NeoPhotonics Issues Statement Regarding U.S. Department of Commerce Ruling on ZTE
SAN JOSE, Calif.--(BUSINESS WIRE)--Apr. 17, 2018--
NeoPhotonics Corporation (NYSE: NPTN), a leading designer and
manufacturer of advanced hybrid photonic integrated optoelectronic
modules and subsystems for bandwidth-intensive, high-speed
communications networks, today issued a statement regarding the United
States Department of Commerce Denial Order which prohibits Chinese
telecom equipment maker ZTE Corporation from receiving items subject to
the Export Administration Regulations. This order effectively bans
companies from selling, exporting or re-exporting components, software
and technology to ZTE as a result of ZTE’s actions in connection with
its previous settlement regarding sanctions violations.
NeoPhotonics direct revenue from ZTE during fiscal year 2017 was
approximately 1% of total revenue. In addition, the Company provides
component products to certain ZTE supply chain partners which is
estimated in 2017 to have been approximately 3% of total revenue.
Absent the Denial Order, the Company believes it would have grown
revenue with ZTE and its supply chain partners due to both share awards
and new product design wins. As a result, the Company had expected up to
5% of annualized revenue from these customers which will not be
realized. As of March 31, 2018, the Company held products in inventory
designated for ZTE that were valued at approximately $1.5 million that
will be written off in the first quarter.
NeoPhotonics is a leading designer and manufacturer of advanced hybrid
photonic integrated optoelectronic 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), Japan and China. For additional information visit www.neophotonics.com.
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,
including those related to the company. Readers are cautioned that these
forward-looking statements involve risks and uncertainties and are only
predictions based on the company’s current expectations, estimates and
projections about their respective industry and business, management’s
beliefs, and certain assumptions made by the company, all of which are
subject to change and which may differ materially from actual future
events or results. The actual company 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.
Certain risks and uncertainties that could cause the company’s results
to differ materially from those expressed or implied by such
forward-looking statements as well as other risks and uncertainties
relating to the company’s business, are described more fully in the
Company’s Quarterly Report on Form 10-K for the year ended December 31,
2017 filed with the Securities and Exchange Commission.
© 2018 NeoPhotonics Corporation. All rights reserved. NeoPhotonics and
the red dot logo are trademarks of NeoPhotonics Corporation. All other
marks are the property of their respective owners.
Source: NeoPhotonics Corporation
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Source: NeoPhotonics Corporation
Chief Financial Officer
Investor Relations, LLC
Erica Mannion, +1-617-542-6180