NeoPhotonics Completes Sale of Low Speed Transceiver Business to APAT Optoelectronics

17-Jan-2017 Intellasia | BusinessWire | 8:30 PM Print This Post

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.

Contacts

NeoPhotonics Corporation
Clyde R. Wallin, +1-408-678-1852
Chief
Financial Officer
[email protected]
or
Sapphire
Investor Relations, LLC
Erica Mannion, +1-617-542-6180
Investor
Relations
[email protected]

 


Category: BusinessWire, PRAsia

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