NeoPhotonics Completes Sale of Low Speed Transceiver Business to APAT Optoelectronics
January 17 2017 - 8:30AM
Business Wire
NeoPhotonics (NYSE:NPTN) (“NEOPHOTONICS” or the “Company”), a
leading designer and manufacturer of advanced hybrid photonic
integrated optoelectronic modules and subsystems for
bandwidth-intensive, high-speed communications networks, today
announced that it has completed the previously announced sale of
its Access and Low Speed transceiver product lines (the “Low Speed
Business”) to APAT Optoelectronics Components Co., Ltd. (“APAT OE”)
of Shenzhen, China, a designer and manufacturer of optical
sub-assemblies for telecom and datacom markets, under previously
announced deal terms.
Commenting on the closing, Tim Jenks, NeoPhotonics’ Chief
Executive Officer stated, “We are pleased to complete the sale of
our Low Speed Business. This transaction further solidifies our
focus on serving the highest speed, highest performance and highest
growth segments in the optical communications market where we
believe our vertically integrated advanced hybrid photonic
integration technology will have the greatest impact.”
In 2015, and for the first nine months of 2016, the Low Speed
Business generated $92.8 million and $50.7 million in revenue,
respectively, and gross profit of $17.1 million and $9.7 million,
respectively. Net assets for the business were approximately $17.0
million as of September 30, 2016.
About NeoPhotonics Corporation
NeoPhotonics is a 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.
About the Low Speed Business
NeoPhotonics’ Low Speed Business designs, manufactures and sells
a portfolio of optical communication transceiver products,
including PON, or passive optical network, transceivers as well as
optical transceivers used in telecom client, access and enterprise
network applications.
About APAT Optoelectronic Components Company, Ltd.
APAT Optoelectronics Components Company, Ltd is a leading
designer, developer and global supplier of optical devices
primarily in the FTTH market. With a focus on automation and
process innovation, APAT OE has achieved a reputation for high
quality and is the supplier of choice for many large telecom
equipment companies. APAT OE is based in Shenzhen, China, a center
for technology innovations and is benefited from the closeness to
its key customers and an abundance of engineering talents. For more
information, visit APAT OE’s website: www.apatoe.com.
APAT, APAT Optoelectronic, and the APAT logo are trademarks of
APAT OE.
© 2017 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: anticipated benefits of the
sale transaction, future financial results, demand for the
Company’s high speed products, 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 relating to the
sale transaction include, but are not limited to, such factors as:
potential purchase price adjustments due to non-achievement of
post-closing transaction warranty commitments; potential effects of
disruption from the transaction; or actual or contingent
liabilities or contractual, intellectual property or employment
issues that arise as a result of the transaction or efforts to
consummate the transaction. Those risks and uncertainties relating
to NeoPhotonics’ continuing business include, but are not limited
to, such factors as: the Company’s reliance on a small number of
customers for a substantial portion of its revenues; ability of the
Company to meet customer demand; market growth in China and other
key countries; 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; 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 impact of the anticipated
sale of the low speed products; 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, 2015 and its Form 10-Q for the three and nine months ended
September 30, 2016. All forward-looking statements are made as of
the date of this press release, and the Company disclaims any duty
to update such statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170117005560/en/
NeoPhotonics CorporationClyde R. Wallin, +1-408-678-1852Chief
Financial Officerray.wallin@neophotonics.comorSapphire Investor
Relations, LLCErica Mannion, +1-617-542-6180Investor
Relationsir@neophotonics.com
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