NPTN Stock: From $11.20 To $9.05 Explanation

By Amit Chowdhry ● Apr 30, 2021
  • The stock price of NeoPhotonics Corp (NYSE: NPTN) fell from $11.20 to a day low of $9.05. This is why it happened.

The stock price of NeoPhotonics Corp (NYSE: NPTN) – a leading developer of silicon photonics and advanced hybrid photonic integrated circuit-based lasers, modules, and subsystems for bandwidth-intensive, high-speed communications networks – fell from $11.20 to a day low of $9.05. Investors are responding negatively to the company’s first-quarter of 2021.

Q1 2021 Summary:
— Revenue was $60.9 million, down 11% quarter-over-quarter and 37% year-over-year
— Gross margin was 21.9%, down from 22.7% in the prior quarter
— Non-GAAP gross margin was 22.4%, down from 24.7% in the prior quarter
— Net loss per share was $0.21, compared to a net loss of $0.23 per share in the prior quarter
— Non-GAAP net loss per share was $0.15, compared to Non-GAAP net loss of $0.14 per share in the prior quarter
— Adjusted EBITDA was negative $0.7 million, up from a negative $4.5 million in the prior quarter

The non-GAAP results in the first quarter of 2021 exclude a net gain of $0.6 million on a reduction in materials reserves, and expenses of $3.3 million of stock-based compensation, $0.5 million of accelerated depreciation, amortization and other charges. As of March 31, 2021, the company’s cash and cash equivalents, short-term investments and restricted cash totaled $111 million.

This is the company’s outlook for the quarter ending June 30, 2021:
Revenue: $59 to $65 million (GAAP)
Gross Margin: 15%-19% (GAAP)
Operating Expenses: $25 to $26 million (GAAP)
EPS: ($0.35)-($0.25) (GAAP)

KEY QUOTE:

“NeoPhotonics again delivered strong results in the first quarter, as we transition our business to cloud-centric. We demonstrated transmission of 400G data rates over 800 km using our 400ZR+ coherent modules. We are excited about the prospects these modules are demonstrating for the next generation of highest speed over distance interconnects.”

— Tim Jenks, NeoPhotonics CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.