Attached files
| file | filename |
|---|---|
| 8-K - 8-K - NEOPHOTONICS CORP | nptn-8k_20150806.htm |
Exhibit 99.1
NeoPhotonics Reports Second Quarter 2015 Financial Results
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· |
Achieved Record Quarter Revenue of $85.4 million |
|
· |
Expanded Non-GAAP Gross Margin to 32.3% |
|
· |
Achieved Fourth Consecutive Quarter of Non-GAAP Profitability, and Achieved Third Consecutive Quarter of GAAP Profitability |
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· |
Achieved Fourth Consecutive Quarter of Positive Cash Flows from Operations |
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· |
Completed Secondary Offering of 6.9 million shares for net proceeds of $45.6 million |
SAN JOSE, Calif. — August 6, 2015 - NeoPhotonics Corporation (NYSE: NPTN), a leading designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks, today announced financial results for its second quarter ended June 30, 2015.
“Our goal is to be a leader in High Speed 100G and beyond product solutions and to deliver sustained profitability. With strong traction of our High Speed 100G and beyond products in transport and Metro markets as well as in rapidly growing Datacenter Interconnect system applications, 59% of our revenue was from High Speed 100G and above products. Our second quarter results continue to demonstrate our strong execution towards our profitability goals and our target model with sequential increases in revenue, gross margins, profitability, EBITDA and operating cash flow,” said Tim Jenks, NeoPhotonics Chairman and CEO. “We further bolstered our balance sheet with our equity raise of $45.6 million,” continued Mr. Jenks.
Second Quarter Summary
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· |
Revenue was $85.4 million, up $7.9 million, or 10.2%, from the second quarter of 2014, and up $4.0 million, or 4.9%, from the prior quarter |
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· |
Gross margin was 30.6%, up from 18.8% in the second quarter of 2014, and up from 29.6% in the prior quarter |
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· |
Non-GAAP gross margin was 32.3%, up from 20.8% in the second quarter of 2014, and up from 31.3% in the prior quarter |
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· |
Net income was $1.8 million, up from a loss of $6.8 million in the second quarter of 2014, and up from $0.1 million in the prior quarter |
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· |
Non-GAAP net income was $5.3 million, up from a loss of $7.5 million in the second quarter of 2014, and up from $4.2 million in the prior quarter |
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· |
Diluted earnings per share was $0.05, an improvement from a loss of $0.21 in the second quarter of 2014, and up from a slightly above positive reading of $0.00 in the prior quarter |
|
· |
Non-GAAP diluted earnings per share was $0.14, up from a loss of $0.24 in the second quarter of 2014, and up from earnings of $0.13 in the prior quarter |
Page | 1
Exhibit 99.1
At June 30, 2015, cash and cash equivalents, short-term investments and restricted cash and investments, together totaled $104.4 million, up $30.1 million from $74.3 million at March 31, 2015. Restricted cash and investments at June 30, 2015 was $4.0 million, consistent with March 31, 2015.
Outlook for the Quarter Ending September 30, 2015
The Company’s expectations for the third quarter 2015 are:
|
· |
Revenue in the range of $77 million to $83 million |
|
· |
Non-GAAP gross margin in the range of 29% to 32% |
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· |
Diluted net income/loss per share in the range of a loss of 6 cents to earnings of 2 cents, and |
|
· |
Non-GAAP diluted earnings per share in the range of 1 cent to 9 cents |
The Non-GAAP outlook for the third quarter of 2015 excludes the expected amortization of intangibles and other assets of approximately $1.4 million and the anticipated impact of stock-based compensation of approximately $1.9 million, of which $0.4 million is estimated for cost of goods sold.
Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures
The Company’s 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. These non-GAAP financial measures differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. NeoPhotonics believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Conference Call
The Company will host a conference call today, August 6, 2015, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call will be available, live, to interested parties by dialing +1 888-427-9419. For international callers, please dial +1 719-325-2491. The Conference ID number is 6568190. A live webcast will also be available in the Investors Relations section of NeoPhotonics website at: www.neophotonics.com.
A replay of the webcast will be available in the Investor Relations section of the Company’s web site after the conclusion of the call and remain available for 30 calendar days.
Page | 2
Exhibit 99.1
About NeoPhotonics
NeoPhotonics is a leading designer and manufacturer of 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.
© 2015 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.
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, the Company’s market position 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; 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, supporting utility services 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, including the recent acquisition of EMCORE’s tunable laser product line; market adoption, revenue growth and margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements and forecasts; the timely and successful development and market acceptance of new products and upgrades to existing products; the difficulty of predicting future cash needs; the nature of other investment opportunities available to the Company from time to time; the Company’s operating cash flow; changes in economic and industry projections; a decline in general conditions in the telecommunications equipment industry or the world economy generally; and the effects of seasonality. For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2014 as well as the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2015 and the final prospectus relating to our
Page | 3
Exhibit 99.1
follow-on offering filed pursuant to Rule 424(b)(4) filed on May 22, 2015. All forward-looking statements are made as of the date of this press release, and the Company disclaims any duty to update such statements.
Source: NeoPhotonics Corporation
NeoPhotonics Corporation
Clyde R. Wallin, +1-408-895-6020
Chief Financial Officer
ray.wallin@neophotonics.com
Sapphire Investor Relations, LLC
Erica Mannion, +1-415-471-2700
Investor Relations
ir@neophotonics.com
Page | 4
Exhibit 99.1
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NeoPhotonics Corporation |
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Condensed Consolidated Balance Sheets (Unaudited) |
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(In thousands) |
|
||||||||
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
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|
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|
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|
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As of |
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|||||
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|
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June 30, 2015 |
|
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December 31, 2014 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
92,135 |
|
|
$ |
43,035 |
|
|
Short-term investments |
|
|
|
8,296 |
|
|
|
- |
|
|
Restricted cash and investments |
|
|
|
3,961 |
|
|
|
5,504 |
|
|
Accounts receivable, net |
|
|
|
79,389 |
|
|
|
77,597 |
|
|
Inventories, net |
|
|
|
69,655 |
|
|
|
57,347 |
|
|
Prepaid expenses and other current assets |
|
|
|
12,036 |
|
|
|
15,540 |
|
|
Total current assets |
|
|
|
265,472 |
|
|
|
199,023 |
|
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Property, plant and equipment, net |
|
|
|
61,832 |
|
|
|
57,657 |
|
|
Restricted cash and investments, non-current |
|
|
|
- |
|
|
|
15,750 |
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Purchased intangible assets, net |
|
|
|
12,441 |
|
|
|
10,263 |
|
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Goodwill |
|
|
|
1,115 |
|
|
|
- |
|
|
Other long-term assets |
|
|
|
2,130 |
|
|
|
3,591 |
|
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Total assets |
|
|
$ |
342,990 |
|
|
$ |
286,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
|
|
|
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Accounts payable |
|
|
$ |
55,636 |
|
|
$ |
48,949 |
|
|
Notes payable and short-term borrowing |
|
|
|
18,183 |
|
|
|
22,771 |
|
|
Current portion of long-term debt |
|
|
|
16,543 |
|
|
|
2,445 |
|
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Accrued and other current liabilities |
|
|
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19,812 |
|
|
|
22,728 |
|
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Total current liabilities |
|
|
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110,174 |
|
|
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96,893 |
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Long-term debt, net of current portion |
|
|
|
10,925 |
|
|
|
20,891 |
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Deferred income tax liabilities |
|
|
|
1,787 |
|
|
|
1,818 |
|
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Other noncurrent liabilities |
|
|
|
7,482 |
|
|
|
7,226 |
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Total liabilities |
|
|
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130,368 |
|
|
|
126,828 |
|
|
|
|
|
|
|
|
|
|
|
|
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Stockholders' equity: |
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|
|
|
|
|
|
|
|
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Common stock |
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|
|
100 |
|
|
|
82 |
|
|
Additional paid-in capital |
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|
|
506,861 |
|
|
|
456,189 |
|
|
Accumulated other comprehensive income |
|
|
|
5,911 |
|
|
|
5,326 |
|
|
Accumulated deficit |
|
|
|
(300,250 |
) |
|
|
(302,141 |
) |
|
Total stockholders' equity |
|
|
|
212,622 |
|
|
|
159,456 |
|
|
Total liabilities and stockholders' equity |
|
|
$ |
342,990 |
|
|
$ |
286,284 |
|
Page | 5
Exhibit 99.1
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NeoPhotonics Corporation |
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Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||||||
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(In thousands, except percentages and per share data) |
||||||||||||||||||||
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|
|
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|
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|
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|
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|
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|
|
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Three Months Ended |
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Six Months Ended |
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||||||||||||||
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June 30, 2015 |
|
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Mar. 31, 2015 |
|
|
June 30, 2014 |
|
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June 30, 2015 |
|
|
June 30, 2014 |
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|||||
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Revenue |
|
$ |
85,372 |
|
|
$ |
81,384 |
|
|
$ |
77,451 |
|
|
$ |
166,756 |
|
|
$ |
145,619 |
|
|
Cost of goods sold (1) |
|
|
59,226 |
|
|
|
57,331 |
|
|
|
62,883 |
|
|
|
116,557 |
|
|
|
117,251 |
|
|
Gross profit |
|
|
26,146 |
|
|
|
24,053 |
|
|
|
14,568 |
|
|
|
50,199 |
|
|
|
28,368 |
|
|
Gross margin |
|
|
30.6 |
% |
|
|
29.6 |
% |
|
|
18.8 |
% |
|
|
30.1 |
% |
|
|
19.5 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1) |
|
|
11,457 |
|
|
|
10,482 |
|
|
|
12,085 |
|
|
|
21,939 |
|
|
|
24,141 |
|
|
Sales and marketing (1) |
|
|
3,906 |
|
|
|
3,744 |
|
|
|
3,571 |
|
|
|
7,650 |
|
|
|
6,982 |
|
|
General and administrative (1) |
|
|
7,419 |
|
|
|
8,196 |
|
|
|
8,193 |
|
|
|
15,615 |
|
|
|
17,180 |
|
|
Amortization of purchased intangible assets |
|
|
448 |
|
|
|
449 |
|
|
|
379 |
|
|
|
897 |
|
|
|
758 |
|
|
Acquisition-related costs |
|
|
147 |
|
|
|
140 |
|
|
|
- |
|
|
|
287 |
|
|
|
- |
|
|
Restructuring charges |
|
|
20 |
|
|
|
6 |
|
|
|
- |
|
|
|
26 |
|
|
|
- |
|
|
Escrow settlement gain |
|
|
- |
|
|
|
- |
|
|
|
(3,886 |
) |
|
|
- |
|
|
|
(3,886 |
) |
|
Total operating expenses |
|
|
23,397 |
|
|
|
23,017 |
|
|
|
20,342 |
|
|
|
46,414 |
|
|
|
45,175 |
|
|
Income (loss) from operations |
|
|
2,749 |
|
|
|
1,036 |
|
|
|
(5,774 |
) |
|
|
3,785 |
|
|
|
(16,807 |
) |
|
Interest income |
|
|
23 |
|
|
|
30 |
|
|
|
38 |
|
|
|
53 |
|
|
|
103 |
|
|
Interest expense |
|
|
(456 |
) |
|
|
(506 |
) |
|
|
(311 |
) |
|
|
(962 |
) |
|
|
(562 |
) |
|
Other income (expense), net |
|
|
602 |
|
|
|
(46 |
) |
|
|
(635 |
) |
|
|
556 |
|
|
|
(1,242 |
) |
|
Total interest and other income (expense), net |
|
|
169 |
|
|
|
(522 |
) |
|
|
(908 |
) |
|
|
(353 |
) |
|
|
(1,701 |
) |
|
Income (loss) before income taxes |
|
|
2,918 |
|
|
|
514 |
|
|
|
(6,682 |
) |
|
|
3,432 |
|
|
|
(18,508 |
) |
|
Provision for income taxes |
|
|
(1,127 |
) |
|
|
(414 |
) |
|
|
(97 |
) |
|
|
(1,541 |
) |
|
|
(859 |
) |
|
Net income (loss) |
|
$ |
1,791 |
|
|
$ |
100 |
|
|
$ |
(6,779 |
) |
|
$ |
1,891 |
|
|
$ |
(19,367 |
) |
|
Basic net income (loss) per share |
|
$ |
0.05 |
|
|
$ |
0.00 |
|
|
$ |
(0.21 |
) |
|
$ |
0.06 |
|
|
$ |
(0.61 |
) |
|
Diluted net income (loss) per share |
|
$ |
0.05 |
|
|
$ |
0.00 |
|
|
$ |
(0.21 |
) |
|
$ |
0.05 |
|
|
$ |
(0.61 |
) |
|
Weighted averages shares used to compute basic net income (loss) per share |
|
|
35,684 |
|
|
|
32,780 |
|
|
|
31,790 |
|
|
|
34,240 |
|
|
|
31,701 |
|
|
Weighted averages shares used to compute diluted net income (loss) per share |
|
|
37,294 |
|
|
|
33,031 |
|
|
|
31,790 |
|
|
|
35,128 |
|
|
|
31,701 |
|
|
(1) Includes stock-based compensation expense as follows for the periods presented: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
410 |
|
|
$ |
370 |
|
|
$ |
455 |
|
|
$ |
780 |
|
|
$ |
785 |
|
|
Research and development |
|
|
501 |
|
|
|
493 |
|
|
|
408 |
|
|
|
994 |
|
|
|
1,115 |
|
|
Sales and marketing |
|
|
447 |
|
|
|
453 |
|
|
|
587 |
|
|
|
900 |
|
|
|
960 |
|
|
General and administrative |
|
|
568 |
|
|
|
740 |
|
|
|
273 |
|
|
|
1,308 |
|
|
|
764 |
|
|
Total stock-based compensation expense |
|
$ |
1,926 |
|
|
$ |
2,056 |
|
|
$ |
1,723 |
|
|
$ |
3,982 |
|
|
$ |
3,624 |
|
Page | 6
Exhibit 99.1
|
NeoPhotonics Corporation |
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Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) |
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(In thousands, except percentages and per share data) |
||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||
|
|
|
June 30, 2015 |
|
|
Mar. 31, 2015 |
|
|
|
|
June 30, 2014 |
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
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|
NON-GAAP GROSS PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
26,146 |
|
|
$ |
24,053 |
|
|
|
|
$ |
14,568 |
|
|
$ |
50,199 |
|
|
$ |
28,368 |
|
|
Stock-based compensation expense |
|
|
410 |
|
|
|
370 |
|
|
|
|
|
455 |
|
|
|
780 |
|
|
|
785 |
|
|
Amortization of purchased intangible assets |
|
|
837 |
|
|
|
839 |
|
|
|
|
|
714 |
|
|
|
1,676 |
|
|
|
1,428 |
|
|
Depreciation of acquisition-related fixed asset step-up |
|
|
(43 |
) |
|
|
172 |
|
|
|
|
|
337 |
|
|
|
129 |
|
|
|
459 |
|
|
Amortization of acquisition-related inventory step-up |
|
|
78 |
|
|
|
78 |
|
|
|
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
Restructuring charges |
|
|
125 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
125 |
|
|
|
- |
|
|
Non-GAAP gross profit |
|
$ |
27,553 |
|
|
$ |
25,512 |
|
|
|
|
$ |
16,074 |
|
|
$ |
53,065 |
|
|
$ |
31,040 |
|
|
Non-GAAP gross margin as a % of revenue |
|
|
32.3 |
% |
|
|
31.3 |
% |
|
|
|
|
20.8 |
% |
|
|
31.8 |
% |
|
|
21.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP TOTAL OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Total operating expenses |
|
$ |
23,397 |
|
|
$ |
23,017 |
|
|
|
|
$ |
20,342 |
|
|
$ |
46,414 |
|
|
$ |
45,175 |
|
|
Stock-based compensation expense |
|
|
(1,516 |
) |
|
|
(1,686 |
) |
|
|
|
|
(1,268 |
) |
|
|
(3,202 |
) |
|
|
(2,839 |
) |
|
Amortization of purchased intangible assets |
|
|
(448 |
) |
|
|
(449 |
) |
|
|
|
|
(379 |
) |
|
|
(897 |
) |
|
|
(758 |
) |
|
Depreciation of acquisition-related fixed asset step-up |
|
|
(123 |
) |
|
|
(290 |
) |
|
|
|
|
(321 |
) |
|
|
(413 |
) |
|
|
(418 |
) |
|
Acquisition-related costs |
|
|
(147 |
) |
|
|
(140 |
) |
|
|
|
|
- |
|
|
|
(287 |
) |
|
|
7 |
|
|
Restructuring charges |
|
|
(20 |
) |
|
|
(6 |
) |
|
|
|
|
- |
|
|
|
(26 |
) |
|
|
- |
|
|
Litigation |
|
|
- |
|
|
|
(278 |
) |
|
|
|
|
- |
|
|
|
(278 |
) |
|
|
- |
|
|
Escrow settlement gain |
|
|
- |
|
|
|
- |
|
|
|
|
|
3,886 |
|
|
|
- |
|
|
|
3,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP total operating expenses |
|
$ |
21,143 |
|
|
$ |
20,168 |
|
|
|
|
$ |
22,260 |
|
|
$ |
41,311 |
|
|
$ |
45,053 |
|
|
Non-GAAP total operating expenses as a % of revenue |
|
|
24.8 |
% |
|
|
24.8 |
% |
|
|
|
|
28.7 |
% |
|
|
24.8 |
% |
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
$ |
2,749 |
|
|
$ |
1,036 |
|
|
|
|
$ |
(5,774 |
) |
|
$ |
3,785 |
|
|
$ |
(16,807 |
) |
|
Stock-based compensation expense |
|
|
1,926 |
|
|
|
2,056 |
|
|
|
|
|
1,723 |
|
|
|
3,982 |
|
|
|
3,624 |
|
|
Amortization of purchased intangible assets |
|
|
1,285 |
|
|
|
1,288 |
|
|
|
|
|
1,093 |
|
|
|
2,573 |
|
|
|
2,186 |
|
|
Depreciation of acquisition-related fixed asset step-up |
|
|
80 |
|
|
|
462 |
|
|
|
|
|
658 |
|
|
|
542 |
|
|
|
877 |
|
|
Amortization of acquisition-related inventory step-up |
|
|
78 |
|
|
|
78 |
|
|
|
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
Acquisition-related costs |
|
|
147 |
|
|
|
140 |
|
|
|
|
|
- |
|
|
|
287 |
|
|
|
(7 |
) |
|
Restructuring charges |
|
|
145 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
|
Litigation |
|
|
- |
|
|
|
278 |
|
|
|
|
|
- |
|
|
|
278 |
|
|
|
- |
|
|
Escrow settlement gain |
|
|
- |
|
|
|
- |
|
|
|
|
|
(3,886 |
) |
|
|
- |
|
|
|
(3,886 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss) |
|
$ |
6,410 |
|
|
$ |
5,344 |
|
|
|
|
$ |
(6,186 |
) |
|
$ |
11,754 |
|
|
$ |
(14,013 |
) |
|
Non-GAAP operating margin as a % of revenue |
|
|
7.5 |
% |
|
|
6.6 |
% |
|
|
|
|
(8.0 |
)% |
|
|
7.0 |
% |
|
|
(9.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP NET INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
1,791 |
|
|
$ |
100 |
|
|
|
|
$ |
(6,779 |
) |
|
$ |
1,891 |
|
|
$ |
(19,367 |
) |
|
Stock-based compensation expense |
|
|
1,926 |
|
|
|
2,056 |
|
|
|
|
|
1,723 |
|
|
|
3,982 |
|
|
|
3,624 |
|
|
Amortization of purchased intangible assets |
|
|
1,285 |
|
|
|
1,288 |
|
|
|
|
|
1,093 |
|
|
|
2,573 |
|
|
|
2,186 |
|
|
Depreciation of acquisition-related fixed asset step-up |
|
|
80 |
|
|
|
462 |
|
|
|
|
|
658 |
|
|
|
542 |
|
|
|
877 |
|
|
Amortization of acquisition-related inventory step-up |
|
|
78 |
|
|
|
78 |
|
|
|
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
Acquisition-related costs |
|
|
147 |
|
|
|
140 |
|
|
|
|
|
- |
|
|
|
287 |
|
|
|
(7 |
) |
|
Restructuring charges |
|
|
145 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
|
Litigation |
|
|
- |
|
|
|
278 |
|
|
|
|
|
- |
|
|
|
278 |
|
|
|
- |
|
Page | 7
Exhibit 99.1
|
NeoPhotonics Corporation |
||||||||||||||||||||||
|
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||||||||
|
(In thousands, except percentages and per share data) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||
|
|
|
June 30, 2015 |
|
|
Mar. 31, 2015 |
|
|
|
|
June 30, 2014 |
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
|||||
|
|
|
- |
|
|
|
- |
|
|
|
|
|
(3,886 |
) |
|
|
- |
|
|
|
(3,886 |
) |
|
|
Income tax effect of Non-GAAP adjustments |
|
|
(109 |
) |
|
|
(249 |
) |
|
|
|
|
(298 |
) |
|
|
(358 |
) |
|
|
(422 |
) |
|
Non-GAAP net income (loss) |
|
$ |
5,343 |
|
|
$ |
4,159 |
|
|
|
|
$ |
(7,489 |
) |
|
$ |
9,502 |
|
|
$ |
(16,995 |
) |
|
Non-GAAP net income (loss) as a % of revenue |
|
|
6.3 |
% |
|
|
5.1 |
% |
|
|
|
|
(9.7 |
)% |
|
|
5.7 |
% |
|
|
(11.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
1,791 |
|
|
$ |
100 |
|
|
|
|
$ |
(6,779 |
) |
|
$ |
1,891 |
|
|
$ |
(19,367 |
) |
|
Stock-based compensation expense |
|
|
1,926 |
|
|
|
2,056 |
|
|
|
|
|
1,723 |
|
|
|
3,982 |
|
|
|
3,624 |
|
|
Amortization of purchased intangible assets |
|
|
1,285 |
|
|
|
1,288 |
|
|
|
|
|
1,093 |
|
|
|
2,573 |
|
|
|
2,186 |
|
|
Depreciation of acquisition-related fixed asset step-up |
|
|
80 |
|
|
|
462 |
|
|
|
|
|
658 |
|
|
|
542 |
|
|
|
877 |
|
|
Amortization of acquisition-related inventory step-up |
|
|
78 |
|
|
|
78 |
|
|
|
|
|
- |
|
|
|
156 |
|
|
|
- |
|
|
Acquisition-related costs |
|
|
147 |
|
|
|
140 |
|
|
|
|
|
- |
|
|
|
287 |
|
|
|
(7 |
) |
|
Restructuring charges |
|
|
145 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
151 |
|
|
|
- |
|
|
Litigation |
|
|
- |
|
|
|
278 |
|
|
|
|
|
- |
|
|
|
278 |
|
|
|
- |
|
|
Escrow settlement gain |
|
|
- |
|
|
|
- |
|
|
|
|
|
(3,886 |
) |
|
|
- |
|
|
|
(3,886 |
) |
|
Interest expense, net |
|
|
433 |
|
|
|
476 |
|
|
|
|
|
273 |
|
|
|
909 |
|
|
|
459 |
|
|
Provision for income taxes |
|
|
1,127 |
|
|
|
414 |
|
|
|
|
|
97 |
|
|
|
1,541 |
|
|
|
859 |
|
|
Depreciation expense |
|
|
4,375 |
|
|
|
4,556 |
|
|
|
|
|
4,187 |
|
|
|
8,931 |
|
|
|
8,403 |
|
|
Adjusted EBITDA |
|
$ |
11,387 |
|
|
$ |
9,854 |
|
|
|
|
$ |
(2,634 |
) |
|
$ |
21,241 |
|
|
$ |
(6,852 |
) |
|
Adjusted EBITDA as a % of revenue |
|
|
13.3 |
% |
|
|
12.1 |
% |
|
|
|
|
(3.4 |
)% |
|
|
12.7 |
% |
|
|
(4.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic and diluted net income (loss) per share |
|
$ |
0.05 |
|
|
$ |
0.00 |
|
|
|
|
$ |
(0.21 |
) |
|
$ |
0.06 |
|
|
$ |
(0.61 |
) |
|
GAAP diluted net income (loss) per share |
|
$ |
0.05 |
|
|
$ |
0.00 |
|
|
|
|
$ |
(0.21 |
) |
|
$ |
0.05 |
|
|
$ |
(0.61 |
) |
|
Non-GAAP basic net income (loss) per share |
|
$ |
0.15 |
|
|
$ |
0.13 |
|
|
|
|
$ |
(0.24 |
) |
|
$ |
0.28 |
|
|
$ |
(0.54 |
) |
|
Non-GAAP diluted net income (loss) per share |
|
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
$ |
(0.24 |
) |
|
$ |
0.26 |
|
|
$ |
(0.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED TO COMPUTE GAAP AND NON-GAAP BASIC NET INCOME (LOSS) PER SHARE |
|
|
35,684 |
|
|
|
32,780 |
|
|
|
|
|
31,790 |
|
|
|
34,240 |
|
|
|
31,701 |
|
|
SHARES USED TO COMPUTE GAAP DILUTED NET INCOME (LOSS) PER SHARE |
|
|
37,294 |
|
|
|
33,031 |
|
|
|
|
|
31,790 |
|
|
|
35,128 |
|
|
|
31,701 |
|
|
SHARES USED TO COMPUTE NON-GAAP DILUTED NET INCOME (LOSS) PER SHARE |
|
|
38,465 |
|
|
|
33,240 |
|
|
|
|
|
31,790 |
|
|
|
36,054 |
|
|
|
31,701 |
|
Page | 8