“We are pleased to note the growing momentum behind global 100G
deployments, notably in
Fourth Quarter Summary
Following is a summary of certain key financial measures for the fourth quarter of 2013.
At
Annual Summary
Following is a summary of certain key financial measures for 2013.
Non-GAAP and Adjusted EBITDA measures vs. GAAP Financial Measures
Our Non-GAAP and Adjusted EBITDA measures exclude certain GAAP financial measures, and a reconciliation of the Non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release.
Updated Outlook for the First Quarter of 2014 Ending
The Company’s updated outlook for the first quarter of 2014 is:
The Company did not provide expectations previously on Non-GAAP gross margin, on diluted net loss per share, or on diluted Non-GAAP net loss per share.
The Non-GAAP outlook for the first quarter of 2014 excludes
approximately
Outlook for the Quarter Ending
The Company’s outlook for the second quarter of 2014 is:
Conference Call
The Company will host a conference call today,
A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes statements that qualify as forward-looking
statements under the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements about the following
topics: future financial results, and the nature and extent of
macro-economic and industry trends. Forward-looking statements are
subject to certain risks and uncertainties that could cause the actual
results to differ materially. Those risks and uncertainties include, but
are not limited to, such factors as: possible reduction in or volatility
of customer orders or delays in shipments of products to customers;
subsequent events, timing of customer drawdowns of vendor-managed
inventory; possible disruptions in the supply chain or in demand for the
Company’s products due to industry developments, the ability of the
Company's vendors and subcontractors to supply or manufacture the
Company's products in a timely manner; economic conditions or natural
disasters; volatility in utilization of manufacturing operations and
other manufacturing costs; reductions in the Company’s rate of new
design wins, and/or the rate at which design wins go into production,
and the rate of customer acceptance of new product introductions; the
Company’s reliance on a small number of customers for a substantial
portion of its revenues; potential pricing pressure that may arise from
changing supply or demand conditions in the industry; the impact of any
previous or future acquisitions; challenges involving integration of
acquired businesses and utilization of acquired technology, the
© 2014
NeoPhotonics Corporation | ||||||||||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
Dec. 31, 2013 | Sep 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash, cash equivalents and short-term investments | $ | 75,017 | $ | 70,564 | $ | 101,241 | ||||||||||||||||
Accounts receivable, net | 64,533 | 78,898 | 70,354 | |||||||||||||||||||
Inventories | 64,908 | 63,687 | 43,793 | |||||||||||||||||||
Prepaid expenses and other current assets | 12,115 | 10,285 | 10,256 | |||||||||||||||||||
Total current assets | 216,573 | 223,434 | 225,644 | |||||||||||||||||||
Property, plant and equipment, net | 68,851 | 70,818 | 54,440 | |||||||||||||||||||
Purchased intangible assets, net | 15,005 | 16,309 | 14,213 | |||||||||||||||||||
Other long-term assets | 1,798 | 1,836 | 1,335 | |||||||||||||||||||
Total assets | $ | 302,227 | $ | 312,397 | $ | 295,632 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 72,212 | $ | 78,879 | $ | 56,267 | ||||||||||||||||
Notes payable | 9,738 | 7,954 | 12,003 | |||||||||||||||||||
Current portion of long-term debt | 10,325 | 10,570 | 5,000 | |||||||||||||||||||
Total current liabilities | 92,275 | 97,403 | 73,270 | |||||||||||||||||||
Long-term debt, net of current portion | 24,150 | 26,390 | 17,167 | |||||||||||||||||||
Other noncurrent liabilities | 8,991 | 8,772 | 2,515 | |||||||||||||||||||
Total liabilities | 125,416 | 132,565 | 92,952 | |||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||||||
Common stock | 79 | 78 | 76 | |||||||||||||||||||
Additional paid-in capital | 447,467 | 444,552 | 438,858 | |||||||||||||||||||
Accumulated other comprehensive income | 11,687 | 13,172 | 11,829 | |||||||||||||||||||
Accumulated deficit | (282,422 | ) | (277,970 | ) | (248,083 | ) | ||||||||||||||||
Total stockholders' equity | 176,811 | 179,832 | 202,680 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 302,227 | $ | 312,397 | $ | 295,632 |
NeoPhotonics Corporation | |||||||||||||||||||||||||||||||||
Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||||||
(In thousands, except percentages, share and per share data) | |||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||
Revenue | $ | 74,375 | $ | 76,814 | $ | 62,023 | $ | 282,242 | $ | 245,423 | |||||||||||||||||||||||
Cost of goods sold (1) | 54,739 | 58,635 | 47,973 | 217,069 | 184,163 | ||||||||||||||||||||||||||||
Gross profit | 19,636 | 18,179 | 14,050 | 65,173 | 61,260 | ||||||||||||||||||||||||||||
26.4 | % | 23.7 | % | 22.7 | % | 23.1 | % | 25.0 | % | ||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Research and development (1) | 12,832 | 12,227 | 8,535 | 45,853 | 38,288 | ||||||||||||||||||||||||||||
Sales and marketing (1) | 3,727 | 3,580 | 3,458 | 14,242 | 13,241 | ||||||||||||||||||||||||||||
General and administrative (1) | 8,159 | 8,905 | 4,814 | 30,012 | 24,361 | ||||||||||||||||||||||||||||
Adjustment to fair value of contingent consideration | - | 1,026 | (308 | ) | 1,026 | (554 | ) | ||||||||||||||||||||||||||
Amortization of purchased intangible assets | 404 | 381 | 320 | 1,532 | 1,316 | ||||||||||||||||||||||||||||
Restructuring charges | - | 450 | (91 | ) | 775 | 68 | |||||||||||||||||||||||||||
Acquisition- related transaction costs | 89 | 126 | 537 | 5,406 | 1,447 | ||||||||||||||||||||||||||||
Total operating expenses | 25,211 | 26,695 | 17,265 | 98,846 | 78,167 | ||||||||||||||||||||||||||||
Loss from operations | (5,575 | ) | (8,516 | ) | (3,215 | ) | (33,673 | ) | (16,907 | ) | |||||||||||||||||||||||
Interest income | 79 | 66 | 168 | 348 | 592 | ||||||||||||||||||||||||||||
Interest expense | (240 | ) | (251 | ) | (134 | ) | (996 | ) | (568 | ) | |||||||||||||||||||||||
Other income (expense), net | 1,618 | 115 | 696 | 1,186 | 575 | ||||||||||||||||||||||||||||
Total interest and other income (expense), net | 1,457 | (70 | ) | 730 | 538 | 599 | |||||||||||||||||||||||||||
Loss before income taxes | (4,118 | ) | (8,586 | ) | (2,485 | ) | (33,135 | ) | (16,308 | ) | |||||||||||||||||||||||
Provision for income taxes | (334 | ) | (777 | ) | (476 | ) | (1,204 | ) | (1,364 | ) | |||||||||||||||||||||||
Loss from continuing operations | (4,452 | ) | (9,363 | ) | (2,961 | ) | (34,339 | ) | (17,672 | ) | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | - | (28 | ) | - | 142 | |||||||||||||||||||||||||||
Net loss | (4,452 | ) | (9,363 | ) | (2,989 | ) | (34,339 | ) | (17,530 | ) | |||||||||||||||||||||||
Basic and diluted net loss per share: | |||||||||||||||||||||||||||||||||
Continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.10 | ) | $ | (1.11 | ) | $ | (0.62 | ) | ||||||||||||||||||
Discontinued operations | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||
Net loss | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.10 | ) | $ | (1.11 | ) | $ | (0.62 | ) | ||||||||||||||||||
Weighted averages shares used to compute net loss per share: | |||||||||||||||||||||||||||||||||
Basic | 31,450,916 | 31,184,958 | 30,414,735 | 31,000,325 | 28,529,849 | ||||||||||||||||||||||||||||
Diluted | 31,450,916 | 31,184,958 | 30,414,735 | 31,000,325 | 28,529,849 | ||||||||||||||||||||||||||||
(1 | ) | Includes stock-based compensation expense as follows for the periods presented: | |||||||||||||||||||||||||||||||
Cost of goods sold | $ | 79 | $ | 471 | $ | 247 | $ | 924 | $ | 800 | |||||||||||||||||||||||
Research and development | 625 | 417 | 476 | 2,060 | 1,744 | ||||||||||||||||||||||||||||
Sales and marketing | 332 | 253 | 278 | 1,167 | 934 | ||||||||||||||||||||||||||||
General and administrative | 435 | 449 | 341 | 1,585 | 1,299 | ||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 1,471 | $ | 1,590 | $ | 1,342 | $ | 5,736 | $ | 4,777 |
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 | |||||||||||||||||||||||||||||||
Dec. 31, 2013 |
Sep. 30, 2013 |
Dec. 31, 2012 |
Dec. 31, 2013 |
Dec. 31, 2012 | ||||||||||||||||||||||||||||
NON-GAAP GROSS PROFIT: | ||||||||||||||||||||||||||||||||
GAAP gross profit | $ | 19,636 | $ | 18,179 | $ | 14,050 | $ | 65,173 | $ | 61,260 | ||||||||||||||||||||||
Stock-based compensation expense | 79 | 471 | 247 | 924 | 800 | |||||||||||||||||||||||||||
Amortization of purchased intangible assets | 605 | 738 | 642 | 2,543 | 2,472 | |||||||||||||||||||||||||||
Amortization of acquisition-related fixed asset step-up | 208 | 188 | 225 | 1,120 | 1,512 | |||||||||||||||||||||||||||
Amortization of acquisition-related inventory step-up | (176 | ) | 928 | - | 2,897 | - | ||||||||||||||||||||||||||
Acquisition-related retention costs | - | - | 50 | - | 148 | |||||||||||||||||||||||||||
Restructuring charges | 71 | 628 | - | 699 | - | |||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 20,423 | $ | 21,132 | $ | 15,214 | $ | 73,356 | $ | 66,192 | ||||||||||||||||||||||
Non-GAAP gross margin (% of revenue) | 27.5 | % | 27.5 | % | 24.5 | % | 26.0 | % | 27.0 | % | ||||||||||||||||||||||
NON-GAAP LOSS FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||||||
GAAP loss from continuing operations | $ | (4,452 | ) | $ | (9,363 | ) | $ | (2,961 | ) | $ | (34,339 | ) | $ | (17,672 | ) | |||||||||||||||||
Stock-based compensation expense | 1,471 | 1,590 | 1,342 | 5,736 | 4,777 | |||||||||||||||||||||||||||
Amortization of purchased intangible assets | 1,009 | 1,119 | 963 | 4,041 | 3,788 | |||||||||||||||||||||||||||
Amortization of acquisition-related fixed asset step-up | 315 | 302 | 356 | 1,588 | 2,480 | |||||||||||||||||||||||||||
Amortization of acquisition-related inventory step-up | (176 | ) | 928 | - | 2,897 | - | ||||||||||||||||||||||||||
Acquisition-related retention costs | - | - | 92 | - | 1,201 | |||||||||||||||||||||||||||
Acquisition-related transaction costs | 89 | 126 | 537 | 5,406 | 1,447 | |||||||||||||||||||||||||||
Restructuring charges | 71 | 1,077 | (91 | ) | 1,474 | 68 | ||||||||||||||||||||||||||
Fair value adjustment to contingent consideration | - | 1,026 | (308 | ) | 1,026 | (554 | ) | |||||||||||||||||||||||||
Income tax effect of Non-GAAP adjustments | (170 | ) | (39 | ) | (56 | ) | (2,041 | ) | (202 | ) | ||||||||||||||||||||||
Non-GAAP loss from continuing operations | $ | (1,843 | ) | $ | (3,234 | ) | $ | (126 | ) | $ | (14,212 | ) | $ | (4,667 | ) | |||||||||||||||||
ADJUSTED EBITDA FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||||||
GAAP loss from continuing operations | $ | (4,452 | ) | $ | (9,363 | ) | $ | (2,961 | ) | $ | (34,339 | ) | $ | (17,672 | ) | |||||||||||||||||
Stock-based compensation expense | 1,471 | 1,590 | 1,342 | 5,736 | 4,777 | |||||||||||||||||||||||||||
Amortization of purchased intangible assets | 1,009 | 1,119 | 963 | 4,041 | 3,788 | |||||||||||||||||||||||||||
Amortization of acquisition-related fixed asset step-up | 315 | 302 | 356 | 1,588 | 2,480 | |||||||||||||||||||||||||||
Amortization of acquisition-related inventory step-up | (176 | ) | 928 | - | 2,897 | - | ||||||||||||||||||||||||||
Acquisition-related retention costs | - | - | 92 | - | 1,201 | |||||||||||||||||||||||||||
Acquisition-related transaction costs | 89 | 126 | 537 | 5,406 | 1,447 | |||||||||||||||||||||||||||
Restructuring charges | 71 | 1,077 | (91 | ) | 1,474 | 68 | ||||||||||||||||||||||||||
Fair value adjustment to contingent consideration | - | 1,026 | (308 | ) | 1,026 | (554 | ) | |||||||||||||||||||||||||
Interest (income) expense, net | 161 | 185 | (34 | ) | 648 | (24 | ) | |||||||||||||||||||||||||
Provision for income taxes | 334 | 777 | 476 | 1,204 | 1,364 | |||||||||||||||||||||||||||
Depreciation expense | 4,194 | 4,156 | 3,095 | 14,752 | 12,444 | |||||||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 3,016 | $ | 1,923 | $ | 3,467 | $ | 4,433 | $ | 9,319 | ||||||||||||||||||||||
DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||||||
GAAP diluted loss per share from continuing operations | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.10 | ) | $ | (1.11 | ) | $ | (0.62 | ) | |||||||||||||||||
Non-GAAP diluted loss per share from continuing operations | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.00 | ) | $ | (0.46 | ) | $ | (0.16 | ) | |||||||||||||||||
SHARES USED TO COMPUTE NON-GAAP DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS: | ||||||||||||||||||||||||||||||||
Shares used to compute GAAP diluted income (loss) per share from continuing operations | 31,450,916 | 31,184,958 | 30,414,735 | 31,000,325 | 28,529,849 | |||||||||||||||||||||||||||
Shares used to compute non-GAAP diluted income (loss) per share from continuing operations | 31,450,916 | 31,184,958 | 30,414,735 | 31,000,325 | 28,529,849 |
Source:
NeoPhotonics Corporation
Clyde R. Wallin, +1 408-895-6020
Chief
Financial Officer
ray.wallin@neophotonics.com
or
Sapphire
Investor Relations, LLC
Erica Mannion, +1 415-471-2700
Investor
Relations
ir@neophotonics.com