NeoPhotonics (NPTN) Tops Q1 EPS by 12c, Revenues Beat; 2Q Revenue Outlook Above Consensus, 2Q EPS Mid-Point Guidance Above Consensus

NeoPhotonics (NYSE: NPTN) reported Q1 EPS of $0.17, $0.12 better than the analyst estimate of $0.05. Revenue for the quarter came in at $97.4 million versus the consensus estimate of $86.5 million.

First Quarter Summary

• Revenue was $97.4 million, down 6% quarter-over-quarter and up 23% year-over-year
• Gross margin was 30.5%, up from 30.2% in the prior quarter and from 19.8% in the prior year
• Non-GAAP Gross margin was 31.2%, up from 30.9% in the prior quarter and up from 22.4% in the prior year
• Diluted net income per share was $0.12, in comparison to a net income per share of $0.04 in the prior quarter and to a net loss per share of $0.30 in the same period last year
• Non-GAAP diluted net income per share was $0.17, up from $0.10 in the prior quarter and up from a net loss of $0.19 in the same period last year
• Cash generated from operations was $24.9 million, up from $16.3 million in the prior quarter
• Adjusted EBITDA was $17.8 million, up from $12.5 million in the prior quarter and up from a loss of $0.8 million in the same period last year

“We are pleased to deliver another profitable quarter, notably through our seasonally low first quarter, in spite of supply chain risks related to the pandemic,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “As we look forward, the industry continues to move in our direction with higher and higher speed over distance requirements, which are satisfied by our ultra-narrow linewidth lasers, high baud rate coherent components and our Coherent pluggable DCO modules utilizing these leading optical components. Needless to say, we are optimistic about our future,” concluded Mr. Jenks.

GUIDANCE:

NeoPhotonics sees Q2 2020 EPS of $0.05-$0.15, versus the consensus of $0.06. NeoPhotonics sees Q2 2020 revenue of $94-102 million, versus the consensus of $92.99 million.

• This outlook includes approximately $10 million of Covid-19 pandemic related impact to Q2 revenue, reflecting identified supply chain risks.
• The non-GAAP outlook for the second quarter of 2020 excludes the expected impact of stock-based compensation expense of approximately $3.3 million, of which $0.6 million is estimated for cost of goods sold, and the impact of expected amortization of intangibles of approximately $0.2 million.

For earnings history and earnings-related data on NeoPhotonics (NPTN) click here.

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