SAN JOSE, Calif.--(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.