NeoPhotonics Provides Second Quarter 2019 Business Update - Seite 2

    GAAP   Non-GAAP Revenue   $88 to $93 million Gross Margin   23% to 27%   25% to 29% Operating Expenses   $27 +/- $0.5 million   $24 +/- $0.5 million Earnings per share   $0.16 to $0.06 net loss   $0.06 net loss to $0.04 net profit  

The updated Non-GAAP outlook for the second quarter of 2019 excludes the impact of expected inventory write-downs of $8.6 million, the anticipated impact of stock based compensation of $3.5 million, accelerated depreciation of $0.9 million, amortization of intangibles of approximately $0.3 million and a gain on the sale of assets of $0.8 million.

On May 20, 2019, BIS announced a Temporary General License (TGL) which would allow shipment of certain categories of products to Huawei for a period of 90 days. Should the Company receive additional orders from Huawei Technologies or its designated affiliates that are compliant with the Temporary General License, this could favorably impact the revised second quarter outlook. No such benefit is included in the outlook as the Company has no visibility into the timing or magnitude of such orders, if any.

The Company remains focused on preserving working capital in the near-term and is evaluating restructuring options to be cash neutral at a lower revenue level.

As of March 31, 2019 the Company had a net working capital balance of $111 million, which is above the amounts needed to cover outstanding debt.

In addition to this press release, the Company has posted a summary presentation including updated estimates on its investor relations website which can be found at https://ir.neophotonics.com/.

Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures

The Company’s non-GAAP measures exclude certain GAAP financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the text following the table above. 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.