SAN JOSE, Calif.--(BUSINESS WIRE)--NeoPhotonics Corporation (NYSE: NPTN), a leading designer and manufacturer of advanced hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks, today issued a statement regarding the United States Department of Commerce Denial Order which prohibits Chinese telecom equipment maker ZTE Corporation from receiving items subject to the Export Administration Regulations. This order effectively bans companies from selling, exporting or re-exporting components, software and technology to ZTE as a result of ZTE’s actions in connection with its previous settlement regarding sanctions violations.
NeoPhotonics direct revenue from ZTE during fiscal year 2017 was approximately 1% of total revenue. In addition, the Company provides component products to certain ZTE supply chain partners which is estimated in 2017 to have been approximately 3% of total revenue.
Absent the Denial Order, the Company believes it would have grown revenue with ZTE and its supply chain partners due to both share awards and new product design wins. As a result, the Company had expected up to 5% of annualized revenue from these customers which will not be realized. As of March 31, 2018, the Company held products in inventory designated for ZTE that were valued at approximately $1.5 million that will be written off in the first quarter.
NeoPhotonics is a leading 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.
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, including those related to the company. Readers are cautioned that these forward-looking statements involve risks and uncertainties and are only predictions based on the company’s current expectations, estimates and projections about their respective industry and business, management’s beliefs, and certain assumptions made by the company, all of which are subject to change and which may differ materially from actual future events or results. The actual company results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks, uncertainties and assumptions. Certain risks and uncertainties that could cause the company’s results to differ materially from those expressed or implied by such forward-looking statements as well as other risks and uncertainties relating to the company’s business, are described more fully in the Company’s Quarterly Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission.
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Source: NeoPhotonics Corporation