assets | 225,715 | 201,398 | ||||||
Long-term investments | 188 | 92 | ||||||
Property, plant and equipment, net | 54,440 | 56,344 | ||||||
Other intangible assets, net | 14,213 | 17,999 | ||||||
Other long-term assets | 1,076 | 1,049 | ||||||
Long-term assets held-for-sale | - | 167 | ||||||
Total assets | $ | 295,632 | $ | 277,049 | ||||
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 36,308 | $ | 37,599 | ||||
Notes payable | 12,003 | 14,620 | ||||||
Current portion of long-term debt | 5,000 | 5,000 | ||||||
Accrued and other current liabilities | 19,959 | 18,299 | ||||||
Current liabilities held-for-sale | - | 1,681 | ||||||
Total current liabilities | 73,270 | 77,199 | ||||||
Long-term debt, net of current portion | 17,167 | 22,166 | ||||||
Deferred income tax liabilities | 653 | 927 | ||||||
Other noncurrent liabilities | 1,724 | 3,103 | ||||||
Total liabilities | 92,814 | 103,395 | ||||||
Redeemable common stock | 5,000 | - | ||||||
Stockholders' equity: | ||||||||
Common stock | 76 | 62 | ||||||
Additional paid-in capital | 433,996 | 392,792 | ||||||
Accumulated other comprehensive income | 11,829 | 11,353 | ||||||
Accumulated deficit | (248,083 | ) | (230,553 | ) | ||||
Total stockholders' equity | 197,818 | 173,654 | ||||||
Total liabilities, redeemable common stock and stockholders' equity | $ | 295,632 | $ | 277,049 | ||||
NeoPhotonics Corporation | ||||||||||||||||||||
Reconciliation of Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
(In thousands, except percentages, share and per share data) | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||||||||||||||||
NON-GAAP GROSS PROFIT: | ||||||||||||||||||||
GAAP gross profit | $ | 14,050 | $ | 20,616 | $ | 12,274 | $ | 61,260 | $ | 50,085 | ||||||||||
Stock-based compensation expense | 248 | 228 | 120 | 800 | 503 | |||||||||||||||
Amortization of purchased intangible assets | 642 | 616 | 532 | 2,472 | 598 | |||||||||||||||
Amortization of acquisition-related fixed asset step-up | 225 | 243 | 292 | 1,512 | 292 | |||||||||||||||
Amortization of acquisition-related inventory step-up | - | - | 215 | - | 215 | |||||||||||||||
Acquisition-related costs | 50 | 40 | 12 | 148 | 12 | |||||||||||||||
Non-GAAP gross profit | $ | 15,215 | $ | 21,743 | $ | 13,445 | $ | 66,192 | $ | 51,705 | ||||||||||
Non-GAAP gross margin (% of revenue) | 24.5 | % | 32.9 | % | 23.5 | % | 27.0 | % | 25.7 | % | ||||||||||
NON-GAAP INCOME (LOSS) FROM CONTINUING OPERATIONS: | ||||||||||||||||||||
GAAP income (loss) from continuing operations | $ | (2,961 | ) | $ | 723 | $ | (22,832 | ) | $ | (17,672 | ) | $ | (15,390 | ) | ||||||
Stock-based compensation expense | 1,343 | 1,282 | 740 | 4,777 | 3,108 | |||||||||||||||
Amortization of purchased intangible assets | 963 | 937 | 858 | 3,788 | 1,592 | |||||||||||||||
Amortization of acquisition-related fixed asset step-up | 356 | 386 | 427 | 2,480 | 427 | |||||||||||||||
Amortization of acquisition-related inventory step-up | - | - | 215 | - | 215 | |||||||||||||||
Acquisition-related costs | 629 | 240 | 1,089 | 2,648 | 1,426 | |||||||||||||||
Gain on sale of shares of an unconsolidated investee, net of direct cost | - | - | - | - | (13,829 | ) | ||||||||||||||
Restructuring charges | (91 | ) | 2 | 1,297 | 68 | 1,297 | ||||||||||||||
Fair value adjustment to contingent consideration | (308 | ) | (850 | ) | (1,287 | ) | (554 | ) | (1,287 | ) | ||||||||||
Goodwill impairment charge | - | - | 13,106 | - | 13,106 | |||||||||||||||
Income tax effect of Non-GAAP adjustments | (56 | ) | (67 | ) | (6 | ) | (202 | ) | (227 | ) | ||||||||||
Non-GAAP income (loss) from continuing operations | $ | (125 | ) | $ | 2,653 | $ | (6,393 | ) | $ | (4,667 | ) | $ | (9,562 | ) | ||||||
ADJUSTED EBITDA: | ||||||||||||||||||||
GAAP income (loss) from continuing operations | $ | (2,961 | ) | $ | 723 | $ | (22,832 | ) | $ | (17,672 | ) | $ | (15,390 | ) | ||||||
Stock-based compensation expense | 1,343 | 1,282 | 740 | 4,777 | 3,108 | |||||||||||||||
Amortization of purchased intangible assets | 963 | 937 | 858 | 3,788 | 1,592 | |||||||||||||||
Amortization of acquisition-related fixed asset step-up | 356 | 386 | 427 | 2,480 | 427 | |||||||||||||||
Amortization of acquisition-related inventory step-up | - | - | 215 | - | 215 | |||||||||||||||
Acquisition-related costs | 629 | 240 | 1,089 | 2,648 | 1,426 | |||||||||||||||
Gain on sale of shares of an unconsolidated investee, net of direct cost | - | - | - | - | (13,829 | ) | ||||||||||||||
Restructuring charges | (91 | ) | 2 | 1,297 | 68 | 1,297 | ||||||||||||||
Fair value adjustment to contingent consideration | (308 | ) | (850 | ) | (1,287 | ) | (554 | ) | (1,287 | ) | ||||||||||
Goodwill impairment charge | - | - | 13,106 | - | 13,106 | |||||||||||||||
Interest (income) expense, net | (34 | ) | (12 | ) | (61 | ) | (24 | ) | 15 | |||||||||||
Provision for (benefit from) income taxes | 476 | 571 | (22 | ) | 1,364 | 1,155 | ||||||||||||||
Depreciation expense | 3,095 | 3,151 | 3,470 | 12,444 | 10,844 | |||||||||||||||
Adjusted EBITDA | $ | 3,468 | $ | 6,430 | $ | (3,000 | ) | $ | 9,319 | $ | 2,679 | |||||||||
NON-GAAP DILUTED INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||
GAAP diluted income (loss) per share from continuing operations | $ | (0.10 | ) | $ | 0.02 | $ | (0.92 | ) | $ | (0.62 | ) | $ | (1.45 | ) | ||||||
Non-GAAP diluted income (loss) per share from continuing operations | $ | (0.00 | ) | $ | 0.08 | $ | (0.26 | ) | $ | (0.16 | ) | $ | (0.40 | ) | ||||||
SHARES USED TO COMPUTE NON-GAAP DILUTED INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||
Shares used to compute GAAP diluted income (loss) per share from continuing operations | 30,414,735 | 30,611,304 | 24,807,478 | 28,529,849 | 22,359,802 | |||||||||||||||
Shares used to compute non-GAAP diluted income (loss) per share from continuing operations | 30,414,735 | 31,393,431 | 24,807,478 | 28,529,849 | 24,027,658 |
Source:
JD Fay, Chief Financial Officer
NeoPhotonics Corporation
408-895-6086
or
Erica
Mannion, Investor Relations
Sapphire Investor Relations, LLC
415-471-2700
ir@neophotonics.com